What happens to rental contract if Lessor dies

[chang]

Question - what happens to an apartment rental contract if the Lessor dies?

At some point in the future, I will become the executor of an estate which includes a condo that is being rented out. Two wonderful tenants have been there for 20 years; I think they have a 2-year lease which they have renewed many times.

But the condo will be sold along with all other real property in accordance with the provisions of the trust.

Do the tenants have the right to stay in the property (effectively delaying the sale) until the end of the lease period?

I expect what will happen is that I will apprise the tenants of developments, and they will begin a search for a new apartment on a mutually-agreed schedule. But I would be interested in knowing what the legalities are.

[chang]

I suppose it is possible that a prospective home buyer may want to buy the property for rental income, and may wish to retain the existing tenants. I could discuss this with the real estate broker. But I would not want to limit the prospective audience to whom the condo is shown, and hence limit the potential selling price.

[Capital]

If the Tenants have a written 2-year lease I can not see how you can oust them before the end of the lease. A lease is a binding contract that gives the tenant rights to the property. You could buy them out of the lease at a negotiated price. You as Executor of the Estate would be taking the property subject to the provisions of the lease. It is possible that the tenants could be your buyer - just a thought. You could also sell the property subject to the lease if you can find a buyer that will do so.