When a property is sold while a lease is in force in North Macedonia, both the new owner and the existing tenant need to understand how their rights and obligations are affected. The law provides clear rules on automatic transfer of the lease, rent collection rights and the tenant’s right to terminate. This page is part of our practice in real estate and construction law. For questions about buying or selling property in North Macedonia, see our guides on real estate transactions and property ownership in North Macedonia.

In a significant number of cases in North Macedonia, the lessor acquired the premises as an investment with the intention of generating income through rent. Consequently, it is reasonable to anticipate that the lessor may sell the real estate to another party at some point during the lease. Likewise, it is not uncommon for a purchaser to acquire real estate that is currently under lease, primarily for the purpose of continuing to collect rent.

Automatic Transfer of Rights Under the Lease Agreement

As per the Law, in the event of the transfer of a previously leased property to another party, the acquirer — the buyer who becomes the new owner — steps into the shoes of the former owner as the lessor. As a result, the rights and obligations stemming from the lease are transferred from the former owner to the buyer, who now acts as the lessor in relation to the lessee.

It is essential for the lessee to understand that the acquirer cannot request the lessee to vacate the property before the agreed-upon lease period concludes, unless the lease duration has been explicitly defined in the contract or by law. In the absence of such stipulations, the request cannot be made before the expiration of the applicable notice period.

The law establishes that the transferor, as the former owner, remains jointly responsible as a guarantor for the obligations of the transferee (the new lessor) towards the tenant.

The New Owner’s Right to Rent

Unless otherwise agreed, the acquirer — the new owner — has the entitlement to collect rent starting from the day immediately following the acquisition of the property. If the former owner received rent in advance, they are obligated to transfer this rent to the new owner. This is particularly relevant because lease agreements commonly involve prepayments covering half or a full year; in such cases, the previous owner owes the new owner the rent from the date of transfer until the date the rent was actually paid.

Disputes can arise during the actual transfer of possession, as the tenant typically holds legal and rightful possession acquired from the former lessor at the time of sale. It is therefore recommended to address this issue through a separate agreement involving all three parties — seller, buyer and tenant — establishing the specific point in time from which the new owner gains the right to receive rent.

The law also provides that once notified of the alienation of the leased property; the lessee may only make rent payments to the new owner.

Termination of the Contract Due to Change of Ownership

The law outlines the tenant’s right to terminate the contract in the event of a change in ownership. When the transfer of a leased property results in the transfer of rights and obligations from the former lessor to the acquirer, the lessee may cancel the contract under any circumstances, provided this is done while adhering to the legal or contractual notice periods, or in the absence of these, the customary notice periods.

Practical Checklist

For buyers purchasing tenanted property, and tenants whose property changes hands, verify the following: (1) Buyers: the lease transfers automatically — you cannot evict the tenant simply because you are the new owner. The existing lease terms remain fully binding until the agreed end date or notice period. (2) Buyers: reclaim advance rent from the seller — if the tenant has already paid rent in advance to the former owner, the seller must transfer that amount to you. Address this explicitly in the sale agreement. (3) Buyers: notify the tenant in writing — once you own the property, formally notify the tenant of the ownership change so that future rent payments are directed to you. (4) Consider a three-party agreement — a short agreement between seller, buyer and tenant avoids disputes about when rent rights transfer and confirms the tenant’s obligations to the new owner. (5) Tenants: you can terminate after ownership changes — if you do not wish to continue the lease with the new owner, you have the right to terminate, subject to the contractual or legal notice period. (6) Tenants: pay rent to the new owner only — once officially notified of the ownership change, pay rent only to the new owner. Paying the former owner after notification does not discharge your obligation. 

Frequently Asked Questions

Does the new owner have to honor the existing lease?

Yes. When a tenanted property is sold, the lease transfers automatically to the new owner. The new owner steps into the former owner’s position as lessor and cannot terminate the lease or demand that the tenant vacate before the agreed end date or notice period.

When does the new owner start receiving rent?

Unless otherwise agreed, the new owner is entitled to rent from the day after the property transfer. If the former owner collected rent in advance for periods after the transfer date, they are legally obligated to pass that amount on to the new owner.

What happens if the tenant pays rent to the old owner after the sale?

Once the tenant has been officially notified of the ownership change, they must direct rent payments to the new owner. Payments made to the former owner after notification do not discharge the tenant’s obligation to the new owner.

Can the tenant terminate the lease when the property is sold?

Yes. When a property is sold and the lease rights transfer to the new owner, the tenant has the right to terminate the contract — regardless of the reason — provided they observe the contractual, legal or customary notice periods.

Is the former owner still liable after the sale?

Yes, in part. The law provides that the former owner remains jointly liable as a guarantor for the new owner’s obligations under the lease towards the tenant. This means the tenant can hold the former owner responsible if the new owner fails to fulfil the lessor’s obligations.

Need legal guidance?

If you have questions about a lease agreement affected by a change of property ownership in North Macedonia, the team at Lalicic & Partners is at your disposal. Contact us through our website.