When a tenant hears that their rental property is up for sale they tend to panic- don’t! Just because the owner is putting the property on the market this doesn’t mean you need to pack your bags! Both you and the owner have rights and it’s important to understand them. Our Head of Property Management, Angie Lester is here to give you a head start, with some basic rules every tenant should know!
YOUR LANDLORD HAS THE RIGHT TO SELL
As the owner, your landlord is within their rights to sell the property whenever they want to, even if it does fall during your fixed lease agreement. But don’t panic! You do have rights.
YOU MUST BE INFORMED BEFORE THE SALES PROCESS BEGINS
Once the owner decides to sell, either the Property Manager or Owner must give you a Notice of lessor’s intention to sell premises (Form 10) which will include how they plan to market the property. Once you find out the property is up for sale it’s a good idea to arrange a time to sit down, discuss the situation and try to come to a mutual agreement with both the Property Manager and Agent.
AT LEAST 24 HOURS NOTICE BEFORE AN OPEN HOME
Most tenants and landlords are able to amicably reach an arrangement for open for inspections that suits both parties, but if there are any issues it’s important to know where you stand legally. As the tenant you must agree to any Open Homes. These Open Homes must be during reasonable times therefore must not be on (unless otherwise agreed to):
- Sundays or Public Holidays
- Any other day before 8am or after 6pm
Either the Property Manager or Landlord must give you at least 24 hours notice before an Open Home. Tip: Make sure you are organised and keep note of when the Opens will be taking place to avoid any unexpected surprises at your front door
WHEN THE HOME SELLS YOUR RENTAL AGREEMENT REMAINS VALID
Once the property is sold, that doesn’t mean you have to pack your bags. If you are on a fixed term agreement, the property manager/owner cannot make you leave because they decide to sell. You can stay until the end of your fixed term, and the new owner will become your property owner. Sometimes a property manager/owner will negotiate with a tenant to end the agreement early and offer some form of compensation.
If you are on a periodic agreement, and the purchaser does not want to continue renting the property (i.e. they want vacant possession of the property), the property manager/owner must give you a Notice to leave (Form 12) or Notice to leave (Form R12) for rooming accommodation, that must allow at least 4 weeks’ notice after the contract of sale is signed.
Angie Lester – Head of Property Management
07 3202 3040
Her passion for property management stems from a love of meeting a diverse range of people and a genuine desire to see people happy in the properties they turn into a home. Angie is a true professional and genuine in all aspects of her job. Her ultimate goal is to be happy and passionate about what she does on a daily basis so it never feels like work.
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