Chapter 3 - § 3.7 • SALE OF THE RENTAL PREMISES

• Jurisdiction: Colorado

§ 3.7 • SALE OF THE RENTAL PREMISES

If the landlord sells the property, the tenant has certain rights. If the lease has been recorded pursuant to C.R.S. § 38-35-109, such recording acts as notice of the lease and tenancy to all persons claiming an interest in the property. See, e.g., Botkin v. Pyle, 14 P.2d 187, 192 (Colo. 1932) (recording was "notice to the world").

However, even if the lease is not recorded, the purchaser can be deemed to have constructive notice of its existence. The leading case of Cohen v. Thomas & Son Transfer Line, Inc., 586 P.2d 39 (Colo. 1978), concluded that "notice" in the context of the recording statute refers to both constructive and actual notice. Prior to their purchase of the property, the buyers were aware of the lessee's tenancy and questioned the lessor about the existence of a lease. The lessor said that the written lease had expired and that the lessee had a month-to-month tenancy. The purchasers did not ask to see the lease, nor did they question the tenant directly. The court concluded that the lessee had exercised its option to renew by remaining in possession and continuing to pay rent after the alleged expiration date. Under...