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Top 3 Tenants’ Rights You Need To Know When Your Landlord is Selling

If you would like to know all of the tenants’ rights when a property is listed for sale, then you have come to the right place. In this article, we answer the top three questions most tenants ask when they receive notice that their home is on the market.

Erica Swannell is one of Calibre Real Estate’s newest team members. As an experienced Real Estate Sales Agent, Erica has had numerous dealings with tenants when selling real estate. “It’s important to remember that whilst the property is on the market, it is still the tenants’ home. So being respectful of their time and personal possessions is essential. I always try to work together with a tenant when planning Open Homes, to find a mutually convenient time-slot.  For example, if they take their son to sport on Saturday mornings, we’ll schedule the Open Home then. I just treat people the way that I would like to be treated.”

When the property sells, your tenancy agreement doesn’t automatically end. The purchaser takes on any agreement in place prior to taking ownership.

We reveal the 3 Tenants’ Rights You Need To Know When Your Home Is For Sale

1.Tenants’ rights while the property is for sale

  • The property manager/owner must give the tenant a Notice of lessor’s intention to sell premises (Form 10), which includes how they plan to market the property
  • If the selling agent is different from the property manager, the selling agent must give the property manager a copy of each Entry notice before entering the property
  • An open house or on-site auction can only be held if the tenant agrees in writing
  • The property manager/owner must ensure the tenant has quiet enjoyment of the property

If the property is advertised for sale or the property manager/owner enters to show the property to a prospective buyer during the first 2 months of an agreement (including a new agreement), and the tenant was not given written notice of the proposed sale before entering into the agreement, the tenant can end the agreement by giving a Notice of intention to leave (Form 13) with 2 weeks’ notice. The tenant must give the property manager/owner the notice within 2 months and 2 weeks of the start of the tenancy.


2.Tenants’ rights during Open Homes & Property Viewings

Open homes occur when a property is on the market. Whether it be for sale, or rent it allows prospective buyers/tenants to view the property during a specific advertised period. Tenants need to agree, in writing, in order for an open home to occur. Some tenants may agree to an open house to avoid multiple individual entries. Photos used to market the property (e.g. on the ‘for sale/rent’ signs or the internet) should not show the tenant’s possessions unless they agree in writing.

If the tenant agrees to an open house, the property manager/owner should negotiate a suitable time. The property manager/owner should try to minimise any disruption to the tenant’s quiet enjoyment of the property.

Entry must be at a reasonable time and, unless the tenant agrees, must not be on:

  • Sundays or public holidays
  • any other day before 8am or after 6pm

The property manager/owner must also give the tenant an Entry notice (Form 9) giving at least 24 hours’ notice of the open house. A reasonable time must have passed before another open house can be held. For all other viewings, an entry notice must be given for each entry. Entry must be at a reasonable time and, unless the tenant agrees, must not be on Sundays or public holidays, or any other day before 8am or after 6pm.

 

3.When the Property Sells, Here Are The Tenants’ Rights

When the property sells, a letter must be given to the tenant advising them of the new property owner. The letter should include the new owner’s details and instructions on where to pay rent. A Change of property manager/owner (Form 5) is given to the RTA for the bond.

When the property sells, these are the Tenants’ rights when on a fixed term agreement.
The property manager/owner cannot make them leave because they decide to sell. The tenant can stay until the end of their fixed term, and the new owner will become their property owner. Sometimes a property manager/owner will negotiate with a tenant to end the agreement early and offer some form of compensation.

When the property sells, these are the Tenants’ rights when on a periodic agreement.
If the tenant is 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 the tenant 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.

 

For further information about your rights as a tenant and buying your first home :

Thanks to Erica for her expert knowledge. If you have a property you are considering putting on the market, please feel free to contact Erica for her professional advice.

Tenants Rights


Erica Swannell

Calibre Real Estate Sales Consultant
0407 471 529
erica.swannell@calibrerealestate.com.au

 

 

We hope this answers all of your questions about tenants’ rights when a property is for sale.

 

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