Q: I am selling a duplex building. Commercial on the first floor and an apartment on the second. Currently, the apartment has a tenant and the commercial 1st floor does not. I am trying to find a tenant for the first floor. If I sell does the new owner have to keep the tenant in the apartment and also the new tenant that I am looking for for the first floor?
A: The tenant, when selling real estate, becomes like a part of the real estate itself (like the furnace or windows).When the title is conveyed to the new owner, they are to honor the terms & conditions of the rental agreement (or lease) you have entered into with that tenant. One way to stop this is to re-negotiate the agreement prior to closing & transferring title. This might not be an issue if the tenant brings a ‘positive’ (like cash flow & timely payments) to the picture & the buyer wants a tenant.