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.
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Where this comes up: getting ready
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
In your Room, this word explains itself where it appears.
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