Short answer
Yes. Nothing in the state's Anti-Eviction Act bulletin stops an owner from selling, but the tenant keeps the protections the law gives. A landlord needs good cause and a court judgment to remove a tenant, and the security deposit has to be handed to the new owner. A buyer who wants a vacant house has narrow routes.
The law covers most rentals
The Department of Community Affairs says the Anti-Eviction Act applies to most residential rental properties, including single-family homes, apartment buildings and complexes, mobile homes and rooming houses. It states that no residential landlord may evict or fail to renew a lease, written or oral, without good cause, and that the landlord must prove the grounds in court. A tenant is not required to move until the court enters a judgment for possession. Selling the building is not a general ground for ending the tenancy.
What a sale changes
A sale changes who the landlord is. The Department's security deposit bulletin says that when a property is sold, the former owner must within five days of delivering the deed turn over all security plus the tenant's share of interest to the new owner, and notify the tenant by registered or certified mail of the name and address of the new holder. The new owner is responsible for the deposit and must give the tenant a security deposit notice within 30 days of acquiring the property.
When a buyer wants the unit empty
The bulletin lists specific routes. An owner of a building with three residential units or less may file for eviction if the owner wants to occupy a unit, or has contracted to sell it to a buyer who will personally occupy it and the contract calls for the unit to be vacant at closing. A notice to quit must be served at least two months before filing suit, and no legal action can be taken until the lease expires. Those routes are for owner-occupant buyers, not investors.
Practical steps for a landlord-seller
Gather the leases, the rent ledger and the deposit account information. Give the buyer's attorney copies. Check that the deposit is held as the law requires, since the new owner takes on responsibility for it. Keep paying for repairs the lease makes you responsible for. Ask your attorney to review any plan for the tenant to leave before closing.
Selling with tenants in place
Kaizen Home Buyers makes cash offers on New Jersey houses as-is, with no repairs and no agent commission. We can give an offer within 24 hours and close in 14 to 30 days or on the date you choose. Call 267-329-0084. Listing with an agent is the other option, and an owner-occupant buyer may pay more for a vacant house. An attorney can explain the tradeoffs.