Selling a Tenanted Property
With the new legislative reforms introduced in March 2021, the regulations regarding selling a rented property have been revised, with some important implications for owners. To assist our clients in this process, we have prepared a brief outline of the most relevant considerations.
Listing Notices and Disclosure
If an Owner/Rental Provider already has plans to sell before they enter a lease they must disclose this via a Mandatory Disclosure Form.
If an owner decides to sell after signing a lease, a 'Notice of Intention to Sell' must be served on tenant/renter 14 days (minimum) prior to the first inspection. This must be given in all intended sales, even if you have disclosed that you may sell before the lease was signed.
Once Renters have been served with an 'Notice of Intention to Sell' they may give 14 days notice at any time (even during fixed term), and this will not be considered a lease-break (no cost or penalty applies to the renter for this notice). Whilst this may be rare, it is important for owners to understand the renters’ rights and all relevant possibilities.
All ‘reasonable’ efforts must be made by agents and renters to agree on days and times for inspections (if no agreement is reached, the agent may still serve notice of entry).
Open for Inspections are permitted (unless Domestic/Family Violence issues apply, then private inspections only may be enforced by the tenants/renters).
A Minimum of 48 hours written notice for sales inspections must be given to the renter (plus postage if applicable, otherwise email or text). We suggest setting regular days/times in advance to simplify this process.
Inspections can be no more than 60 minutes in duration, and maximum of twice weekly (unless otherwise agreed) and must be between 8am-6pm on any day except public holidays.