Illinois Leasing Agent Practice Exam

What happens to a lease if the property is sold during the lease term?

1. The lease is voided

2. The sale does not affect the lease

3. The tenant must move out

4. The new owner can change the lease terms

The correct answer is: The sale does not affect the lease

When a property is sold during the lease term, the lease remains valid and intact, which means that the sale does not affect the lease. The new owner typically steps into the shoes of the previous landlord and is bound by the terms and conditions of the existing lease. This means that the rights and obligations established in the lease agreement are still enforceable, and the tenant can continue to occupy the property under the previously agreed-upon terms. This principle is fundamental to lease agreements, as it ensures stability and predictability for tenants even when ownership of the property changes. It provides protection to tenants, allowing them to continue their residency without the disruption that might come from ownership changes. Typically, any alterations to the lease terms would require mutual consent from both the new owner and the tenant, rather than unilateral decisions made by the new owner.