What Happens to the Current Lease if I Sell the Property in Missouri?

Full question:

We as landlords recently entered into a two year lease/rental contract of our house. It had been on the market for about a year and a half as we have not been able to sell it. After only leasing the house now for 3 weeks, a very serious couple has approached us 'again' now wanting to purchase our house. My question is: What are we permitted to do and not do regarding a Sales contract, considering we have the Lease Contract currently for two years? The couple leasing it love the house and has also expressed an interest in wanting to purchase the home after they settle some in the area. We would like to give leasing couple the 'right of first refusal' to buy the house if interested. If not, can we require the other couple, as part of the home sales contract, to honor the remaining time on the two-year Lease Contract? Or, are we handcuffed to not sell our house until the two year Lease/rental Contract is up?

• Category: Landlord Tenant
• Subcategory: Lease Termination
• Date: 04/07/2025
• State: Missouri

Answer:

A lease is a contract between the landlord and tenant. The lease generally may not be terminated solely upon the sale of the premises unless the lease so provides. Generally, when a new landlord enters, the lease is assigned to the new owner, and they are bound by the terms of the lease already in existence.

In some cases, a landlord may negotiate with the tenants for an early termination when the new owner doesn't wish the tenants to remain. The tenants will typically want to receive some form of compensation for the early termination.

Sales contracts are a matter of arms length negotiation. A sales contract may include a provision assigning the current lease to the new owner. If the house is sold and the lease is terminated early due to no fault of the tenants, the tenants may seek damages for breach of contract.