Who must honor existing leases when the ownership of a property changes?

When the ownership of a property changes, the new owners must honor existing leases. This obligation stems from the legal principle of "buyer acquires title subject to existing leases." When a property is sold, the new owner essentially steps into the shoes of the previous owner regarding any current leases in effect. This means that rental agreements signed by the previous owner remain valid and enforceable against the new owner, ensuring that tenants continue to have the right to occupy the property under the terms set by their lease.

Tenants are also protected in this scenario, as they are not responsible for informing the new owner about the lease; that responsibility falls to the seller. However, it is primarily the new owners who must adhere to the existing lease agreements and cannot unilaterally terminate or change the terms without proper legal grounds or consent from the tenant. This legal protection for tenants helps maintain stability in rental relationships even in the face of ownership changes, thereby encouraging proper rental practices and safeguarding tenant rights.