A tenant does not have to leave before you sell, and in Texas the sale does not cancel the lease. The buyer takes the property with the lease attached to it.
That is usually good news for a landlord who is done. It removes the part most owners dread: giving notice, funding a turnover, and carrying an empty house while it sits on the market.
The lease survives the sale
A written lease runs with the property. When ownership changes, the tenant keeps the same terms, the same rent and the same end date, and the new owner steps into the landlord role.
Month to month works the same way, with whatever notice the agreement requires to end it.
The security deposit moves with the property
Under Property Code section 92.105 the new owner is liable for returning the security deposit from the date title is acquired, and must give the tenant a signed statement saying so and stating the exact dollar amount held.
The previous owner stays liable until the new owner receives the deposit or assumes the duty, which is why the deposit is normally credited to the buyer at closing and listed on the settlement statement.
One exception in the statute: this does not apply to a mortgage lienholder who takes title through foreclosure.
Notice periods, if it ever comes to that
For nonpayment, Property Code section 24.005 requires at least three days written notice to vacate before an eviction suit can be filed, unless the lease sets a different period in writing.
A purchaser at a foreclosure sale has a different obligation and must give a qualifying residential tenant at least 30 days written notice to vacate.
None of this is something you have to run before selling to us. We buy with the tenant in place.
The repairs you have been funding
Deferred maintenance is in the number rather than a reason to reduce it later. Nothing is fixed, cleaned or turned over before closing.
The one inspection is coordinated at a time the tenant agrees to, and you do not need to be there.
More than one house
Each property gets its own page, its own county record and its own number, and they can close on the same day at the same title company.
Rent prorates on the settlement statement, along with taxes.
Written from the statutes themselves: Property Code chapter 92, chapter 24. We are not lawyers and this is not advice about your own case.
