What Tenants Should Know & Expect During The Sale Of A Home

For many renters selling a home isn't something they need to think about, but what about when your the tenant in a property that is being sold.  Often times it is hard because you are not told what you should expect to have happen and what rights you have.  This blog will help clarify what your responsibility and rights are through-out the process.

Do You Stay Or Do You Go ? 

• If you are currently still in a lease on the property, by law you are allowed to occupy the apartment until the lease expires.  After the housing market crashed, many tenants found themselves paying rent to an owner who did not keep up with payment to the bank leaving the tenant in a home the bank would no longer allow them to live in.  This was the reason legislation was passed to protect tenants from these potential issues.  
• If you are NOT in a lease than you are not legally entitled to stay, which may not be a bad thing.  Once the potential buyer has gone to contract on the home I will normally reach out to the tenant so that both the "soon to be landlord" and tenant can meet.  Just like when you rented the apartment you may decide that it will not be the right fit for you anymore.  This will allow you time to decide without having a closing date looming in front of you.  

Showings & Open Houses:

• These 2 things will have to happen, you should discuss with your landlord having a meeting with all parties including the listing agent to set up a schedule and open communication to make sure that everyone is on the same page.  If you have a specific showing schedule that is established from the very beginning of the process it will make things much more predictable and easier to deal with.  
• Open houses are often a difficult idea for a renter, you are not given much choice on allowing people to go through your home and it may feel a bit like an invasion of privacy.  This is a risk all renters take when they move into a home that is either an investment property or in someone else's home.  That being said, the open communication and scheduling will help ease this tension - some homeowners will decide that they do not want their tenant disturbed with an open house but that is ultimately a discussion that must be decided on between landlord and tenant - the Realtor must abide by your landlord.  

Where Does Your Security Go?

• This is another important reason to meet with the soon to be landlord. If you decide that you will be staying as the tenant than your security deposit will need to be given from your original landlord to your new landlord.  
• If you will be vacating the apartment than your security deposit will legally need to be provided to you by the original landlord. If their was repairs needed than they will need to provide you with the documentation and the remainder of the security - same as if the home was still under their ownership.  

Who Works For Who ? 

• The listing agent works for the landlord, unfortunately the agent must follow the direction of the landlord in regards to showings, open houses and information provided to buyers.  Although you may want the listing agent to do things in a particular way if the agent is being directed by the landlord that is ultimately who they need to follow direction from.  
• If you feel that the process will be too much the agent can work for you as well by helping you to move out of your current location.  Their is no form of dual agency if you will be going into another rental home.  If you have decided to go into a purchase than you can still use the agent but you will want to fill out a Buyer Broker contract to keep all information about the motivation for a quick move confidential from all other sellers.