My landlord is selling: What are my rights?

The Tenants' Union has been receiving a lot of queries from tenants about what their rights are when their landlord wants to sell the property they are renting. This article answers some of the most common queries.

For more detailed information, open the link below.

The landlord’s access

It is a term of every residential tenancy agreement that the landlord, or their agent, or a person authorised by the landlord, can enter the property to show it to prospective purchasers or mortgagees a "reasonable" number of times.

The landlord has to give "reasonable" notice to a tenant each time they want to show the property to a prospective purchaser or mortgagee. The notice does not have to be in writing.

A tenant should give access to the landlord if reasonable notice has been given and access has only been sought a reasonable number of times.

The tenant has the right to be in the property when the landlord is showing it to prospective purchasers or mortgagees.

The tenant’s privacy

It is also a term of every residential tenancy agreement that a landlord will not interfere, or cause or permit any interference, with the reasonable peace, comfort and privacy of the tenant in using the property. This term applies even if the landlord is selling the property and wants to show it to prospective purchasers or mortgagees.

Negotiating times for showing the property

Once a tenant is aware that the landlord is proposing to sell the property then the tenant can write to the landlord to suggest agreed set times during the week when the landlord or real estate agent may arrange to show the property to potential purchasers or mortgagees.

For example, a tenant could suggest that the landlord or agent shows the property on Wednesdays between 5 and 6pm, on Saturdays between 12 and 1pm or at other times by negotiation.

If the tenant and the landlord are unable to agree then either one can apply to the Consumer, Trader and Tenancy Tribunal and ask it to decide.

Dealing with agents

Sometimes a landlord appoint a real estate agent to manage the rental property for them. However, when selling a property, it is common for them to appoint more than one real estate agent to make the sale. The tenant may not have dealt with these other agents.

However, just because a real estate agent is trying to sell the property (other than the agent the tenant usually deals with about renting), does not mean that they can do what they want. They are acting for the landlord and so they are bound by the same laws as the landlord.

On-site auctions

A landlord cannot hold an auction on the property unless the tenant agrees.

Can the landlord terminate the tenancy?

If a tenant is still in the fixed term of their agreement, the landlord cannot give them a notice of termination because the property has been sold.

If a tenant is in a continuing agreement (i.e. the fixed term has expired), the landlord can give the tenant a notice of termination because the property has been sold. However, they can only do this if contracts for the sale have been exchanged between the landlord and the purchaser and those contracts require that the purchaser gets vacant possession.

If a landlord does give a notice of termination because the property is being sold, it must be in writing and give at least 30 days notice from the date the tenant receives the notice. If the notice is posted to the tenant, the landlord must allow an extra 4 working days for delivery.

What happens after the property is sold?

If a tenant has a fixed-term agreement and it is for a total period of 3 years or less, then the purchaser buys the property subject to that agreement. The purchaser becomes the landlord once the date for settlement has passed. They then have all of the rights and responsibilities of the landlord.

If a tenant is in a continuing agreement (i.e. the fixed term has expired), and the tenant is still in possession of the property at the date for settlement, then the purchaser buys the property subject to that agreement. The purchaser becomes the landlord once the date for settlement has passed. The purchaser then has all of the rights and responsibilities of the landlord.

Once the property is sold, the landlord should write to the tenant telling them the name of the purchaser and from what date to pay rent to the purchaser.

A tenant does not have to sign a new agreement with the purchaser if they do not want to.

June 2009 

The information in this factsheet:
• is intended as guide to the law and should not be used as a substitute for legal advice
• applies to people who live in, or are affected by, the law as it applies in New South Wales, Australia.
Produced by Tenants’ Union of NSW and NSW Tenants Advice and Advocacy Services.
© Tenants' Union of NSW.