I rent an apartment above a commercial spot that has been forclosed on and is being sold in a sherrif’s auction. i was told that legally i still am required to pay the current landlords (the ones who are getting forclosed on) the rent for six months from the date of sale, but that doesn’t make sense to me.. HELP!! What are my rights?
Quick Property Sale
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Usually you are required to pay rent up until the auction. You do not pay them anything after the sale date. You will have to pay that to the new owner. Your living there, so you have to pay. If you have a lease you don’t have to worry about moving out, at least until your lease is up.
Usually the bank or mortgage company that is foreclsoing wants you to stay, so they will keep you happy as soon as they are the new property owners. Or if someone outbids them at the auction, they will want you to stay too.
Whoever told you that you have to pay the old owners is absolutely wrong. Once they sale date hits, you owe them nothing.
Your lease remains intact; the transfer of ownership of the building has no effect on your rights under the lease. However, the question of who gets the rent remains. The six months business impresses me as probably bogus; normally the rights of ownership transfer when the hammer falls at the auction. But the rules may depend on where you are. Best bet: contact the new owner, and seek advice from him. Receipts for rent paid to him on his demand are an absolute defense in any action alleging non-payment of rent.
A completed foreclosue auction CANCELS your lease. It is then NULL AND VOID.
Best thing to do is MOVE on or before the foreclosure auction.