What Happens When a Lessor Sells a Tenanted Property?
Perhaps, one of the disadvantages of renting is for renters to learn that the property they are living in is being sold off. What if they already love the property? They definitely would not want to let go of it, right? But then again, if the landlord decides to sell it, sadly, there is nothing much they could do about it. However, tenants have to make sure the issue is dealt with legally by being aware of their rights.
Likewise, if you are a landlord looking to sell your tenanted property, you would 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 keeping your lines of communication open.
Know Your Place
In cases where a fixed term agreement is in place, landlords cannot just make a tenant vacate the property. Tenants can stay until the end of the term. If so, the new owner will become their new landlord.
On the other hand, if the tenant decides to vacate and the landlord agrees, there should be a written documentation prepared showing that both parties have signed and have agreed upon an end date to avoid chaos and confusion.
For periodic agreements, however, landlords are required to issue a notice to vacate to their tenants as soon as the sale contracts have been exchanged. For QLD, a 60-day written notice using a Notice to Leave (form 12) is required.
Rules for Showing Buyers Through the Property
Showing a tenanted property to prospective buyers is a sensitive process that requires caution and consideration as you are letting strangers into your tenant’s current home. It is best that you communicate with the tenant ahead of time to arrange a schedule that would be convenient for the both of you. This way, you would not cause more hassle to the tenant than necessary.
Make sure that the tenant is comfortable with allowing prospective buyers access to their home. Ask them if they have any concerns or qualms about the inspection. Let them know that they are free to put away any private items if they wish to protect their privacy. Tenants should be careful not to disrupt or impact the inspection on purpose.
Should any conflict arise during the process, the tenant or landlord can take the matter before their state or territory tribunal for intervention.
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. This notice should be adhered to:
– One open inspection per fortnight, giving at least four days notice.
– Two inspections per week, by appointment only, giving at least 24 hours notice.
It is the right of the tenant to remain on the premise during the inspections. This also applies to open home inspections.
‘For Sale’ Signage
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.
Can the landlord take pictures or a video of the interior of the rented property to assist the sale of the premises?
Yes. Though tenants do have the right to refuse to have their personal belongings videoed or photographed, as the owner of the property, it is the landlord’s right to display their property in the best possible light with the use of nicely taken pictures or videos.
