The short version
In New Jersey, a sale does not break a lease and neither does a foreclosure: tenants generally stay under the Anti-Eviction Act, and the buyer becomes their landlord. That narrows the realistic buyer pool for occupied property to investors, who buy tenanted buildings routinely and price them on rent and condition. Selling landlords should never pressure tenants out (illegal and liability-creating); provide the lease, rent roll, and security-deposit accounting instead — clean paper raises the price more than an empty unit would.
The law that shapes the sale
New Jersey's Anti-Eviction Act permits removal only for enumerated causes — nonpayment, lease violations, and a short list of others. "I sold the building" is not on the list, and neither is "the building was foreclosed." Your tenants' leases ride through the closing to the new owner. Trying to force tenants out to sell vacant — cutting services, harassment, cash-for-keys presented as an ultimatum — creates liability that will cost more than the vacancy premium ever would.
Who buys occupied buildings
Investors do, all day. A tenanted two-family with paying tenants is an income stream; even a building with a nonpaying tenant has a price, just a lower one that reflects the workout ahead. Retail owner-occupant buyers mostly cannot use an occupied house, which is why occupied sales in default gravitate to cash: investors close fast, take title with tenants in place, and inherit the landlord role at closing.
An occupied sale, illustrated
An illustrative composite: an East Orange landlord five payments behind owns a three-unit with two paying tenants and one vacancy. He gathers the paper an investor prices on — leases, twelve months of rent history, deposit ledger, registration — and requests two investor offers. Both are below what a vacant renovated sale might fetch someday; both are above what the sheriff sale would leave him. He closes in 30 days with tenants undisturbed, the judgment paid, and the deposits properly transferred at closing, which New Jersey law requires.
Doing right by the tenants
Tell tenants the truth early: the building is being sold, their leases continue, their deposits transfer, and the new owner's contact will follow at closing. Tenants who understand their rights (our tenants guide is written for exactly this) are calmer showings, cleaner closings, and a smaller legal risk. Their protection and your sale are not in conflict; the buyer is pricing the whole legal reality anyway.
Walkthroughs in this article are illustrative composites for education, not client stories or testimonials.
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Educational information, not legal or tax advice. Your own court documents control your deadlines; licensed New Jersey professionals can confirm what applies to your case.