Weighing the Benefits and Drawbacks of a Lease Termination Option Upon Sale in Florida
Should you include a clause that allows you to terminate the lease early if the property is sold?
Florida law generally requires existing leases to be honored after a sale, so including an early termination option comes with both strategic advantages and legal trade-offs. Understanding the implications helps you decide whether it's right for your property and peace of mind.
The Basics: What Florida Law Requires
Under Florida’s Residential Landlord-Tenant Act, lease agreements are binding and “run with the land.” This means if you sell the property, the buyer must honor the terms of the existing lease—whether it’s fixed-term or month-to-month.
However, Florida does allow landlords and tenants to include a sale-triggered termination clause in the lease. If clearly written and mutually agreed upon, this clause enables the landlord to end the lease early upon selling the home—provided the appropriate notice is given.
Pros of Adding a Lease Termination Clause for Sale
Flexibility When Selling
The clause gives you the ability to list and close on a sale without waiting for the lease to expire, especially helpful in fast-changing markets.Tenant Expectations Are Set
If this clause is part of the lease, tenants are aware from the beginning that early termination could occur due to a sale.Florida Law Supports It—If Clearly Written
Including this type of clause is legally acceptable under Florida law as long as it’s clearly outlined and notice periods are followed.
Cons of Adding a Lease Termination Clause for Sale
May Discourage Tenant Stability
Some tenants may hesitate to rent a property that could be sold out from under them, especially if they value long-term housing.Could Hurt Buyer Appeal
Some real estate investors want rental income in place. A clause that allows tenant termination may make the property less attractive to them.Notice Requirements Must Be Precise
Florida law requires 15 days’ written notice to terminate a month-to-month lease. For fixed-term leases, notice and terms must be specified exactly in the clause—or disputes could arise.
Final Takeaway
Including a lease termination clause tied to the sale of the property can offer flexibility—but it’s not without risks. In Florida, existing leases continue with the sale unless this clause is in place. Even then, careful legal wording and notice timing are essential to avoid complications.
At CrossView Property Management in Jacksonville, FL, we guide property owners through these kinds of decisions—balancing legal compliance with smart rental strategy.
We would love the opportunity to talk to you.
If you’re considering selling a tenant-occupied rental or planning your next lease structure, let’s talk. CrossView Property Management is here to help you protect your investment and stay ahead of Florida’s evolving rental laws.
