Buying a Home With a Tenant in Place

Sometimes the right home in Woodforest is currently leased. You can buy it — but the tenant and the lease come into the picture. Here's what to know.

The lease usually continues

A sale generally doesn't end an existing lease. If you plan to live in the home, find out when the lease ends before you commit.

Review the lease

Ask for a copy early. Check:

• End date and renewal terms

• Rent amount and payment history

• Who is responsible for what repairs

• Any special terms or early termination options

Handle the security deposit

Under Texas law, a new owner can become responsible for returning the tenant's security deposit. Make sure it's addressed at closing.

Plan for showings and inspections

Tenants have rights under their lease, including notice before entry. Inspections and the final walkthrough need to be coordinated respectfully.

Investors vs. owner-occupants

If you want a rental, a home with a good tenant in place can be a plus. If you want to move in, timing becomes the main question.

Get legal advice when needed

For questions about your rights and obligations with an existing lease, consult a real estate attorney.

Does a lease end when a house is sold? Generally, no. A sale usually doesn't cancel an existing lease, and the buyer typically takes the property subject to it. Review the lease and ask an attorney about your situation.

What happens to the tenant's security deposit? It should be addressed at closing. Under Texas law, a new owner can become responsible for returning the tenant's deposit.