Learning that your landlord is planning to sell your rental property may be upsetting. Your mind may immediately begin to think of all the things that could happen with this (showings, people going into your house, etc.), and how much time do you have before you are forced to leave?
However, just because your landlord has decided to sell your rental unit doesn’t mean that your lease automatically ends. Continue reading below to learn more about options and actions to take based on your own choices and the laws of Maryland.
What are Tenant Rights When a Landlord Decides to Sell
Understanding your rights before the “for-sale” sign is posted on your property will definitely impact how you proceed. Once the sale takes place, it doesn’t terminate your lease; however, there are some clearly defined limits that exist within Maryland laws regarding your space, as well as your agreement with your landlord.
Notice Requirements
In Montgomery County, your landlord is required to provide you with written notice of a pending sale within five (5) days after closing the sale with tenants still in the property. Your landlord will be sending this notification by mail, posting it in public areas, and filing it with the county.
You are entitled to learn from whom to make rental payments, as well as which person or entity has control over your security deposits upon transfer of title. You can confirm with your landlords if they have a written notice of intent to sell before inspections.
Privacy Considerations
As a tenant, you have a reasonable expectation of privacy in your personal living quarters. Your landlord(s) are required by Maryland State Law to provide at least twenty-four (24) hour written notice prior to making an entry into your unit for viewing purposes, inspection, or maintenance; with the exception of emergency situations such as a fire or significant water leak. Continued invasion of your personal space for any other reason than those above would be considered to violate your quiet enjoyment.
Lease Transfers
A sale will not end or cancel your current lease. The Maryland statute states that all fixed-term leases are binding on the buyer as well as the seller; therefore, the buyer is obligated to comply with those agreements for the remaining term of the lease. Your rental payments, your security deposits, and your options regarding renewals under the original agreement remain in effect.
Tenant Options When the Rental Property Is Being Sold
The direction in which you go is up to your personal objectives and lease requirements. There are several different alternatives you have other than just getting a moving truck and hoping for the best.
Here are three viable options that will give you some options.
Stay Until Your Lease Ends
Regardless of who owns your home now (the bank or someone else), you’re still bound by your rental agreement with the previous landlord. You’ll be able to keep renting at the same rate until your lease expires.
This option gives you an opportunity to take things easy and make plans for what comes after this. In the meantime, continue sending your rent check to your prior landlord. As soon as they inform you in writing where to send your rent, do so.
Negotiate for Early Lease Termination
Landlords and/or buyers are often interested in the property being empty. This will give you an advantage as well as negotiating power.
Negotiate a “cash for keys” agreement; ask that the landlord provide money to help with your move, that they return all or some of your security deposit, and waive the penalty due to the early vacancy. Prior to handing the landlord the keys, ensure all terms of the agreement are in writing.
Bay Property Management Group Montgomery County MD can help make the transition less stressful for tenants as they can act as a neutral point of contact if needed.
Buy the Property Yourself
If you like the house and you have enough money, inquire from your landlord if he is willing to sell it to you. Purchasing a home directly from a landlord will avoid paying real estate commissions, which may result in a lower sale price.
Maryland has first-time home buyer programs and down payment assistance. Buying the rental property will eliminate any uncertainty associated with showing the rental property to other potential renters and when there is a change in ownership.
Conclusion
You don’t necessarily have to be stressed when a property is for sale. Once again, your lease will remain in effect; you will still enjoy your right to privacy as before; and you will have several alternatives at your disposal depending upon your wishes regarding your stay or exit.
You should document all communications, and you can also use a neutral third-party (i.e., the property manager) to facilitate communication with either party while the sale of the property is being processed.
This way, you will be able to navigate this change on your own terms using clearly defined rights and an organized plan.
