Alabama Landlord Selling the House
Alabama rules on landlord selling the house for renters and landlords, with the statute or official page behind each answer. Last verified: 2026-10-22.
Short answer: When a landlord sells a rental in a good-faith sale, the seller is relieved of liability under the lease and the landlord-tenant act for events that happen after the tenant gets written notice of the sale, unless the parties agreed otherwise. Ala. Code §§ 35-9A-205(a), 35-9A-201(h)
The rules in Alabama
| If the landlord sells the property | When a landlord sells a rental in a good-faith sale, the seller is relieved of liability under the lease and the landlord-tenant act for events that happen after the tenant gets written notice of the sale, unless the parties agreed otherwise. The seller stays liable to the tenant for the security deposit the tenant could recover and for all prepaid rent. Separately, whoever holds the landlord's interest when the tenancy ends is bound by the deposit-return rules. |
|---|---|
| Tenants in foreclosure | No statute protecting tenants in foreclosure was found in the landlord-tenant Act. The disclosure duty in § 35-9A-202 binds any successor landlord or owner. Tenants rely on the federal Protecting Tenants at Foreclosure Act (90-day notice). A full-text search of the official code for 'foreclosure tenant' found no tenant-protection section. |
Related questions
Alabama vs. neighboring states
| State | If the landlord sells the property | Tenants in foreclosure |
|---|---|---|
| Alabama | When a landlord sells a rental in a good-faith sale, the seller is relieved of liability under the lease and the landlord-tenant act for events that happen after the tenant gets written notice of the sale, unless the parties agreed otherwise. The seller stays liable to the tenant for the security deposit the tenant could recover and for all prepaid rent. Separately, whoever holds the landlord's interest when the tenancy ends is bound by the deposit-return rules. Ala. Code §§ 35-9A-205(a), 35-9A-201(h) | No statute protecting tenants in foreclosure was found in the landlord-tenant Act. The disclosure duty in § 35-9A-202 binds any successor landlord or owner. Tenants rely on the federal Protecting Tenants at Foreclosure Act (90-day notice). Ala. Code Title 35, Ch. 9A (checked); § 35-9A-202(b) |
| Florida | When a rental property is sold, the security deposit and any advance rent the landlord is holding, plus any interest earned, must be transferred to the new owner (or new rental agent) with an accounting of what is owed to each tenant. Once the old owner hands over the money and records and gets a written receipt, the old owner is released from the duty to hold the deposit. The law presumes the new owner received the deposit, but that presumption is limited to 1 month's rent. Fla. Stat. § 83.49(7) | Florida's own Protecting Tenants at Foreclosure Act (§ 83.5615) copies the federal PTFA: a 90-day notice to vacate, and bona fide leases are honored to the end of the term unless the buyer will live in the unit. But it takes effect only if the federal PTFA is repealed. Since the federal law is in force, the federal PTFA is what currently applies. No other Florida tenant foreclosure protection was found in ch. 83. Fla. Stat. § 83.5615 (ch. 2020-99) |
| Georgia | According to Georgia's official Landlord-Tenant Handbook, when a rental property is sold the former owner must either transfer the security deposit to the new owner, who then becomes responsible for it, or refund the deposit to the tenant. If the old owner does neither, the tenant can sue to recover the deposit. The handbook also says new owners of an apartment complex are generally bound by existing leases and cannot raise rents or change rules during them. Georgia Landlord-Tenant Handbook (Dept. of Community Affairs, rev. 8-29-24), pp. 13-14 | Not verified yet |
| Mississippi | Mississippi's security deposit law says the deposit is held by the landlord for the tenant and the balance must be returned within 45 days after the tenancy ends; it makes the 'landlord or his transferee' liable for damages for keeping a deposit in violation of the section. The section does not spell out how a deposit must be handed over when the property is sold or what notice the tenant gets. Miss. Code Ann. §89-8-21(2)-(4) | Not verified yet |
| Tennessee | When a landlord sells a rental in good faith to an unrelated buyer, the seller stays responsible under the lease and the landlord-tenant law until the tenant gets written notice of the sale and the security deposit is transferred to the buyer. After both happen, the seller is released for later events, unless the parties agreed otherwise. The statute does not say the sale ends the lease. Tenn. Code Ann. § 66-28-305 | Not verified yet |
City rules that may add to state law
More Alabama rental law
- Alabama Security Deposit Law
- Alabama Eviction Laws
- Alabama Notice to Vacate Rules
- Landlord Entry Rules in Alabama
- Alabama Repairs & Tenant Remedies
- Alabama Rent Increase & Late Fee Laws
- Breaking a Lease in Alabama
- Squatters' Rights in Alabama
- Alabama Rental Fee Rules
- Alabama Section 8, Records & Right to Counsel
- Alabama Mold, Pests, Heat & AC Rules
- Alabama Privacy, Guests & Animal Rules
- Alabama Lockouts, Utility Shutoffs & Retaliation
- Alabama Subletting, Lease Endings & Tenant Death
- All Alabama landlord-tenant rules
- Free legal help in Alabama
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Alabama Landlord Selling the House FAQ
What happens to my lease if my landlord sells the house in Alabama?
When a landlord sells a rental in a good-faith sale, the seller is relieved of liability under the lease and the landlord-tenant act for events that happen after the tenant gets written notice of the sale, unless the parties agreed otherwise. The seller stays liable to the tenant for the security deposit the tenant could recover and for all prepaid rent. Separately, whoever holds the landlord's interest when the tenancy ends is bound by the deposit-return rules. (Ala. Code §§ 35-9A-205(a), 35-9A-201(h))
What are tenants' rights in a foreclosure in Alabama?
No statute protecting tenants in foreclosure was found in the landlord-tenant Act. The disclosure duty in § 35-9A-202 binds any successor landlord or owner. Tenants rely on the federal Protecting Tenants at Foreclosure Act (90-day notice). (Ala. Code Title 35, Ch. 9A (checked); § 35-9A-202(b))
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.