Short answer
Yes, you can sell, but the tenant's status matters. The Department of Community Affairs says the Anti-Eviction Act may not apply to owner-occupied two or three unit buildings with two or fewer rental units, and that an owner-occupant can end a tenancy after a lease expires with written notice of three months or one month.
When the Act may not apply
The bulletin says the Anti-Eviction Act may not apply to two or three unit owner-occupied premises with two or fewer rental units. It also lists causes specific to owner-occupied two and three family dwellings. A tenant in such a dwelling may be evicted if the landlord shows the tenant is staying after the lease expired and the landlord gave the tenant a written notice for delivery of possession. Which rules apply depends on the exact building, so an attorney should review the facts.
The notice periods
Under that cause, the bulletin says a three-month notice to quit must be given if an at-will or year-to-year tenancy exists, and a one-month notice to quit is required for a month-to-month tenancy. Even so, a landlord who goes to court needs a judgment for possession before the tenant must move, and a warrant for possession cannot issue until three business days after the judgment. Self-help is not allowed.
The deposit rule for small owner-occupied buildings
The security deposit bulletin says the deposit law applies to all rental units except owner-occupied premises with not more than two rental units. A tenant in such a building can invoke the law by giving the landlord 30 days written notice. So a small landlord who thought the law did not apply may find it applies after a letter. Check the deposit handling before you list.
Selling while the tenant is still there
A buyer who plans to live in the building may be willing to buy with the tenant in place, or to wait for the lease to end. Gather the lease, rent history and deposit records for the buyer's attorney. If the tenant stops paying rent, the bulletin says the landlord may take legal action immediately, though a court order is still needed. An attorney can tell you whether to file before or after a sale.
A buyer who accepts tenants
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. A listing with an agent may reach owner-occupant buyers who pay more for a vacant unit, but the tenant must still follow the legal process.