Buying or selling a home with a tenant in it: what happens to the lease, the deposit and the rent after the notary

More and more homes come onto the market with a tenant living in them. For an investor that can be an advantage — the property earns from day one. For a buyer who wants to move in, it can be a problem. Either way the question is the same: what happens to the lease when the owner changes?

The short answer: a sale does not, by itself, end the lease. Whether and for how long the new owner is bound depends on how the lease was made. Below are the rule, what to check, and what to put in the contracts.

This is general information, verified as of October 2026. For a specific deal, have a lawyer read the actual lease.

The rule: Art. 237 of the Obligations and Contracts Act

The law distinguishes three situations:

• The lease is entered in the Property Register. It then remains binding on the buyer until the end of the agreed term. Leases for a term longer than one year can be registered. The new owner cannot terminate such a lease simply because they bought the property.
• The lease is not registered but has a certain date before the sale (for example, notarised signatures). It binds the buyer for the agreed term, but no longer than one year from the transfer.
• The lease has neither registration nor a certain date. The tenant's protection is weakest here. That does not mean the buyer can remove the tenant on their own — any dispute goes to court, and self-help is not an option.

Two related rules:

• If the lease has no fixed term, either party can end it with one month's notice (Art. 238).
• If the term has expired but the tenant stays on with the landlord's knowledge and without objection, the lease is treated as continuing for an indefinite term (Art. 236). Many "expired" leases are in fact open-ended.

By law a lease cannot be made for more than ten years (Art. 229).

If you are buying: what to check before paying a deposit

On top of the usual legal checks before buying, for a tenanted home ask for and check:

• The lease and every annex — term, rent, notice, termination conditions, right to sublet.
• Whether it is registered — a search on the property's file in the Property Register.
• Whether it has a certain date — notarised signatures or another means that provides one.
• The deposit — amount, who holds it, and on what terms it is returned.
• Arrears — does the tenant pay on time; are there unpaid electricity, water, heating or building-association bills?
• Whose name the utility accounts are in and who is registered at the address.
• The condition of the home — view it in person, not just from photos; the tenant must be told about the viewing.

If you want to move in, the key question is when the home will actually be vacated — and that must be in writing, not a verbal promise.

What to agree with the seller

The preliminary contract is where the practical questions are settled. See also our guide to deposits and preliminary contracts. For a tenanted home, add:

1. Sold with the tenant, or with vacant possession. If vacant — by what date, and what happens if it is not vacated: postponement of the final contract, a penalty, or part of the price held back until the home is free.

2. The deposit. The law does not expressly say what happens to the tenant's deposit on a sale. If the lease continues with the buyer, the buyer will have to return the deposit when the lease ends — so it is fair for the seller to hand the money over or for it to be deducted from the price. Put it in writing.

3. Rent for the month of sale. Agree who receives the rent up to the date of the deed and who after it, and how utility bills are split.

4. Notifying the tenant. Ideally seller and buyer notify the tenant together and in writing — from what date and to which account the rent is to be paid. A tenant who has paid the old owner in good faith before learning of the sale should not have to pay twice.

5. The handover. Keys, a condition report, meter readings — as with any handover (see handing over the home and transferring the utility accounts), but with the tenant involved.

If you are selling: empty or with the tenant

An empty home usually sells more easily to buyers looking for a place to live — and they are most of the market. If the lease is open-ended, the notice is one month; if it is fixed-term, check the early-termination clauses and start the conversation with the tenant in good time. An agreement to move out by a reasonable date is often faster than a dispute.

With the tenant, the home will mainly interest investors. They will want to see the lease, the payment history and the actual rent. A well-run tenancy with a reliable tenant can support the price; a difficult tenant does the opposite.

A few practical notes:

• Viewings. If you plan to sell, include in the lease a right of access for viewings with notice. Without such a clause you depend on the tenant's goodwill.
• Tax on the rent is due on rent received up to the sale — see our guide to tax on letting.
• The tenant has no right of first refusal. The law gives that right to co-owners (Art. 33 of the Property Act), not to tenants. Offering the home to the tenant first is your choice, not an obligation.

If you are the tenant

A sale is not a ground for eviction. Keep paying the rent — to the old owner until you are notified of the change in writing, and to the new owner after that. If your lease is registered, it runs to the end of its term; if not, the one-year rule and the notice periods above determine how long you have. More on your rights in our tenant's guide.

When the tenant will not leave

If the lease has been lawfully ended and the home is not vacated, the route is through the courts — not a changed lock or a cut-off power supply. The steps are in our guide for landlords. That is why a buyer who intends to live in the home should not pay the full price before it is vacated, or before there is a clear guarantee that it will be.

In short

A lease "follows" the property according to how it was made: a registered lease runs to the end of its term, a lease with a certain date for up to a year after the sale, and an open-ended lease ends with one month's notice. The buyer should read the lease before paying a deposit; seller and buyer should agree the deposit, the rent and the vacating date in writing.

If you are buying or selling a home with a tenant and want the contracts in order before the notary, call us or come into the office. We will go through the lease and tell you exactly what you are buying.

Verified as of October 2026. This is general information and not a substitute for legal advice on a specific case.