Can A Landlord Sell a House With Tenants?

Can A Landlord Sell A House With Tenants In It

The question “Can A Landlord Sell A House With Tenants In It?” can be answered by looking at the tenant’s and landlord’s legal rights.

Can A Landlord Sell A House While Renting?

As a private landlord or owner, you will be legally entitled to sell your house as long as you abide by and complete all processes in the correct legal manner.  Some of the reasons why a private landlord may want to sell their property could be that the price has risen, or that they no longer want to be a landlord and have the responsibilities that come with it. 

Can A Landlord Sell A House With Tenants In It?

The short answer is yes. The tenant has no rights in relation to the sale as they are not owners nor do they have any equity in the house.  However, the tenants do have legal rights under there tenancy agreement.

Responsibilities Of The New Landlord

Landlords in situ must notify the existing tenants of the property purchase including name, address and contact details of the new landlord.  The new landlord must also check the safety inspections are up to date and that the tenants comply with legal renting requirements in the UK. The deposit must also be transferred over to the new landlord and then placed in a tenancy deposit scheme.  This is covered under Section 3 of the Landlord and Tenant Act 1985.

Tenants Rights If Landlord Wants To Sell Property

You have just been notified that your landlord wants to sell the house that you are renting from him, whilst this may not be the scenario you want, it is always best to understand your rights as a tenant.

Can A Landlord Evict Tenants If Selling The House?

No. The new landlord has to take on the lease the previous landlord made.  A tenant cannot be legally evicted until the fixed-term contract has ended unless they have breached the legally binding agreement. It is very important that all tenants read the agreement before signing. 

What Rights Do I Have If My Landlord Decides To sell?

If the landlord does decide to sell then the tenants do have rights to protect them in law. Once a house has been rented out for a fixed term the tenants have rights from the beginning to the end of the contract, regardless of the house owner. This, in turn, means that if the house is sold to another landlord, it will be against the law for the new landlord to evict the existing tenants, whilst the agreement is still in place and running. 

The tenant is also entitled to his/her privacy, this is covered by the Landlord and Tenant Act 1985. What does this mean, this means that unless there is an emergency, the tenant is fully permitted to refuse entry to anyone connected to the sale, this will also include any prospective buyers. The tenant can also refuse entry to the landlord, even if they give 24 hours notice to enter.

What Notice Does A Landlord Need To Give When Selling A House?

This is covered under the Landlord and Tenant Act 1985, any new landlord is required to notify any tenants that the property has been sold to another landlord, however, there is no legal obligation to notify the tenants of when the property is being marketed for sale or the price in which the house is being sold for, the existing landlord may as a matter of courtesy inform the tenants but they have no legal right to.

What Happens If The Landlord Sells To Another Landlord?

If your existing landlord decides to sell his house to another landlord, and there is a valid tenancy agreement running and you are in occupation, then the new landlord is obligated to perform all the duties that are within the original tenancy agreement that has been signed by the previous landlord.  This will include all repairs and any maintenance, and all works must be carried out in a professional manner and a reasonable time. If the new landlord fails to comply with these regulations they are then in breach of contract and the tenant can withhold rent, and report the landlord to the courts.

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