My landlord is saying he is doing a short sale now, asking me to sign a new lease with a lessor payment but a lease

Asked about 2 years ago - Sun City, AZ

that says a potential buyer can come and view the house, do i need to sign this new lease, does him saying he is going to offer a new lease void the contract of the old lease? He sent us a letter saying we can vacate the property at any time, does this letter mean the lease we are currently under is voided?

Attorney answers (3)

  1. Robert H Nagle

    Contributor Level 10

    3

    Lawyers agree

    Answered . In addition to the guidance offered in the preceding response, keep in mind that there are Federal laws in place to protect you and the current lease you have should your landlord end up losing the home in foreclosure, laws that, for the most part, will allow you to continue with your existing lease as-is. I raise this because the law requires that "the tenant not be paying substantially less than fair market value". So, while it would be great to have a lower rent, if it's too low and the landlord's ownership interest is foreclosed, you may end up getting kicked out.

    Accessing this website or receiving an electronic transmission from Nagle Law Group, P.C., or any specific... more
  2. Douglas Garth Edmunds

    Contributor Level 13

    2

    Lawyers agree

    Answered . If the owner is going to do a short sale, it means that they could also find themselves in a foreclosure. Either way, it is never fun living under that kind of uncertainty. The landlord's offer to change the terms of the lease does not immediately void the original lease; your rights are still there. If you choose to vacate, make sure everything is in writing, including how last month's rent and security deposits are going to be handled.

    You can look at this as a negative or a positive. On the down side, you might have real estate agents looking in your closets whether you like it or not, and the house could sell rather quickly. You could find yourself dealing with a new landlord that is less agreeable.

    On the plus side, you can accept and take him up on a month to month contract with a reduced rent. Arguably, they are being kind enough to give you warning of what is coming - you have time to decide that you would rather relocate now then deal with the uncertainty that comes with short sales. I would negotiate for a VERY reduced payment.

    Douglas Edmunds is in the business of helping people and companies file for bankruptcy protection. The bankruptcy... more
  3. C. Andrew Campbell

    Contributor Level 15

    Answered . I agree with the previous answers in that the original lease is valid until a new lease is negotiated and entered, but if the landlord is offering you the opportunity to move now and you want out you can accept that offer. If you enter into a new lease agreement to allow the showing of the property you can get some consideration in the rental rate due to the inconvenience to you but as the previous answer states to have any protection to remain in the home after a foreclosure the rental rate must be a fair market rate (or at least close). I would be concerned about a month to month lease agreement as the new owner after foreclosure could get terminate the tenancy much easier on a month to month agreement, but that is going to be your decision based on what is best for you. Good luck.

    This information is provided for general informational purposes and is not intended as legal advice. An attorney... more

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