Property Management

A New Mexico property owner wants to sell a property that is currently occupied by a tenant. The property manager should advise the owner that:

AThe tenant must vacate immediately
BThe buyer typically must honor the existing lease, and the sale does not terminate the tenancy — proper notice and coordination are essential✓ Correct
CThe tenant has no rights once the property is listed
DNMREC prohibits selling occupied properties

Explanation

Sale of a property does not terminate an existing lease — the new owner steps into the seller's position as landlord. The tenant has the right to continue occupying under the lease terms. Disclosure to buyers and proper tenant notification are essential.

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