What happens to my lease if landlord sells out?

[Number21]

What is the name of your state (only U.S. law)? OR

I lease some light industrial space with a commercial lease. Today I heard from the landlord that the building is supposedly losing money every month and I get the hint she's looking to sell.

What happens if she sells the building I have a lease in? Does the new owner take all the contractual obligations of my lease? Is there any situation where they could make me move even though I have a lease and haven't done anything wrong?

Also, what if the bank has to take the building from her for some reason? Do they have to keep the tennants?

 

[Wyldrush]

Generally a new buyer comes in because there is a tenant in place that hopefully is paying market rent. Just the current LL bought during an over inflated market.

When buying a rental property your current lease will transfer over as well as any deposites you paid.

 

[Number21]

Alright...what if the bank has to forclose for some reason? Would they be required to keep tennants as well?

I'm not really sure what the deal is, she SHOULDN'T be losing any money, she makes a lot of rent and I'm pretty sure she owns the building.

 

[FlyingRon]

Foreclosure would wipe out your lease. Unlike residential properties, there's no federal protection for commercial leases in foreclosure.

 

[Number21]

Hmmm...that is unfortunate. If that was to happen, would I be able to sue her for breaking our contract, the same as she would if I left?

Not that I think that would happen...I'm sure she'd sell the building before letting the bank take it...just curious.

 

[ecmst12]

You could. Whether she'd have any money to pay you with is a different story.

 

[Number21]

Am I correct that my security deposit is at least supposed to be in escrow somewhere?

 

[ecmst12]

What does your lease say about it?

 

[Wyldrush]

very few LL really follow that law. If they are losing the property the funds are usual gone.

 

[ecmst12]

This is a COMMERCIAL lease. There is no law about how security deposits are handled. The LL is only required to do what is spelled out in the lease.

 

[jhsold]

What about any notice to the tenant to move

The question that I have is after the foreclosure has happen, does the new owner required to give notice or can the new owner begin the eviction process within days after the foreclosure sale and take possession. Does the tenant have any rights left. Just curious if the new owner rights are also.