Do renters have to pay rent if their house is in a short sale?
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Do renters have to pay rent if their house is in a short sale?
The apartment we are renting was put on short sale short after we signed the lease. The landlord has a potential buyer but we have 6 months left on the lease. What happens to our lease (and a security deposit)?
Asked on December 6, 2011 under Real Estate Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
A short sale, unlike a foreclosure, does *not* affect your lease or rental. The new buyer purchases the home subject to any existing leases and will become your new landlord; so you pay your rent to the current landlord until the sale closes, then you pay to the new landlord.
Depending on your state, either the security deposit is transferred to the new landlord, or else the old landlord returns your current deposit and you provide a new one to the new landlord. Each state is free to se it's own rules on this, so you need to look up what your state does (or repost your question with the identify of your state for someone here to answer).
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