Selling a California Rental With Tenants in Place

In California, selling a rental generally does not end the tenant's lease: the California Department of Real Estate (DRE) advises that tenants with a rental agreement may stay through its end on the same terms, and Civil Code §§ 821 and 1111 support that reading. The just-cause law, Civil Code § 1946.2, contains no cause for selling the property. The practical work is in showings (Civil Code § 1954), transferring the security deposit (§ 1950.5(i)), and making sure the buyer updates the tenant's contact and payment information within 15 days (§ 1962(c)).

The short version

• A sale is not a just cause to end a tenancy under § 1946.2.
• No statute says in so many words that a lease survives a sale, but §§ 821 and 1111 and DRE guidance all point that way. Treat the lease as continuing and confirm details with counsel.
• Showings are a lawful reason to enter, with reasonable written notice (24 hours is presumed reasonable), during normal business hours.
• The seller must either transfer the deposit to the buyer and notify the tenant, or refund it with an accounting (§ 1950.5(i)).
• The buyer must give the tenant updated owner, manager and payment information within 15 days of taking over (§ 1962(c)).

What happens to the lease

The DRE's 2026 California Tenants guide says: "If your landlord voluntarily sells the rental unit that you live in, your legal rights as a tenant are not changed. Tenants who have a rental agreement have the right to remain through the end of the rental agreement under the same terms and conditions." It adds that a new landlord may end a periodic tenancy only if allowed by law, after the required notice, and subject to just cause. The guide describes itself as informational, not legal advice.

Two older statutes support that reading:

• Civil Code § 821. The person who receives the property has "the same remedies" for rent, breach of the lease, waste or forfeiture "as his grantor or devisor might have had."
• Civil Code § 1111. A transfer is effective without the tenant's agreement (no "attornment"), but no tenant who paid rent to the seller before notice of the sale "must suffer any damage thereby."

Because no statute states the rule outright, plan the sale on the basis that the lease continues, and ask counsel about anything unusual.

Step by step: listing to closing

1. Read the lease. Note the end date, rent, deposit and any owner move-in clause.
2. Tell the tenant in writing that the home is for sale. Under § 1954(d)(2), if the tenant was told in writing within the prior 120 days that the property is for sale, later showing appointments may be arranged by oral notice (24 hours is presumed reasonable), and you must leave written evidence of the entry inside the unit.
3. Schedule showings lawfully. Showing the home to purchasers is a permitted entry purpose under § 1954(a). Written notice states the date, approximate time and purpose; 24 hours is presumed reasonable, as is a notice mailed at least six days ahead. Entry is during normal business hours unless the tenant consents at the time. Details are on the landlord entry page.
4. Do not overdo it. Section 1954(e) bars abusing the right of access or using it to harass. A significant and intentional violation of § 1954 aimed at getting a tenant to move out is unlawful under Civil Code § 1940.2(a)(4).
5. Prepare the deposit statement for the buyer. Before a voluntary transfer, § 1950.5(j) requires a written statement to the buyer of the security remaining after lawful deductions, an itemization of those deductions, and whether you will transfer or refund.
6. At closing, transfer or refund the deposit and send the tenant the required notice (next section).
7. Hand over records. Give the buyer the lease, addenda, move-in photos and inspection reports, payment history and any notices served. See keeping rental records.

The security deposit on sale

When the landlord's interest ends "whether by sale, assignment, death, appointment of receiver, or otherwise," Civil Code § 1950.5(i) gives two options, either of which relieves the seller of further liability for the deposit:

A personally delivered notice is signed by the tenant on the seller's copy. If the seller does not comply, the buyer is jointly and severally liable with the seller for repaying the deposit, and may not demand replacement security unless it first refunds or accounts for the old one (§ 1950.5(k)). A buyer who, after inquiry and reasonable investigation, believes in good faith that the deposit was transferred or returned is protected from bad-faith damages. A buyer who receives rent electronically must also return the deposit electronically at the end of the tenancy, unless another method is agreed in writing (§ 1950.5(h)(1)(A)). The security deposits page covers the rest of § 1950.5.

What the buyer must do

• Update the tenant within 15 days. Civil Code § 1962 requires disclosure of the names, phone numbers and addresses of the manager and the person authorized to receive notices, plus who to pay rent to and how. A successor owner or manager must comply within 15 days of taking over (§ 1962(c)).
• Know the cost of missing it. A successor may not serve a three-day pay-or-quit notice, or evict for nonpayment, for rent that accrued while it was out of compliance. The tenant still owes the rent.
• Respect just cause. Where § 1946.2 applies, a buyer who wants the unit back needs a just cause stated in a written notice, like any owner. See just-cause eviction.

Buyers who want to move in

Owner move-in is a no-fault just cause, with strict conditions: who counts as the owner (based on recorded ownership interest), a lease clause or written tenant agreement for leases entered on or after July 1, 2020, relocation assistance, and a notice naming the intended occupant. The statute does not mention buyers. Whether a buyer can serve an owner move-in notice before closing or recording is a question for counsel. See owner move-in terminations.

For month-to-month tenancies, § 1946.1(d) allows a 30-day notice (instead of 60) only if all of these apply: the unit is alienable separate from any other unit; the owner has contracted to sell to a bona fide purchaser and escrow is open with a qualifying escrow holder; the buyer is a natural person; the notice is given within 120 days after escrow opened; no earlier § 1946.1 notice was given; and the buyer in good faith intends to live there at least a full year. How that rule interacts with just cause under § 1946.2 is a question for counsel, so ask before relying on it. The notice period calculator shows the standard periods.

Other sale items

• Estoppel certificates. The statutes on this page do not address residential tenant estoppel certificates. Whether a tenant must sign one depends on the lease; ask counsel.
• Water heater. The seller must certify to the buyer in writing that water heaters are braced, anchored or strapped as Health and Safety Code § 19211 requires.

For owners

• Decide early whether to sell with the tenant in place or wait for the lease to end.
• Give the tenant one written point of contact for showings.
• Keep copies of every entry notice and the deposit notice. If you are a Coronado owner weighing this choice, see rent or sell your Coronado home.

For renters

• Your lease generally stays in place after a sale. Keep paying rent as the lease says until you get notice of the new owner; under Civil Code § 1111, rent paid to the seller before that notice must not cause you harm.
• Showings need reasonable written notice stating the date, approximate time and purpose, or oral notice if you were told in writing within the past 120 days that the home is for sale (§ 1954(d)(2)). Entry is during normal business hours unless you consent at the time.
• After closing, look for the deposit transfer notice and the new owner's contact and payment details.

Local rules

Some cities add rules on top of state law, such as local just-cause, relocation or rental registration requirements, so check your city's code. Coronado has no local rent-control or just-cause ordinance as of October 2026, based on a review of its code's contents.

McKee Properties manages rentals from its Coronado office; contact us with questions about your property.

Frequently asked questions

Does a lease end when a California rental is sold?

Generally no. DRE guidance says tenants with a rental agreement may stay through its end on the same terms, and Civil Code § 821 gives the buyer the seller's remedies under the lease, while § 1111 makes the transfer effective without the tenant's agreement. No statute says in so many words that a lease survives a sale, so confirm unusual situations with counsel.

Can a landlord evict a tenant because the house is being sold?

Not on that ground alone where § 1946.2 applies: the just-cause law has no cause for selling the property. A buyer who wants to live there may use owner move-in only if all of its conditions are met. For month-to-month tenancies, § 1946.1(d) sets a 30-day notice period in some sales, but it does not create a just cause.

How much notice is needed to show a rented home to buyers?

Reasonable written notice stating the date, approximate time and purpose; 24 hours is presumed reasonable (§ 1954). If the tenant was told in writing within the past 120 days that the home is for sale, later showings may be arranged orally, and the owner must leave written evidence of the entry inside.

What happens to my security deposit when the owner sells?

The seller must either transfer it to the buyer and notify you of the transfer, any claims, the amount and the buyer's contact details, or refund it to you with an accounting (§ 1950.5(i)). If the seller does neither, the buyer shares liability for repaying it (§ 1950.5(k)).

This is general information, not legal advice. Laws change; confirm the current text and your situation with a California attorney.

Sources

• Civil Code § 821 (opens in a new tab)
• Civil Code § 1111 (opens in a new tab)
• Civil Code § 1946.2 (opens in a new tab)
• Civil Code § 1946.1 (opens in a new tab)
• Civil Code § 1954 (opens in a new tab)
• Civil Code § 1940.2 (opens in a new tab)
• Civil Code § 1950.5 (opens in a new tab)
• Civil Code § 1962 (opens in a new tab)
• Health and Safety Code § 19211 (opens in a new tab)
• DRE, California Tenants guide, 2026 edition (opens in a new tab)

Verified October 19, 2026.