What must the new owner honor concerning existing properties?

The correct answer is that the new owner must honor existing leases. When a property is sold, the terms of any existing leases remain legally binding. This means that the new owner steps into the previous owner's shoes regarding tenant agreements, which protect the rights of tenants who have signed leases before the sale. These leases outline the terms of the rental relationship, including rent amounts, duration, and any specific clauses, and they remain in effect even after the property changes hands.

On the other hand, personal agreements with tenants typically do not carry over in the same way as formal lease agreements. Future agreements are not applicable because the new owner is required to adhere only to existing contracts at the time of the purchase. Renovation plans that were discussed prior to the sale might not pertain to the legal obligations of the new owner unless they were formalized as part of an existing lease or separate agreement. Therefore, honoring existing leases is crucial for maintaining tenant rights and ensuring a smooth transition in property ownership.