A lease agreement is binding on both the tenant and landlord even after one passes away, the estate (executor) of either the landlord or tenant remains bound by the terms and conditions of the lease.
There are some exceptions to the above mentioned statement:
There are certain steps that needs to be followed for different situations:
When someone passes away, an executor will be appointed to handle and deal with their estate, it is the executor’s (as representative of the estate) duty to make sure that
(1) if the deceased person was the only person occupying the property , they give 20 business days notice (under the CPA), pay the penalties and cancel the agreement and
(2) if the deceased’s surviving family still occupy the property, the executor will make rental payments out of the estate, when the estate is wound up, the parties may renegotiate. The lease agreement should include the new parties - this is applicable for when the landlord passes away as well.
Get in touch with us to discuss how we can help you with your challenges