Fixed-term lease
A lease for a specific length, usually 12 months. Rent, terms, and rules are locked in for the term. What happens after depends on the lease and local law.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
A tenant on a fixed-term lease has the right to stay to the end date, and a sale does not change that. Selling a home with eight months on the lease means selling to an investor or waiting.
Part 2 of 4
A simple example
Your rental's tenant has a lease through next April. Listing in September means any buyer takes the home with the tenant until April.
| The situation | What it does to the sale |
|---|---|
| Eight months left on the lease | Investor buyers, or a wait until spring |
| A month-to-month tenant | Notice under state law, then an empty house to show |
| A tenant who agrees to leave early for a payment | Cash for keys, and a broader set of buyers |
The lease outlives the sale. The buyer inherits it, and the buyer's plans have to fit it.
Part 3 of 4
What people get wrong
That a sale clause in the lease lets you end it. Some leases have one; most do not, and state law decides what one can do.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
One piece of your sale. Here is where all the pieces live.
In your room, this word explains itself where it appears.
Keighbor keeps your whole home sale in one place and defines every term like this one right where you meet it, in the step you're on. Free to set up, with or without an agent.