Posted by IB (NJ) on June 10, 2010 at 21:59:45:
Most real estate laws are state by state. Here in NJ, you would have to honor those leases unless there was a subordination clause in the lease indicating otherwise.
Honoring previous leases entered into by seller - Posted by Ken
Posted by Ken on June 09, 2010 at 23:26:55:
When I buy a house from a seller and they already have active leases with tenants for the rest of the year–do I have to honor those leases? Or is this a State by State law?
Thanks
Happy Investing!!
Re: Honoring previous leases entered - Posted by Frank Chin
Posted by Frank Chin on June 14, 2010 at 09:58:04:
I bought and sold properties with tenants in place, and tenants stay in place in every case. We don’t have anything in the standard printed leases voiding it if the properties change hands in the standard part of the lease, nor had we made it part of our addendum.
The only subordination clause is if the bank forecloses, the lease is voided. This subordination clause is voided by state law in NJ.