Which of the following happens when a leased property is sold?

• A. The buyer acquires title subject to the lease.
• B. The lease is cancelled.
• C. The lease expires within thirty days unless renewed.
• D. A new lease is automatically executed.

Answer: (A)

When a property that has a tenant is sold, the buyer takes ownership subject to the existing lease. A lease is a contract tied to the property, so the new owner assumes the role of landlord and must honor the lease terms for the remainder of its term. The tenant continues to occupy under the same rent, duration, and obligations, unless the lease itself provides otherwise or there’s a legal reason to terminate.

This is why the sale doesn’t cancel the lease, doesn’t automatically end it after a short period, and doesn’t automatically create a new lease. The default situation is continuity: the lease runs with the land, and the new owner steps into the landlord’s position.