If we never received notice of a change in ownership, is our lease still valid?

We signed a 12 month lease to company X; we make our rent check payable to company X. Our landlord has now starting writing company Y above company X since ownership transferred several months ago.

Asked on November 8, 2012 under Real Estate Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

When a building is sold, the buyer takes it subject to any then-in-force leases; that is, the buyer becomes the new landlord, under  the terms of your exising lease. This rule also applies to other voluntary "non-sale" transfers of ownership, such as if one company owned by someone transfers the building to another company owned in whole or part by that person.

If the building were foreclosed upon by a bank for not paying a mortgage or HELOC, or by a municipality for not paying taxes, and someone bought the building at foreclosure sale, however, then the lease would potentially no longer be in force--it depends on who bought it, for what purpose.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.