When a landlord decides to sell their property, tenants often wonder whether their tenancy is in jeopardy. However, under the Residential Tenancy Act (RTA), landlords can’t evict tenants simply because they want to list the property for sale.
The rules and regulations can be tricky to navigate, so CBM Lawyers has broken down the key things tenants and landlords need to know about their rights and responsibilities when selling their property—along with answers to some common questions.
Can a Landlord Evict a Tenant to List a Property for Sale?
No. A landlord might believe that an empty unit will attract buyers more easily, but wanting to list the property without tenants is not a valid reason to end a tenancy. The RTA makes it clear that tenants have the right to remain in the unit during the sale process unless specific legal conditions are met.
What Happens When a Landlord Lists the Property?
Here is what tenants and landlords need to know when the property has been listed on the market:
Tenancy Continues as Normal
Even if the property is for sale, the existing tenancy agreement remains in effect. The landlord cannot issue an eviction notice just because they intend to sell.Right to Peace and Quiet
During the selling process, tenants are entitled to maintain their legal right to quiet enjoyment of the property. Landlords or real estate agents can only enter the unit with proper written notice or the tenant’s permission. This applies to:Showing the unit to prospective buyers
Hosting open houses
What Happens When the Property is Sold?
Once the property is sold, the new owner automatically becomes the tenant’s new landlord. The original tenancy agreement continues to apply unless both parties agree to create a new one.
If neither the buyer nor the seller gives proper notice to end the tenancy, the tenant remains under the terms of the original tenancy agreement.
When Can a Buyer End the Tenancy?
There are certain scenarios where a buyer purchases the property with the intent to live in the rental unit or to have a close family member live in the unit. In these cases, the RTA outlines the requirements that need to be satisfied to end the tenancy either before or after the sale is complete:
Before the Sale is Complete:
There is an agreement in place for the sale of the rental unit.
All conditions on which the sale depends have been satisfied.
The buyer submits a written request to the seller (the current landlord) to end the tenancy stating that they, or a close family member, intend to occupy the rental unit.
The seller (current landlord) gives the tenant a three-month notice to end tenancy (Form RTB-32P).
After the Sale is Complete:
Once the buyer becomes the new landlord, they can serve a four-month notice to end tenancy (Form RTB-32L) if they or a close family member intend to occupy the unit.
Defining “Occupation” Under the RTA
While there may be confusion when it comes to the definition of ‘occupation,’ the Residential Tenancy Act has it outlined clearly. It specifies that a landlord or buyer must intend to use the unit for residential purposes to issue a valid eviction notice.
“Occupation” means the unit will be used as a residential space, either by:
The buyer as part of their living space
Their close family member (e.g., parent, child, or spouse)
It is important to note that siblings or extended family members (e.g., a brother, sister, or cousin) do not qualify as “close family” for the purposes of moving into the unit.
At the end of the day, selling a property does not automatically mean tenants will lose their home. Landlords and buyers must follow strict procedures when attempting to end a tenancy for occupational purposes. Tenants have legal rights to remain in the unit throughout the sale process and, in many cases, even after the sale is complete. Understanding these rules ensures that both landlords and tenants are protected under the Residential Tenancy Act.
If you are a tenant facing eviction or a landlord planning to sell, it’s essential to stay informed about your rights and responsibilities.
Contact us today and receive legal advice to help you navigate these situations smoothly.
