Can a property management company enforce a rental contract on a property that is being sold?

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Can a property management company enforce a rental contract on a property that is being sold?

My niece and her family rented a house through a property management company. The contract is up in 7 months. Somehow they found out that the owner of the house also has a contract with the property management company but it ends 6 months before my niece’s contract is up. The owner of the property plans to sell the property and does not plan to renew the contract with the property management company. My niece really wants to gt out of the contract with the property management company. What is the best way to proceed?

Asked on April 2, 2018 under Real Estate Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Selling a house does not end a lease: the seller can only sell what he owns (i.e. can only transfer those rights that he has), and what he owns is a house with a lease and a tenant. The buyer buys the home subject to the lease, and the lease remains in effect for the remainder of its duration. So your neice cannot get out of her lease early.


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