Selling a House With Tenants or Unauthorized Occupants

General information only, not legal advice. For advice about your situation, talk to a licensed New York attorney or a HUD-approved housing counselor.

Know what kind of occupant you have

• A tenant with a lease. The lease generally continues after a sale, and the buyer takes over as landlord.
• A month-to-month tenant. Notice requirements apply for ending the tenancy.
• A family member or former partner who stays without paying. They may still have rights, and removal typically needs a legal process.
• An unauthorized occupant ("squatter"). New York has strict rules. Locking someone out, shutting off utilities or removing belongings yourself can expose you to liability. Removal normally goes through the court (a holdover proceeding), and rules were updated recently, so check with a lawyer.

Don't self-help

Changing locks or cutting utilities without a court order can be illegal in New York, even if the person has no lease.

Options

1. Resolve the occupancy first. A court case or a negotiated move-out ("cash for keys") can clear the house, but it takes time and money.
2. Sell occupied. Many investors buy occupied homes. The price reflects the risk and the time needed to resolve the occupancy.
3. Sell to the tenant or a buyer who will keep them. Possible when the tenant pays well and wants to stay.

Paperwork buyers will ask for

Leases, rent roll, security deposit amounts, and proof of rent payments. Security deposits typically have to be handled correctly at sale.

Rent-regulated buildings

If any units are rent-stabilized, extra rules apply to registration, rent and tenant rights. Ask a qualified professional before selling.

Frequently asked questions

Can I sell a house with a tenant in it?

Yes. The buyer takes it subject to the tenant's rights unless the tenant moves out.

Can I just change the locks on a squatter?

No. In New York you generally need a court process to remove an occupant.

Will a cash buyer buy it occupied?

Many will, with the price reflecting the occupancy.

What happens to the security deposit?

It generally has to be transferred or returned correctly at closing.

Get your cash offer

Use the button at the top of this page to start. It takes about a minute, there is nothing to sign to get an offer, and you can always compare it with listing or with other buyers.

The Key Buyers · 194 Jericho Tpke, Floral Park, NY 11001 · 516-366-2592. This page is general information, not legal or tax advice, and rules change. Every situation is different. Last updated: October 2026.