Discover the ultimate guide to selling your tenant-occupied house in New York, featuring expert tips, strategies, and local insights for a successful sale. Selling a property with a tenant is legally permissible.We've created a free sample letter you can use (no email optin required) to notify your tenants on your intent to sell the property. As a landlord, it's vital to understand all your sitting tenants' rights before selling a house. Most standard real estate sale contracts contain a clause requiring that the property be conveyed vacant and free of tenants. In New York, tenants have a range of legal protections that must be respected when you're preparing to sell a property they're occupying. The simple answer is yes, you can sell a property with a tenant still living in it. If you sell your property, your tenant still has the right to live in the house under the original lease terms. Yes, you can sell a rental property that is occupied. The new owner has to honor the length of the original lease created between the seller and tenant.