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FACTS:                    

The buyer closed escrow on a single-family residence that was leased to a tenant.  Upon closing, the tenant refused to vacate the premises insisting instead that the buyer was obligated to honor the seven months remaining on the lease term. 

ISSUE:                      

Was the tenancy terminated upon the sale of the property to the buyer?

ANSWER:                

No. 

DISCUSSION:         

A buyer acquires title subject to tenants in possession.  Neal v Hunt, 112 Ariz. 307, 541 P. 2d 559(1975); See also Martinesi vs. Tidmore, 158 Ariz. 53, 760 P. 2d 1102, (App. 1988). (Purchaser of real property takes title “subject to” existing option agreement.)  In other words, a tenancy is not terminated in connection with a traditional sale of real property.  The buyer is therefore legally obligated to honor the lease as written.  Here, provided that the tenant meets his/her obligations under the lease, the tenant is entitled to occupy property for the seven months remaining on the lease term.