If you are a Landlord looking to sell your tenanted property, you definitely want the entire process to be as easy and as hassle-free as possible. This can only be achieved if you coordinate with your tenant accordingly and keep your lines of communication open.
In cases where a fixed-term agreement is in place, tenants can stay until the end of the term. If the property is sold before the term is complete, the new property owner will become their new Landlord.
The tenant may decide to vacate once they know you plan to sell. If you agree to the lease being terminated, you need to ensure written documentation is prepared, showing that both parties have signed and have agreed upon a mutual termination date.
In the case of periodic agreements where the new owner does not want tenants at the property, Landlords are required to issue a notice to tenants as soon as the sale contracts have been exchanged.
For Queensland, a 30-day written notice using a Notice to Leave (Form 12) is required. If the new owners decide to continue renting out the property to the current tenants, a new tenancy agreement is best practice.
When showing the tenanted home to prospective buyers, communicate with the tenant ahead of time to arrange a schedule that would be convenient for the both of you. Make sure that the tenant is comfortable with allowing this access to their home. In Queensland, once a property goes on the market for sale, a Notice of Lessor’s Intention to Sell Premises (Form 10) is to be issued to the tenant if you request entry to show the property to prospective buyers.
In Queensland, putting a ‘For Sale’ sign in front of the property is allowed. In case the tenant is not comfortable with having the sign, they must inform the landlord about it. Landlords may want to take pictures or a video of the interior of the rented property to assist the sale of the premises. In this case, it is best to consult the tenants and have an agreement put in writing.
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