Expert: Ray Beggs - 6/9/2006

Question
I have a lease for one year.  


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Followup To

Question -
I have signed a lease for a townhome in San Diego.  I also have placed a $1500 deposit down on the property a few weeks ago.

The owner called me yesterday and told me a "fluke" thing happened where they got an offer on the home after we already signed the lease.  She said they offer was one they couldn't refuse and told me that if they sell the property, our lease agreement is null and void.  In the lease it state that I am to take posession on 6/23, which is right around the corner!  I have also given notice to my landlord, bought furniture that is already inside the new home and sold furntiure.  I am sick that this can happen.

From what I have researched, the new owners must honor my lease.  The lease agreement state NOTHING regarding the owner selling the home.  Is this correct?  I also believe that the new owners are not aware that there is a lease on the property since it is vacant.

Is there anything else I should know to defend our position.  We are devastated by this and want to know what to do next.

Thanks for any advice you can offer!

Kelly

Answer -
Hi Kelly,

Wow, what a bummer. This is beyond my scope but I will tell you my opinion about what I would do. First off, it isn't so much that the new buyers have to honor your lease, it's that they can get out of the deal if they don't want to honor your lease. If they weren't made aware that there was a lease, then that is something that they can cancel their purchase contract for. They wouldn't be obligated to honor a lease that they didn't know about. Now, you'll have to talk to a local real estate attorney about what to do here forward if you would like to continue forward with the lease. You're in, unfortunately, a difficult situation. The owner does have the right to sell his home whenever he chooses, as long as he does what he is supposed to do as far as giving you the proper notice. You didn't say for how long the lease is for. Is it a year or is it month to month?

Take care,

Ray  

Answer
Hi Kelly,

Again, I'm not an expert on lease law, but I can give you a couple of avenues to pursue with an attorney.

First off, there really isn't anyway that you can "force" the landlord to stop the real estate deal from happening just because you have a 1 year lease. Is she in the wrong for doing this? Yes, but there is no agency that will step in on your behalf and make the landlord honor the lease. Now, that isn't to say that you haven't been damaged. This is where you can possibly go after the landlord. I would consider suing the landlord for your damages including moving expenses, the furniture, storage, etc. My only concern is that the landlord will probably say that the lease was not in effect because you never took possession. (Moved in)  Your answer to this would be that you did take possession by being allowed to move in some furniture. This is probably going to come down to some sort of money settlement and not the landlord being forced into honoring the lease.

I'm sorry this happened to you Kelly and I wish you the best of luck with it. You know, you could avoid the whole landlord problem by buying your own place. My wife and I bought our first condo for this very reason. We had a couple of landlords who kept selling our homes out from under us. I've owned ever sense and have never had to deal with it again.

Take care,

Ray