House is going on auction Feb 2nd, 2012. My landlord has the security deposit. My question is, should I continue paying rent or should I stop? I understand that the new owner has to honor my lease til the end of the terms... Do i need to be on time with my payments in order for the new owner to honor my lease? Do I have a valid lease? since the current owner hasn't been paying since June 2010 and I moved in on July 2011? Help help help.
Real Estate Attorney
I get this question frequently, and, unfortunately without having a copy of your lease, it is difficult to give you an answer. In addition, your statement about the new owner having to honor your lease until its natural end assumes the owner purchases it as an investment; if it is purchased as a residence, you will only be permitted to stay for 3 months. Plus, there are other prerequisites, such as payment of fair market rent under the lease. Please let me know if you'd like to discuss this further.
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I agree with the information provided in the previous answer. If the new owner is not intending to occupy the home as a residence and you do attempt to keep your lease, I recommend verifying all the purchase documents so that you are sure you are paying the actual owner of the property. A "Trustee's Deed" should be granted to the new owner after the Trustee's Sale, and it must be recorded with the County Recorder's Office. The Maricopa County Recorder has a website where you can search for and view the Trustee's Deed. Good Luck
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