If we never received notice of a change in ownership, is our lease still valid?
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If we never received notice of a change in ownership, is our lease still valid?
We signed a 12 month lease to company X; we make our rent check payable to company X. Our landlord has now starting writing company Y above company X since ownership transferred several months ago.
Asked on November 8, 2012 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
When a building is sold, the buyer takes it subject to any then-in-force leases; that is, the buyer becomes the new landlord, under the terms of your exising lease. This rule also applies to other voluntary "non-sale" transfers of ownership, such as if one company owned by someone transfers the building to another company owned in whole or part by that person.
If the building were foreclosed upon by a bank for not paying a mortgage or HELOC, or by a municipality for not paying taxes, and someone bought the building at foreclosure sale, however, then the lease would potentially no longer be in force--it depends on who bought it, for what purpose.
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