This is not really a complicated situation. The tenant holds a leasehold estate during the term of the lease. So the property must be sold subject to terms of the lease. Or wait until the lease is up, give the tenant notice, remove the tenant and then list the property vacant.
OR, I suppose the landlord could attempt to buy the tenant out of the lease. That could be pretty pricey for the landlord as opposed to waiting. I have friends in rent controlled rentals in LA with new owners offering them five-figure buyouts to get them gone.

In our area, you can sell subject to the lease, of course, if you can find someone okay with that.  

There is always the option of talking to the tenant to see if they want to vacate and if they are not opposed, offer to pick up the tab for the move or some other kind of incentive. 

The lease stays in place. Make sure the seller discloses the lease immediately. 

This happens routinely when an investor sells to another investor. 

In CAlif, there is a form called tenant in Place addendum. 

In CA the condo would need to be sold with the tenant in it.  Tenant will have the right to stay for the remainder of his/her lease.  If the landlord wants the tenant gone to make the sale more feasible, then their best bet would be to approach them and offer financial incentive to vacate.

Typically in CA we see in the comments "Property is tenant occupied.  Tennant lease is through MONTH/YEAR.  New owner to honor existing lease."

Here in NC & SC, we see that all the time - the property is sold, subject to the terms of the lease and the lease is transferred to the new buyer. Good luck, Praful!

Compensate the tenant for any inconvenience.  

Simple: the new owner needs to honor the lease. I sell tenant occupied properties all the time. You have a smaller buyer pool, but it can be done.

It's not tricky Praful Thakkar when done by the book. Also, you can offer "cash for keys" to the tenant as an incentive to break the lease.

What does the lease say? Does he have a right to show the unit to a prospective purchaser?

He can wait the lease out and prepare the unit for sale. He can offer to pay the tenant for each showing. He can buy the tenant out. The tenant may want to stay and let the landlord show the unit subject to a longer lease term.

There are choices!

Easy peasy.  Sale is subject to the terms and conditions of the lease.  Many investors prefer this.  If the buyer wants to take occupancy, then the tenant should be offered monetary incentive to leave.  The tenant holds the cards, so it's all about what you can negotiate with them.  

the lease runs with the sale.... the listing needs to reflect the fact that the lease exists.... the future buyer owns the lease...

In Texas you can sell your property with tenant.  In other words, the tenant comes with it until the lease expires.  This can be appealing to future investor buyer but will eliminate buyers who want to live in the property.  When does the lease expire?  If it's expiring in a month than seller can choose to wait. I've seen some sellers compensating their tenants to move out so they can sell vacant homes.

Nothing. He sells the tenant & the lease in a bundle to a new landlord OR the lease expires & gets a new buyer.

You can sell with tenant in place, or see if you can work a buyout of the lease, or wish for them to stop paying.

It depends on the landlord laws, rights or statutes in your state as well as what is in the lease.

Sell subject to the current lease. Comply with the lease provisions when showings are planned.

Sell it subject to the lease... or, "cash for keys" to get the tenant out.

You received some great advice in the answers. It depends at which speed and how to sell the unit. For an owner-occupied buyer, seller buys out the lease (tries to), for an investor, there is nothing to do, keep the tenant in, that's what the investor wants...

The seller and tenants can mutually agree to terminate the lease early.  This option would often include a perk to the tenants, such as a credit for a half a month rent after move out.

If the property is sold with the tenants in place, the new owner must accept the terms of the existing lease.

Read the lease to see if situation is covered, it might be. If not, consult an attorney as to what can be done legally. 

Praful Thakkar The only option is to sell the condo while the lease is in effect. The only requirement is the lease stands. Whoever purchases the condo will have to honor the lease.

The lease if it were Oklahoma takes precedence so unless the landlord can buy the tenant off they stay.

Money talks...

You market towards investors and coordinate with the tenant to allow showings.

Praful,

Candice A. Donofrio answered you perfectly!  A

Contract stipulates the lease is transferrable to new owners with deposit going to the seller through escrow. A buyer needs to ractify the old contract.

Thomas J Nelson....has the answer for you

Not quite sure what you are asking... are you asking if he can list the property or sell the property. He can sell subject to an existing lease. He can list pursuant to the terms of the lease agreement.... but at the end of the day, you really need to check the specific leasing agreements and laws in your jurisdiction.

Not complicated and Candice A. Donofrio already explained it for me perfectly. The buyer must clearly know the property is tenant occupied and that he is becoming a landlord at closing unless the tenant leaves by whatever means. The lease withstands the purchase if tenant refuses to exit before closing.

Any sale would be subject to the terms of the lease.

If the landlord is selling to another investor then it would simply be a matter of notifying the tenant of the new owner. The terms of the current lease would apply to the new landlord.

If the buyer is to be an owner occupant.

• They could delay settlement until the current lease has ended.
• The buyer could become a temporary landlord under the terms of the current lease.
• As Candice A. Donofrio mentions an attempt could be made to buy out the tenant.

There are a couple of other options depending on the situation of the lease, buyer, landlord and tenant.

Good Luck  :-Dave

The property would have to be sold with the tenant, and lease in place here in CA. Landlord could try to work out a financial deal with the tenant but that could get expensive. If a good tenant some potential landlords might be happy to purchase the home with the tenant in place, depending.

The new owner must honor the existing lease.

looks like you have several excellent answers, Praful Thakkar 

You have to follow your Tenancy Act. Here where I live there is nothing you can do unless the tenant is willing to work out an agreement with the landlord. Try offering the tenant a month of rent free to move. Here tenants have more rights than the owners!!

Here in SoCal, we see often the property for sale with the tenant, especially if it is an investment property. Tenant has to be notified about the sale 60 days in advance if they want to find another place. Otherwise, a new homeowner takes over the lease till it is over. 

The landlord owns the property.  The buyer purchases it with the lease in place and assumes the responsibility of the tenant - along with the security deposit and any prorations of the current rent.

A common occurrence, here the lease goes to the new owner unless it says otherwise, if they want out of it then they must negotiate with the tenants.

Buy out the lease. Work with tenants to come up with solution. Maybe give tenants 1 month free rent. Help them find another place. If buyer is an investor, they can assume the lease under it's current terms.

Candice A. Donofrio  nailed this one!

If the lease is still active when the building is sold, the new owner needs to honor the lease. And that should be disclosed in the listing.

If the landlord can convince his tenant to leave early, then that could work also. If the tenant is agreeable, the landlord could waive any move-out early penalties, he could pay for the tenants moving costs, he could find them a new place, etc. The important thing is communication! I went to a showing one time of a multi-family home and the tenants had not been told the building was being sold, nor were they told we were coming to see the place. That was awkward.

The owner can offer to buy out the lease or sell it subject to the tenant's lease in place. Either one can work depending on the market demand or cooperation of the tenant.

He can sell the condo, but the new owners must agree to assume the tenant.  He cannot be evicted just because the landlord is selling... at least that is the way it works here.

Pay the tenant to move

I'm not sure about other states, but our contract has a spot for whether it is subject or not subject to a lease.

If the buyer wishes for the tenant to remain, no problem. If not, will the tenant allow a lease buyout? If not, the terms of the lease will need to be honored.

The Landlord is allowed to sell it. However, they have to disclose the existing lease and that it transfers with the sale.

They should also be aware the tenant may not be cooperative with showings or otherwise sabotage the sale.

What do the local rules on landlord tenant dictate?  What are the lease provisions for selling?  Generally speaking, and I do mean generally speaking, I am in agreement with Candice A. Donofrio 

It should be possible with the new buyer assuming the lease.

Check the lease terms and state laws

candice has it pretty right..its not that hard.. possibly also look to selling to the tenant

The buyes need to see all contracts in place

From my limited knowledge I believe the lease continues on to the New Owner -- Tenants have rights.  You cannot remove the agreement with the current owner when the ownership changes.

I do it all the time - selling with the tenants.

Wow, that is great question and something to learn from the answers. 

I hope he knows that the lease goes with the home.

The tenant comes with the deal, transfer the lease and deposit.

Just another point to consider. You should check with your state laws. Here in CA if the the tenant remains in the property even one day after the expiration of the lease they become a month-to-month tenant and the landlord has to give 60 days notice. Hopefully your tenant is at market rate.

First it depends in the lease, i say every lease should have a for sale.sold clause that ends the lease in event of a sale. It should also say that a tenant has to allow showings with a 24 or 48 hour notice. You should note that when selling any home with a tenant and the tenant risks having to move, the tenant oftens does things to wreck any potential sales.