Your Rights When
Your Building Has Been Sold

Sellers & Buyers of Apartments Buildings Must Now Tell Tenants of Their Rights
Legislation passed in 2008 now requires the seller and buyer of a multi-unit building to disclose to tenants (in writing) tenants rights information generally informing tenants that they can not be evicted, have their rent increased or have the terms of their tenancy changed just because the building is being sold or has sold. Click here for a copy of the law.

When your apartment building has been sold, the new landlord "steps into the shoes" of your old landlord. You can not be automatically evicted or given a rent increase or lose any of your previous rights. Beware, though, many landlords try to use the sale or foreclosure of a building to intimidate tenants.

Your New Landlord Is Different In Name Only
When a new landlord becomes owner of a property, they "step into the shoes" of the old landlord. This means that all agreements (such as written & oral month-to-month or lease agreements) you made with the old landlord are binding on the new landlord. Similarly, the new landlord is bound to any legal orders or judgments: if the Department of Building Inspection ordered the old landlord to make repairs, the new landlord must make those repairs; if the Rent Board has ordered rents reduced, the new landlord must follow this order.

In a nutshell, nothing changes legally when a new landlord takes over.

What Can I Expect With A New Owner?
Nothing could change or things could get better or things could get worse. It is hard to say and it depends largely on who the buyer is, the size of the building, and the condition of the building. Too often tenants panic when the for sale sign goes up, imagining Ellis evictions and OMI evictions and other horror stories. Too often tenants move out just because the building is up for sale—which is exactly what landlords want since the more vacant units there are in the building the higher the price the landlord can get. Noted below are some of the issues tenants may face, but most tenants won't face these issues: of the thousands of larger buildings sold last year, only 122 buildings had capital improvement rent increases and of the thousands of smaller buildings sold, there were just 130 buildings Ellised. Keeping that in mind, here are some basics in terms of what may happen:

–Buildings Over 6 Units: These buildings can not be converted to condominiums and thus a new owner will not be doing an Ellis or OMI eviction. The biggest danger is likely to be capital improvement rent increases or harassment e.g., (landlords trying to get tenants to sign new, more restrictive rental agreements, or taking away services; often the harassment is aimed at longer-term tenants paying affordable rents).

–2-6 Unit Buildings: These can be converted to condominiums and are where Ellis and OMI evictions will occur. These evictions tend to occur in gentrifying neighborhoods.

What Is An "Estoppel Agreement?"
Should I Sign It?
A new landlord often gives tenants an "estoppel agreement" to sign. The landlord is seeking information in this "estoppel" to verify information the old landlord has provided and to tie your down to what you understand your rental agreement means.

You do not have to fill out or sign this agreement (unless your rental agreement provides that you must fill out any estoppel agreements or similar requests)–it is for the landlord's convenience. Any statements you agree to (explicitly or through omission) may come back to haunt you later. For example, if you had an oral agreement to use the backyard and you fail to include this in your estoppel, you may lose that right. Note, though, that if the landlord questions whether or not you are a "protected tenant" for purposes of OMI evictions (i.e., a senior or disabled or catastrophically ill tenant), you must answer this in order to assert your protected status later).

Do I Have To Sign A New Rental Agreement?
Many new landlords try to force tenants to sign a new rental agreement. You do not have to sign a new agreement which is any different from your current agreement!! Only if your landlord offers you the exact same agreement which you now have could you be forced to sign it.

What If A Bank Forecloses?
Even if the new landlord is a bank which has foreclosed or even if the it is the government which has ended up with the building, all of the above is true. Often, though, banks will try to intimidate tenants and will even send eviction notices based on the fact that a bank has foreclosed on the property–that is not a just cause for eviction!

Can I Be Evicted or Have My Rent Increased?
NO. A new owner can not evict you or raise your rent, except as allowed by Rent Control. By virtue of being a new owner, the new landlord can not evict you.

 

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