I am renting a condo from a person in Colorado. I have recently signed a 1
year extension on my lease. The condo owner has informed me that he is
selling the property and will declare bankruptcy.
The landlord said that he will sell the condo I am renting as rental
property, but I am concerned about how the lease terms transfer over to

new owner (when sold) and whether the new owner could evict me because
he/she does not want to rent the property.
I have examined the lease agreement, and there is nothing about a sale of
the property. This is the only provision that I am concerned about:
SUBORDINATION - This lease shall be subordinate to all existing and future
mortgages and deeds of trust upon the property.
Questions:
1. Can I enforce the lease if the property is sold to another person (not

evicted by the new owner if they don't want to rent the property)?

2. How should I handle the security deposit, especially since my current
landlord will be declaring bankruptcy?

I am renting a condo from a person in Colorado.

the
be
Subordinate to mortgage liens and deeds of trust isn't the same as
subordinate to a future grant deed. So your lease should be superior to

new owner's grant deed if there is nothing in the lease that says

And don't be quick to assume that the new owner won't like to have a good
tenant. The new owner will be buying the property with knowlege of the
lease, and may be counting on it.
Either of two things will happen, depending on state law. In Californa,
there are laws requiring the old landlord to transfer the security deposit
to the new one, and requiring the new one to assume the obligation to you,
if it is a residential property. I don't know about Colorado law, but it
might be the same.
The other thing that could happen is that the old landlord still owes it

you, and the new one has no ability to get you to make a new deposit,

the lease says something about that.
McGyver

Is the person you are renting the condo from Colorado, or is the condo in
Colorado (or both)?

(BTW, the person wouldn't happen to be named "Ken Smith", would he?)
Theodore A. Kaldis

I am renting a condo from a person in Colorado. I have recently signed a 1
year extension on my lease. The condo owner has informed me that he is
selling the property and will declare bankruptcy.

Mark A wrote:
"Arthur L. Rubin <ronnirubin@sprintmail.com> wrote in message
I have no idea about Colorado law. My recollection is that, in
most cases, with the exception of bankruptcy, leases survive
sales of the property. In bankruptcy, whether or not the
property is sold, the lease CAN be voided.

If the property is sold (and closed) before bankruptcy, I assume that a
bankruptcy of the former owner after the sale would have no effect on the
lease that survived to the new owner (except maybe for the security
deposit). Correct?

Thanks for the info.
I am a little concerned about my landlords bankruptcy and how that
would affect my security deposit ($1300). I guess there are two
scenarios I am concerned about:
1. Landlord sells the property, but does not transfer the security
deposit to new owner and declares bankruptcy.
2. Landlord declares bankruptcy before he sells the property.

Mark A on 30 Oct 2003 suggested:
You might want to remain alert for his filing for Bankruptcy, and
make sure that you get listed as a creditor. I am not familiar with
bankruptcy law, nor Colorado law and nothing in this post should be
considered as legal advice. However, I believe that in most
jurisdictions, Security Deposits are considered to remain the property
of the tenant, held in trust with a security interest by the landlord.
In such cases, if when you see him file for bankruptcy, you notify the
court that you are a creditor, and the type of creditor you are, the
bankruptcy court should return your deposit, in full to you, after a
while. You may of course want to hire a lawyer experienced in Colorado
and Bankruptcy law to assist you.
I found the relevant Colorado statute with regards to security
deposits and sale of rental property. It is Colorado Statute 38-12-103,
and the relevant part is:
(4) Upon cessation of his interest in the dwelling unit, whether
by sale, assignment, death, appointment of a receiver, or otherwise, the
person in possession of the security deposit, including but not limited
to the landlord, his agent, or his executor, shall, within a reasonable
time:
(a) Transfer the funds, or any remainder after lawful deductions
under subsection (1) of this section, to the landlord's successor in
interest and notify the tenant by mail of such transfer and of the
transferee's name and address; or
(b) Return the funds, or any remainder after lawful deductions
under subsection (1) of this section, to the tenant.
(5) Upon compliance with subsection (4) of this section, the person
in possession of the security deposit shall be relieved of further
liability.
(6) Upon receipt of transferred funds under subsection (4) (a) of
this section, the transferee, in relation to such funds, shall be deemed
to have all of the rights and obligations of a landlord holding the
funds as a security deposit.