Automatically renewable lease
A lot lease that renews on its own unless properly ended; its renewal provisions may not transfer to a buyer when a home is sold in place.
Published May 31, 2026
An automatically renewable lease is a lot rental agreement that renews on its own for successive terms unless one of the parties properly ends it. Instead of expiring on a set date, it rolls over.
Like a lifetime lease, the renewal feature can be valuable to a resident but may carry transfer restrictions. In some states, the renewal provisions of an automatically renewable lease are not assumable by a buyer who takes over a home in place — unless the agreement provides otherwise or the buyer is the homeowner's spouse. A buyer might still be able to assume the remainder of the current term, but not necessarily the automatic-renewal benefit going forward.
This is why the form of a lease matters when selling. A standard fixed-term lease, a lifetime lease, and an automatically renewable lease can each be treated differently on a sale.
The details depend on state law and the lease itself. This is general information, not legal advice.