Final answer:
The lease remains binding on the new owner when a building is sold. The new owner assumes the responsibilities of the previous owner regarding the lease terms unless there is a specific clause that ends the tenancy upon the sale of the property.
Step-by-step explanation:
If Jeff sells the building that is leased to Craig, the status of the lease is generally binding on the new owner. The transfer of property ownership does not typically terminate a lease or rental agreement that is in place.
This means that when a building is sold, the new owner takes on the responsibilities of the previous owner, including the terms and conditions of existing leases.
Unless the lease contains a clause that provides for termination on the sale of the property or another specific agreement is in place to end the tenancy upon sale, Craig's lease remains in effect until it expires or is terminated by a mutual agreement or accordance with the lease terms.
In the text provided, it explains that a lease can be terminated by either party with a 30-day written notice, but this process is separate from the sale of the property itself.
Therefore, the correct answer is that the lease is binding on the new owner.