A tenant signs a one-year lease. Four months later the owner sells the property to a third party, who wants to move in immediately. Which of the following is correct?

• A. The new owner may terminate the lease immediately with notice
• B. The new owner takes ownership subject to the lease and must wait until the lease ends to move in
• C. The tenant must vacate immediately
• D. The new owner must honor a new lease agreement

Answer: (B)

When property with an existing lease is sold, the buyer becomes the landlord under that lease and is bound by its terms. The lease runs with the land, so the new owner must honor the current agreement for its remaining duration. In this case, four months have passed of a one-year term, leaving eight months left. The new owner cannot terminate the lease or move in immediately just because ownership changed hands. They must wait until the lease ends or until the tenant and landlord reach an agreement to terminate early (often involving compensation). That’s why the correct outcome is that the new owner takes ownership subject to the lease and must wait until it ends to move in.