Selling a rental does not by itself end a lease or the tenant’s rights. The security deposit must be transferred to the buyer (with notice to the tenant) or returned (Civ. Code § 1950.5, subdivisions (i)–(k)); showings need proper entry notice (Civ. Code § 1954); and a buyer who wants the tenant out must still have a legal ground and notice. For covered tenancies that means a just cause under Civ. Code § 1946.2, not just the fact of the sale.
What happens to the security deposit when I sell?
Civ. Code § 1950.5 says that when the landlord’s interest ends by sale, assignment, death or otherwise, the landlord must within a reasonable time either transfer the deposit (and any remaining portion) to the successor and notify the tenant, or return it with the required accounting. Before a voluntary transfer the seller must give the buyer a written statement of the tenant’s deposit, and the successor in interest is jointly liable if the rules are not followed (subdivisions (i), (j) and (k)). Tell your escrow officer about each deposit.
How do I show the unit to buyers?
Civ. Code § 1954 permits entry to show the unit to prospective buyers, normally with 24 hours’ written notice during normal business hours. See the habitability and repairs guide and the entry notice calculator. The statute has limited circumstances in which oral notice is allowed; read it before relying on them.
Can the buyer end the tenancy?
It depends on whether the tenancy is covered by Civ. Code § 1946.2. For a covered tenancy that has lasted 12 months or more, ending it requires an at-fault or no-fault just cause stated in the notice (for example, the owner or a family member moving in, under § 1946.2(b)(2)), plus relocation assistance of one month’s rent or a one-month rent waiver (§ 1946.2(d)). A separately sellable single-family home or condo owned by someone other than a corporation, REIT or LLC with a corporate member is exempt only if the lease contains the statutory exemption notice (§ 1946.2(e)(8)). Cities may add stricter rules; see the city pages. Cash-for-keys is a common alternative: see the cash-for-keys comparison tool.
Which records and disclosures go to the new owner?
The lease, the deposit statement, repair and habitability records, and the names and addresses for rent payment. Civ. Code § 1962 requires the landlord’s or manager’s name and address to be disclosed to the tenant; update it in writing after the sale so rent goes to the right place.
Frequently asked questions
Does a sale cancel the lease?
No. A sale does not by itself end the tenancy. For covered tenancies, ending it still requires a just cause and notice under Civil Code § 1946.2.
Who is responsible for the deposit after a sale?
The seller must transfer it to the buyer and notify the tenant, or return it. If the rules are not followed, the buyer is jointly liable (Civil Code § 1950.5(i)–(k)).
Which official sources should I read?
- Civ. Code § 1950.5 (security deposits)
- Civ. Code § 1954 (landlord entry)
- Civ. Code § 1946.2 (just cause)
- Civ. Code § 1946.1 (termination notice periods)
- Civ. Code § 1962 (owner and manager disclosure)
This guide is general information about California law as of Nov 13, 2026, and local ordinances may be stricter. Check the linked sources or consult a qualified attorney. Read the disclaimer.
Have a question about your situation, want tips, or need a referral? Email the CLRC team at [email protected]. We share general information, not legal advice, and we’re not a law firm.