Expert: liznarr - 8/1/2009

Question
We are wanting to list a rental house in Virginia and the occupants still have 7 months left on the lease. Can they legally stop the R.E. agent from showing the home? I have already been having a problem with these people even though we have given first option to buy and even offered to help them find financing. We have waited several months for them to make up their minds and they didn't want to buy.


Answer
Hi Deborah,

It depends on the laws in your state.  Most states recognize the Uniform Residential Landlord and Tenant Act which governs most circumstances, or either have their own Landlord and Tenant Act.

There are several places you can check for answers:

1.   Ask a good local attorney in your area about laws in your state.
2.   Check with your State’s real estate commission and ask this question.  
3.   Call a Property Management company in your area; they would know the answer.

You can also search your State’s Code of Laws and look for a “Residential Landlord and Tenant Act.  Go to www.google.com and type in the words “Code of Laws” (and also add your state to the words).  You should pull up a number of links, one of which should direct you to your state’s Code of Laws.

So that you will know what you will be looking for, I have quoted below the appropriate section from my State’s Code where it specifically states that “A tenant shall not unreasonably withhold consent to the landlord to enter into the dwelling in order to …exhibit the dwelling unit to prospective or actual purchasers …”

“SECTION 27-40-530. Access.  (a) A tenant shall not unreasonably withhold consent to the landlord to enter into the dwelling unit in order to inspect the premises, make necessary or agreed repairs, decorations, alterations, or improvements, supply necessary or agreed services, or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workmen, or contractors.”

A tenant does not, however, necessarily have to agree for you to place a lockbox on the property.  Doing so without their written consent could set you up for liability and a potential lawsuit.

Even if you do not have language in your Lease allowing you to show your property to prospective purchasers while a Tenant is in possession, but your State laws allow it, I believe you still have the right to show.  An attorney would have to properly advise you on this -- and whether or not a Tenant’s refusal to allow you to show would constitute Breach of Contract, wherein you could then start an eviction proceeding – or at least let them know you will consider such an action if they do not cooperate.  

A tenant can make it difficult for a Seller when they do not cooperate with showing, but maybe you can strike an agreement somehow with your tenant.  

Good luck to you, and feel free to write again if you have additional questions.

Regards,
Elizabeth