What happens to an existing lease if the owner sells their property without a specific clause addressing the situation?

When a property is sold, the existing leases tied to that property remain intact and are legally binding, even if the new owner does not explicitly agree to the lease terms. This principle is rooted in the concept of "privity of estate," where the new owner assumes the rights and responsibilities of the previous owner. Therefore, the new owner must honor the existing lease agreements, including the terms and conditions set forth within those leases. This means that the tenant retains their rights to occupy the property under the previously agreed-upon terms until the lease naturally expires or is otherwise terminated according to its provisions.

This understanding is crucial for both property owners and tenants, as it provides stability for tenants who may be concerned about their rights in the event of a property sale. It ensures that they are not suddenly forced to vacate their homes or renegotiated without their consent. The other choices do not accurately reflect the legal framework surrounding residential leases and property sales.