Thread: Selling Rental Propery

Originally Posted by nickIL

I just received an offer from a work associate on my rental property, located in rural Illinois, however, I was wondering what happens to the tenants, they just signed a one year lease beginning in April and after reading my lease contract, I realize there is no mention of what happens if the property is sold.
I've have heard that the new buyer has to assume the lease as part of the sale, is this true.

Yes, it is true that the new owner will have to honor the lease or buy the tenant out. The only time property transfer does not require the new owner to honor existing leases is in the case of foreclosure and even then the one who purchases it at auction must give 30 day eviction notice.

the new owner should have to let the tenants stay there until the end of the elase, unless they find something they dont like and goes against the rules of the lease

I second the motion on their posts. The new owner should honor the lease or the agreement. It should be discussed before the home is sold.

if it is a rental property and the buyer is buying it for investment than you might ask the tenants to sign a new lease (if you are on good terms with them), or you can assign the existing lease to the purchaser if your lease allows for it. it may be possible to assign the existing lease even if the lease doesn't say anything, but you should check with a local real estate attorney.

on the other hand, if the buyer wants to move in, then you will need to check what your lease says about cancellation (30 days is common), and if it says nothing, then you should check what your states tenants rights are and also check with an attorney.

Is it the right price for the property? Perhaps this is the question that keeps on creeping in people's mind ever since they make up their mind to buy or sell a property. It is quite necessary to spot the right price for making a successful real estate transaction but it is some how difficult . Neither any rule of thumb nor a scientific technique is there to help! So, how to get a good deal? People are advised to believe their own instinct but cautiously. Some things which one should keep in mind to reach the decent levels of property-valuation and deal are:

1. Good quality roads around and within the society add value to the property.
2. Value depends on the profile of the location where the property is situated.
3. Connectivity with bus depot, railway station and airport is equally important from buyer's point of view. In fact, property in vicinity to these facilities makes sound investment proposition.
4. People avoid locations that are closer or are known as riot prone area or communally polarized.
5. Not to mention, green surroundings, civic amenities like safe drinking water, uninterrupted power supply and systematic drainage system are the first preferences of the buyer.
   As valuation of property is a process, all the above discussed factors go hand in hand with perception of quality.For more view- realtydigest.blogspot.com