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Lease Agreement Change Of Ownership

For buyers of real estate, the decision of course implies that a thorough due diligence must be carried out before the acquisition, especially with regard to the leases that weigh on the object of the sale. In addition, the prudent buyer of an investment property will require a guarantee on the rental index and the validity of the leases on the property. Finally, the buyer who intends to use the property himself receives insurance from the seller as to the absence of leases. If this insurance proves to be incorrect, the buyer can claim his own use of the property and terminate the rental agreement with the tenant at the next legal termination date (s. 261 al. 2 bed a CO). In this case, the buyer is responsible for the damage suffered by the tenant, but should be able to pass it on to the seller on the basis of the insurance received. Another possibility to exclude the possibility of such an offence is to register on the land registry. The tenant has the right to apply for the registration of the lease on the land registry and to allow any subsequent individual owner of the property to use the property, in accordance with the lease agreement.

In the case of such a listing on the land registry, the new owner of the property has no right to terminate the lease, so that the tenant cannot be breached. This is also good news for the sellers, who could have been liable for the damage to the tenant if the lease had not been transferred, since the rented apartment could no longer be made available to the tenant. Other frequent concerns are the potential for rent increases, the status of their deposit, the correct maintenance or condition of their rental unit and the continuation of certain policies, such as. B the admission of pets. Anticipate these concerns and prepare your answers. You lose your credibility and damage your relationship with your residents if you later decide to implement changes that you did not recognize in advance. If you are selling an apartment or house that you previously rented under a rental agreement and you do not have to compensate the tenant for terminating the lease, there are two ways to reduce the risk.