It’s not always welcome news when you are advised that the landlord has made the decision to list their property for sale. It may leave you with many questions, including what happens next?
The property can be sold at any point, irrespective of what stage of tenancy you are in as the landlord’s situation can change over time.
Can the lease be terminated
If you are in a fixed-term agreement for your lease, the landlord cannot terminate you during the period of the lease for a sale of the property.
You may however come to a mutual agreement with the landlord if you decide to move out of the property before the sale where they agree for the fixed term agreement to be terminated without penalty.
If you do decide to leave after the property has been sold, the fixed-term agreement terms will still stand with the new landlord of the property.
Notice for inspections
The property manager and sales agent must provide you with written notice of the intention to sell the property and when it will be listed and marketed for sale.
The sales agent will also need to provide notice for times in which they would like to hold open for inspections at the property and will discuss the possibility of private inspections with you.
Photography and open homes
A sales agent will likely discuss with you the option of taking professional photographs of the property and you will need to provide permission for photos to be taken and used in marketing.
During the open home process, there is a requirement for a tenant to make reasonable efforts to agree on times to allow prospective buyers through and that the property will be kept in a reasonable state of cleanliness.
The sales agent or landlord may offer to help with a cleaner or gardeners and landscapers throughout the sale to ease some of the stress when it comes to expectations through the sales campaign.
What happens after the sale
When an offer has been accepted or the property has been sold at auction, there may be questions as to what happens next.
If you are in a fixed term, the agreement will continue with the new landlord. If you are in a periodic agreement, you may be given the notice to vacate the property for the new Owner or they may decide to keep the property as an investor.
If you have any questions relating to the sale of the property you are renting, chat with one of our property managers who can walk you through what comes next.