Is a landlord required to notify a tenant of a short sale?

About 2 weeks ago, we received notification of our rental house being sold at auction in about 2 months due to foreclosure. Our landlord notified us, after we contacted them about the foreclosure, that they had sold the house in a short sale. They indicated it was waiting lender approval and would be completed in 60-90 days. Which takes precedence? Is the landlord required to notify us of the short sale?

Asked on July 5, 2012 under Real Estate Law, Washington


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Under the laws of all states in this country, cusotm and practice albeit not necessarily the law, a landlord should advise his or her tenants that the rental they occupy has been sold to a third party in a conventional sale or a short sale. Most importantly, the landlord seller should have tenant estoppel certificates filled out, dated and signed by the tenants to give to the buyer of the property before close of escrow.

As to a foreclosure, a landlord is not required to advise his or her tenants that the unit being rented is about to be foreclosed.

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