I have a property that is currently being rented out. The lease expires in 2 months time. Four months ago, I put the property up for sale, shortly after, I received an offer which I accepted. Due to the banking crisis, the potential buyer had issues with his loan. Thus, both parties terminated the agreement amicably. Thereafter, I took the property off the market and approached the tenants (via email) asking if they were interested in renewing the lease. I also mentioned that if they weren't I will find new tenants. The new terms and conditions were not discussed. A few days later, the previous buyer interested in the property came back after sorting things out with the bank. The potential buyer and I re-started the S&P agreement. I then immediately emailed the tenants informing that I will not renew the lease and that I will instead sell the property. The tenants are now saying I cannot go back on my word of renewing their lease. and that I must renew their lease otherwise they will take me to court. But I never agreed to renew their lease or discuss the new terms and agreement nor have we signed a new agreement. Is my email to them asking if they wished to renew legally binding? I never agreed to renew the lease, I just asked for their interest. Can they prevent me from selling my property? If I proceed to sell the property and is sold before the expiration of their current lease, can they still take legal actions against me?
Submitted by ashia on Tue, 12/09/2008 - 01:31
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Editor's Response
They cannot prevent you from selling your property. The question is whether they might have a lease that the new owner will have to honor. Massachusetts courts have not been clear on the issue of whether the sale of a building terminates a lease, but some courts have ruled it does. It may be an issue for you if your P & S requires you to deliver the property free of tenants. In that case, you will need to start an eviction process, something that will take several months to finish even if, as your question seems to indicate, your tenants are no more than tenants at will or at sufferance.