Notice to vacate due to sale of property: tenant and landlord rights when rental property is being sold

It’s the news no happy tenant wants to hear: the landlord is selling. 

With vacancy rates at record lows, making it harder and harder to find rental houses, a notice to vacate can be a stress-inducing situation.

As with most change, though, it’s a lot less frightening when you know what to expect.

Here are five rules to remember when your landlord decides to sell.

1. The landlord is allowed to sell at any time

In all states and territories, landlords are legally allowed to sell their property whenever they like. But this doesn’t change the status of your existing lease if you’re on a fixed-term agreement.

In some states, like Victoria, if a landlord is already planning to sell before you enter into a fixed term lease, then they must tell you.

2. Your lease is still valid

Your current lease remains valid when your landlord puts their property on the market. And it remains so after the sale, which means you don’t automatically have to move out of the property if it changes hands.

“A landlord cannot terminate a fixed-term agreement for the sale of the property,” explained Amy Sanderson, LJ Hooker’s head of property investment management.

The tightening rental market is being felt across the country, with low vacancy rates, high demand and rising rents leaving many tenants feeling frustrated. Here’s our latest coverage on the crisis being felt around the country.

And so if the property is sold to an investor who a tenanted property, it’s possible you will experience very few changes.

However, Sanderson explained that it can also lead to a termination of the lease, if mutual consent is reached.

“If you are on a fixed-term agreement, but you want to move out because the property is being sold, you may be able to end the tenancy agreement early by a mutual consent with the landlord,” she says.

If the new owner wants you to move out, they must comply with the terms of the existing lease.

3. The tenancy provider must give tenants notice before an inspection and they can be present

The landlord must give the tenants 14 days’ notice before the first viewing and it must take place during reasonable hours.

Meanwhile, Sanderson says tenants “are obliged to make all reasonable efforts to agree on a suitable time and day for the showing” and must also get the property ready for the inspection by making sure it’s in a “reasonable state of cleanliness”.

“If an agreement isn’t reached to show the property, the landlord is only able to show the property a maximum of two times per week, and must give the tenant at least 48 hours’ notice each time.”

Renters also have the right to be at the property when it’s opened for inspection.

The landlord must give the tenants 14 days’ notice before the first viewing. Picture: Getty

4. Renters have a say when it comes to photography and signage

The outside of a rental property can be photographed without permission. But if the landlord wishes to take photos inside the property, they must obtain permission from their tenant and give reasonable notice.

The tenant must also give their consent to signage and on-site auctions.

The tenant can deny permission for any photography that identifies them personally in some states.

5. Renters can get compensation

Rental providers sometimes offer their tenant compensation to encourage them to move out of the property as soon as possible.

In some states there is now a default amount of compensation, for example in Victoria tenants are awarded half a day’s rent or $30 (whichever is greater) for each inspection that takes place.

“In some states, a tenant may give notice, even if they are on a lease, once the property is listed for sale,” explained Ms Sanderson.

“Many property owners offer tenants a compensation for the inconvenience, and this avoids the complaints.”

6. Can you deny a home inspection during a lockdown?

No, in general terms you cannot. However, due to the pandemic most states have introduced health guidelines still to be met if an agent or landlord request to bring people through you home during this time.

For specific guidance, check you the current public health order and guidelines in your state.

7. Can repairs and maintenance be carried out during the pandemic?

Yes, repairs and maintenance can be carries out during the pandemic. The landlord, agent or authorised person can still carry out repairs during this time, they will, however, need to ensure they follow the local health guidelines in your area.

Tenants’ rights in different states

It’s perfectly reasonable to assume that the sale of a property might foreshadow changes for the tenant, but it often doesn’t play out that way.

And that’s because there’s a healthy amount of legislation specifically designed to protect the rights of the tenant in this situation – laws that differ slightly from state to state.

Here’s a location-specific breakdown of the relevant laws.

Australian Capital Territory

• Landlords must provide tenants a minimum of 24 hours’ notice before showing a prospective buyer around the property. Tenants must grant these buyers “reasonable access to the premise” but can refuse access if they weren’t previously informed of the landlord’s intention to sell.
• Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
• If the agreement is periodic, the state’s Residential Tenancies Act states that a landlord can evict you on eight weeks’ notice, if they “genuinely intend to sell the premises”.

New South Wales

• Landlords must provide tenants two weeks’ written notice before the first inspection, and a minimum of 48 hours’ notice for subsequent inspections, which cannot amount to more than two a week.
• Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
• Landlords must also give you 30 days’ notice if they wish to terminate the lease at the end of the tenancy agreement.
• If the agreement is periodic, a landlord can evict you, as long as they give you 90 days’ notice, or 14 days’ notice if you breach your tenancy agreement.

Northern Territory

• Landlords must provide tenants 24 hours’ notice before an inspection. And, according to the state’s Residential Tenancies Act, they are only allowed to enter the property between 7am and 9am and must be “reasonable about the number of showings sought”.
• Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
• Landlords must also give you 14 days’ notice if they wish to terminate the lease on the end date noted in the tenancy agreement.
• If the agreement is periodic, landlords can evict tenants on 42 days’ notice.

Queensland

• Landlords must give renters written notice of their intention to sell the property and provide 24 hours’ notice before the first inspection. And they need to provide 24 hours’ notice before any subsequent inspections.
• Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
• If the agreement is periodic, landlords can evict tenants on four weeks’ notice, once a contract of sale has been signed.

South Australia

• Landlords must provide tenants 14 days’ notice before they advertise the property for sale, and “reasonable notice” before each inspection. They must also specify a time between 8am and 8pm, on any day other than a Sunday or public holiday, and cannot conduct more than two viewings every seven days, unless the tenant gives them permission to do so.
• Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
• If the agreement is periodic, landlords can evict tenants on 60 days’ written notice if a contract of sale has been signed; on 90 days’ notice, if a contract hasn’t been signed.

Tasmania

• If they have written permission from the tenant, landlords can show prospective buyers around the property at any time; if not, they may only conduct inspections between 8am and 6pm, no more than once a day, and no more than five times a week. They must also provide 48 hours’ written notice before each inspection.
• Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
• If the agreement is periodic, landlord can evict tenants on 42 days’ written notice.

Victoria

• Landlords must provide tenants with 24 hours’ notice before showing around a prospective buyer.
• Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
• If the agreement is periodic, landlords can evict tenants on 60 days’ written notice.
• Rental providers must compensate renters for each sales inspection – either half a day’s rent or $30, whichever is more. Read more about landlord’s rights and responsibilities on the Victorian Consumer Affairs website.

Even if your landlord is selling the property, they can’t evict you without giving the proper notice. Picture: realestate.com.au/rent

West Australia

• Landlords may only conduct inspections between 8am and 6pm on weekdays or between 9am and 5pm on a Saturday, unless the tenant gives them permission to conduct one outside these hours. Before each inspection, landlords must provide “reasonable written notice,” according to the state’s Residential Tenancies Act.
• Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
• If the agreement is periodic, and the contract specifically mentions handing over vacant premises, the selling landlord may evict tenants on 30 days’ written notice.

source: rea.com.au