You have been living and renting an awesome home and everything is going great. However, your current landlords decides they want to sell off the house!
Do you have to move when a landlord sells? Selling property to a new owner can be complicated but you may not have to move at all. It could just be an exchange of the property.
Here are some details you need to know when your landlord sells off their property.
1. My Landlord Is Selling The House I rent, Without Telling Me.
This may happen to some tenants and it puts them in a tricky situation. Always remember to ask the right questions when your landlord does tell you they are going to sell the house.
- When will the property be transferred to the new owner?
- This is important cause that would mean if you are still able to rent the home from the new owner, you will need a new tenancy agreement.
- How long do you have to move out of the home if they do not intent to rent it out?
- In cases that you will not be able to rent the home anymore, you need some time to move out. A tenants rights need to still be upheld and the current landlord will need to give a formal letter stating the date the tenant needs to vacate the premises. Usually tenants are given 30 days but depends on the tenancy agreement signed.
- What happens to the tenants deposit?
- Make sure that the home is as the day you moved in. Tenants who need to vacate the home before the end of the tenancy agreement, should be given back their deposits provided they did not damage the property during their stay.
2. What About My Rights?
Tenants’ rights will still be upheld during the time of transition as per the tenancy agreement. However, after the property is transferred to a new owner, the tenant will need to make a new agreement.
This I because the initial agreement will be considered void once the home belongs to a new landlord. Any problems faced during the time the house is being sold should be accountable by the first landlord because the home is under their name.
Once the home is 100% under the new landlords name, the tenant will need to follow up with the new landlord for any problems.
It all depends on the day the property is transferred to the new landlord. If the current landlord will not be able to transfer the property for another 3 months, the current rules apply.
Once it changes ownership does the journey of re-doing the tenancy agreement happen. Provided the new owner still wants to rent the home. If not you will need to move out of the house once the grace period given to vacate runs out.
4. Will The Current Landlord Be Responsible For Any Issues With The Property?
Yes, until the transfer of the home is completed, it should be the current landlord’s responsibility. They will need to sort out the issue before the home is given to the new owner. If it is not sorted out you have the right to voice the issue.
If the current landlord needs to make minor renovations before handing over the house, keep in mind the tenant still have rights to.
For example if the renovations goes on till late in the night and it is disturbing your peace, you can let them know. If it is violating your rights you can also ask a lawyer the best way to go about.
Always be calm when facing a sticky situation and try to meet half way, like allowing it to be done when you are away at work or during the weekends at certain house.
5. What Happens To My Tenancy Agreement?
Tenancy agreements are only valid between the people who sign it together. If the landlord signed it with you for a 1 year tenancy but sells the house before its duration, it is void.
A new tenancy agreement will need to be crafted for the new landlord if they are still renting it to you. If not, the previous tenancy agreement cannot safeguard you from being asked to leave.
Unless there is a term that says the future owners will have to uphold the agreement in the circumstance the home gets sold. However, such terms are rare, it could be added in if requested by the tenant and agreed by the landlord.