Tenants’ Rights When Landlord Sells Property in Texas

Can You Sell the Property With Tenants Living There?

As a landlord in Texas, you maintain the right to sell the property at any time during the lease term, even if it is currently tenant-occupied. The real estate contract you have with a buyer does not override the agreement in place with your tenants. Instead, that lease transfers to the new property owner.

This means your tenants will continue living in the home and paying rent until the lease expires, and the buyer takes over as the new landlord. Selling a property while occupied can actually be an advantage, since many investors prefer homes with rental income already in place.

What Happens to a Written Lease When New Ownership Takes Over?

In Texas, a lease agreement doesn’t simply vanish when a new landlord takes over. If you sell the property before the lease ends, the buyer steps into your role as landlord and must honor the existing lease agreement until it expires.

This often makes your property more attractive to investors, since they inherit a tenant who is already paying rent. Unless you and the tenant mutually agree to end the lease early, you, as the seller, must ensure the transfer is seamless and that all obligations are passed on to the new owner at closing.

Can Landlords End a Month-to-Month Lease or Require Tenants to Leave?

If your tenants are on a fixed-term lease, you, as the landlord, cannot terminate it early simply because you want to sell the property. That lease remains valid until the lease agreement expires, and the new landlord must respect it as well. The only exceptions are if your existing tenants breach the lease or if both parties negotiate an early termination.

However, if your tenants are on a month-to-month lease, you or the new owner has more flexibility. In these situations, Texas law allows landlords to provide notice — usually at least 30 days in writing — before requiring tenants to vacate.

What Happens When the Lease Expires After the Rental Property Is Sold?

Once a lease agreement expires, whether it is a fixed lease term or a month-to-month lease, the new owner has options. They can choose to renew the lease, renegotiate the rental terms, or end the tenancy.

As the seller, your obligation is only to honor the existing lease until it expires and disclose all terms to the buyer. After the property is sold, the decision lies with the new landlord, and it’s important to communicate this clearly to tenants before closing.

Tenant’s Rights During House Sale

It’s scary to hear that your landlord is selling the house. However, tenants have rights according to Texas law. A sale does not mean you’ll have to pack up and move at a moment’s notice.

While certain states are rather antagonistic toward tenants, the local laws in Texas ensure that a new landlord needs to show respect to the existing tenants throughout the transition process. Your rights include:

• Receiving the security deposit 
• Getting proper notice before you are asked to vacate
• Staying until the lease ends
• Privacy during the sale
• Staying in the home after a foreclosure

Security Deposit

Typically, the deposit is the first and last month’s rent. You have the right to collect this money from the new owner at the end of the lease. Your old landlord will need to provide you with the new landlord’s contact details and explain how to collect the deposit.

This is typically provided in a written notice called the “Notice of the Intent to Sell a Rental Property,” which will contain the buyer’s details and inform you of your rights.

Reasonable Notice to Vacate the Property

The new owner has legal requirements regarding how and when they can ask you to leave. Sometimes, a lease includes an early termination clause that says that the tenant must leave if the property is sold, but that does not mean you’ll have to pack up on the day after the sale.

The owner must provide you with a 30-day period to arrange your affairs should they decide that they no longer want you as a tenant. Check that your lease does include this clause before you agree to anything. 

Right to Occupy the Property After the Sale

When the owner sells the house, they cannot simply ask you to leave after the sale. Everyone must respect the lease terms, including its end date. However, if the new owner really wants you to leave, they can negotiate with you and pay you a termination buyout. 

Right to Privacy When Showing the Property

According to state laws, tenants have the right to quiet enjoyment of their homes, including when landlords want to show the property to potential buyers. 

Landlords cannot enter your residence without giving proper notice, usually a verbal or written notice issued 24 hours before a buyer will be shown the home. However, there are some circumstances in which landlords can enter without warning, such as if they believe there is an emergency. 

The landlord and tenant can also agree ahead of time about when the landlord can enter without warning, such as to perform necessary repairs. In most cases, a showing would not satisfy this requirement.

You’re not obligated to tidy up the property, and the landlord must schedule showings at reasonable times. You also don’t need to leave while the property is being shown, even though the seller may strongly encourage you to. 

Right to Occupy After Foreclosure

Tenants don’t need to worry if their landlord runs into trouble and the property is foreclosed on. Most of the time, the banks must respect the original terms of the lease and allow tenants to stay on the property, even after they take control. 

However, tenants should ask the owner what the foreclosure means for them and their rights to the property. Don’t hesitate to request further information about what happens to your lease upon foreclosure.

Tenants often worry that they’ll be out of a home when they hear their landlord is selling, but they always have at least 30 days to arrange their affairs as soon as buyers sign the sale agreement. In many cases, there is nothing to worry about — they continue to pay rent, just to a new party.

You always have rights, regardless of who owns the property, and you will almost never have to pack up on day one of a sale if you have fulfilled your obligations as a tenant.

How A-List Properties Can Help You Sell With Tenants

For many Texas landlords, navigating the Texas sale process with tenants can feel complicated. You may be weighing whether to wait until the lease agreement ends, negotiate a relocation fee, or sell it as vacant.

In reality, your property rights allow you to move forward at any stage, and many buyers will gladly continue collecting rent under the original lease.

At A-List Properties, our Texas cash home buyers simplify the decision by purchasing houses directly from landlords—whether tenant-occupied or vacant properties—so you can avoid delays, honor your obligations, and close quickly without the usual headaches.