Apartment Building Sales – A Tenant’s Perspective

You’ve just moved into the apartment of your dreams– or maybe the best apartment your dreams can afford. Then you get a notice: your apartment is being sold.  What are your rights and responsibilities now that the landlord is changing?  Can you maintain your lease?  What happens to your security deposit?  How long do you have to move out?

My Landlord Has Passed Away, What Happens To My Lease?

A common situation occurs when your landlord passes away and leaves relatives in charge of your building.  The Personal Representative[1] of a landlord may even begin a sale[2] of the property to a third party. Such a sale does not extinguish your rights or any liens on the property. Town of Tisbury v. Hutchinson, 338 Mass. 514 (1959).  Generally, your lease rights must be disposed of before the Personal Representative sells the building, unless the new purchaser takes the apartment title subject to your lease rights. It’s worth remembering that any seller has a duty to disclose your lease to a new purchaser. See MGL c 184 s21.

However, as a lessee you have no right to question the title of your landlord.  Connolly v. Kilcourse, 285 Mass. 398, 399 (1934).

What Happens If Your Landlord Is Alive And Well But Is Still Selling Your Apartment?

Your Security Deposit

The security deposit and/or last month’s rent given by you to your landlord is your money.  Upon sale, the old landlord shall transfer your money to the new landlord .  However, very specific provisions must be followed: the new landlord must notify the tenant within forty-five days from the date of transfer that the security deposit was transferred to the new landlord and that he is holding the security deposit.[3] M.G.L c. 186 s15b (5).  As a practical (though not legal) precaution, you may want to consider trying to recover your security deposit from your old landlord.  This is often the simplest and fastest way to recover your funds.  Also, it is often advisable to write a letter to your landlord demanding the return your security deposit within 30 days time.  This demand letter will help to begin the ticking of certain legal clocks.

Even if your old landlord does not transfer your security deposit to the new landlord (as he is required to do) the new landlord shall “without regard to the nature of the transfer, assume liability for payment of the security deposit to the tenant.”  M.G.L c. 186 s15b (5)(c).  The new landlord may opt to give you free rent in the value equivalent to your security deposit if you are still in the apartment[4].  M.G.L c. 186 s15b (5).

But I Don’t Have A Lease, I’m A Tenant At Will. What Are My Rights?

As a tenant at will, you have no lease and you may have a written or even oral agreement for the rental.  The good news is your tenancy isn’t automatically terminated.  M.G.L. c. 186, § 13.  You may stay according to the provisions of your old arrangement. M.G.L. c.186 s.17.  During a sale, as normally happens with tenants at will, either the landlord or the tenant may terminate the rental arrangement at any time.  All that is required is 30 days written notice or one full rental period, whichever is longer.  No reason is required to terminate an at-will tenancy. If your landlord wants to raise your rent, he must send you a proper legal notice terminating your tenancy, and then make you an offer to remain in the apartment for the increased rent.  Often the rules for subsidized housing are different.