What carries over to the buyer
- Leases and tenancies. Selling the building does not end them. The buyer steps in as landlord.
- Security deposits and interest. When a landlord transfers his interest "by sale, assignment, death... or otherwise" he must transfer each deposit with accrued interest, and the successor is liable for keeping and returning it (MGL c.186 s.15B).
- Last month's rent paid in advance. Handled the same way (section 15B(7A)).
- Deposits are the tenant's money. Keep them apart from your own money; section 15B treats them as held for the tenant.
Put the deposit schedule (tenant, amount, where it is held, interest) in front of your closing attorney early.
Showings and access
Section 15B(1)(a) lists showing the unit to a prospective purchaser as one of the few reasons a lease may allow entry without the tenant's permission. The statute does not set a notice period, so read the lease and ask your attorney; giving written notice and keeping to reasonable hours is good practice anyway. Tenants who feel respected usually make showings easier. Some owners offer a small gift or a rent credit for the trouble; ask your attorney how to document it.
Month-to-month tenants (tenancy at will)
With no written lease, a tenancy at will can be ended by written notice of the rental period or 30 days, whichever is longer; 14 days applies for nonpayment (MGL c.186 s.12). Do not send a notice just because you have a buyer. Ending a tenancy has strict steps and real penalties. Ask an attorney.
The state also says you cannot evict or refuse to rent to anyone because of lead paint (Mass.gov).
Sell occupied or empty?
| Occupied | Empty | |
|---|---|---|
| Who it suits | Investors who want the rent from day one | Owner-occupant buyers who want to live in a unit |
| What it asks of you | Rent roll, leases, deposits, cooperation with showings | A lawful way to end tenancies, which may take time |
| Risk | Leases with below-market rent can lower what an investor will pay | Empty units cost carrying money; improper steps to empty them carry penalties |
Do not try to clear the building to improve the price without legal advice. If a tenant leaves on their own and the unit is empty at closing, that is a separate case.
At the closing table
Rent due around the closing date is normally split between buyer and seller on the closing statement, and the deposits move. Your closing attorney prepares this. Ask to see a draft statement a few days before closing. See how to read a seller closing statement.