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Real Estate

If a tenant owes back rent when the property sells, who has the right to collect it, the old or new landlord?

TSL Written by the Treadstone Law team· Updated August 2026

The right to collect rent arrears that accrued before closing generally remains with the person who was the landlord during that period, meaning the seller, unless the purchase agreement or closing documents specifically assign that right to the buyer instead. Simply becoming the new owner does not automatically hand you a claim to rent the tenant owed to someone else before you owned the property.

Going forward, you as the new owner are responsible for, and entitled to collect, any rent that accrues after closing under the continuing tenancy. Because this split can create real confusion if it is not addressed directly, buyers and sellers should specify in writing whether existing arrears are being assigned to the buyer as part of the deal, left with the seller to pursue separately, or otherwise accounted for, such as through an adjustment to the purchase price. Leaving this unaddressed is a common source of dispute once a new landlord starts trying to collect on arrears they did not clearly acquire the right to pursue.

Key takeaways

  • Pre-closing rent arrears generally remain the seller's right to collect, not the buyer's, by default.
  • The new owner is responsible for, and entitled to, rent that accrues after closing.
  • This split should be addressed explicitly in the purchase agreement or closing documents.
  • Leaving arrears rights unaddressed is a common source of dispute for a new landlord.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone real estate lawyer can help.
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