Notice to Tenant of Assignment or Transfer of Lease
(Residential) (IL)

Summary

This template for notice to tenant of assignment or transfer of lease may be used by a residential landlord in Illinois to notify a tenant that the landlord has sold the premises, assigned the lease and transferred the security deposit to a new owner/buyer. This template includes practical guidance, drafting notes, and optional clauses. Residential real property landlords located in Illinois must comply with the Landlord and Tenant Act (765 Ill. Comp. Stat. Ann. 705/0.01 to 742/30), which imposes certain rights and responsibilities on the parties. When a landlord sells or transfers an Illinois residential property to a third party, all the tenants should be notified of the transfer, and all security deposits must either be transferred to the buyer or returned to each tenant within five days. See 765 ILCS 710/1.1. In the event of noncompliance with 765 ILCS 710/1.1, a buyer of Illinois residential property is jointly and severally liable with the original landlord to any tenant for a security deposit or prepaid rent which the tenant paid to such landlord. The buyer will want to ensure that the tenants know where and to whom rental payments should be made after the date of the sale. Most buyers of residential investment property will include a provision in the purchase and sale agreement to this effect. Local counsel should be consulted regarding municipal codes in the jurisdiction of the property that may affect the responsibilities of the original landlord and the buyer to notify the tenants regarding the sale of the premises. See Notice to Tenant of Assignment or Transfer of Lease (Residential) (Chicago, IL) for a Chicago notice template. For a full listing of key content covering residential leasing agreements, see Residential Leasing Resource Kit. For more information on rights and duties of residential landlords and tenants in Illinois, see Residential Lease Agreements (IL), Commercial and Residential Eviction (IL), and 13 Midwest Transaction Guide § 432.200.