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Updated almost 4 years ago on . Most recent reply
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Does tenant's lease always transfer to new landlord / buyer ?
I am selling all my properties this summer and wondering if the new landlord is legally required to honor the terms of my lease or if the buyer can replace the lease with their own? I am thinking they can switch to their own lease... When I turned over my properties in Flint to a property management company, the PM had them all sign new leases. Properties are in Michigan, currently owned by me, a single-member LLC who really doesn't want to get sued after the sale. I am trying to retire peacefully.
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@Cathy Malmrose
TRUTH IN RENTING ACT (EXCERPT)
Act 454 of 1978
554.633 Rental agreement; prohibited provisions or clauses; violation.
Sec. 3.
(1) A rental agreement shall not include a provision that does 1 or more of the following:
...
(l) Provides that a lessor may alter a provision of the rental agreement after its commencement without the written consent of the tenant, or, in the case of a rental agreement between a consumer cooperative that provides housing and a member of the consumer cooperative, without the approval of the board of directors of the cooperative or other appropriate body elected by members who are also tenants of the cooperative, except that an agreement may provide for the following types of adjustments to be made upon written notice of not less than 30 days:
(i) Changes required by federal, state, or local law or rule or regulation.
(ii) Changes in rules relating to the property that are required to protect the physical health, safety, or peaceful enjoyment of tenants and guests.
(iii) Changes in the amount of rental payments to cover additional costs in operating the rental premises incurred by the lessor because of increases in ad valorem property taxes, charges for the electricity, heating fuel, water, or sanitary sewer services consumed at the property, or increases in premiums paid for liability, fire, or worker compensation insurance.
There ya go. Michigan legislative code says a lessor can't change the terms of the lease without the renters written consent. Anything in the lease that says otherwise is unenforceable. Texas' property code is way easier to find than Michigan sheesh. You can read the rest at your leisure
http://www.legislature.mi.gov