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:
- State: Missouri
Answer:
A lease is a contract between you and your tenants. Generally, you cannot terminate the lease just because you want to sell the house, unless the lease specifically allows for that. When a new owner buys the property, they typically inherit the existing lease and must follow its terms. You may negotiate with your tenants for an early termination, but they might expect compensation for leaving early.
A sales contract can include a provision that assigns the current lease to the new owner. If the house is sold and the lease is terminated early without the tenants' fault, they may seek damages for breach of contract.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.