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House tenants’ rights when your landlord is selling

•By Addy Whitburn

It’s the news no happy tenant wants to hear: the landlord is selling. 

As with most change, though, it’s a lot less frightening when you know what to expect.

Here are five rules to remember when your landlord decides to sell.

1. The landlord is allowed to sell at any time

In all states and territories, landlords are legally allowed to sell their property whenever they like. But fear not: the law protects tenants from being turfed out on a whim.

2. Your lease is still valid

According to Amy Sanderson, LJ Hooker’s head of property investment management, your current lease (which is also known as a tenancy agreement) remains valid when your landlord puts their property on the market. And it remains so after the sale, which means you don’t have to move out of the property if it changes hands.

“A landlord cannot terminate a fixed-term agreement for the sale of the property,” Sanderson says.

And so if the property is sold to an investor who a tenanted property, it’s possible you will experience very few changes.

However, Sanderson explains that it can also lead to a termination of the lease, if mutual consent is reached.

“If you are on a fixed-term agreement, but you want to move out because the property is being sold, you may be able to end the tenancy agreement early by a mutual consent with the landlord,” she says.

If the new owner wants you to move out, they must comply with the terms of the existing lease.

3. Landlords must give tenants notice before an inspection … and you can be there

The landlord must give the tenants 14 days’ notice before the first viewing.

Meanwhile, Sanderson says tenants “are obliged to make all reasonable efforts to agree on a suitable time and day for the showing” and must also keep the property in a “reasonable state of cleanliness”.

“If an agreement isn’t reached to show the property, the landlord is only able to show the property a maximum of two times per week, and must give the tenant at least 48 hours’ notice each time.”

Renters also have the right to be at the property when it’s opened for inspection.

4. Renters have a say when it comes to photography and signage

The outside of a rental property can be photographed without permission. But if the landlord wishes to take photos inside the property, they must obtain permission from their tenant.

The tenant must also give their consent to signage and on-site auctions.

5. Renters can get compensation

Sanderson explains that landlords sometimes offer their tenant compensation to encourage them to move out of the property as soon as possible.

“In some states, a tenant may give notice, even if they are on a lease, once the property is listed for sale,” she says.

“Many property owners offer tenants a compensation for the inconvenience, and this avoids the complaints.”

Tenants rights in different states

It’s perfectly reasonable to assume that the sale of a property might foreshadow changes for the tenant, but it often doesn’t play out that way.

And that’s because there’s a healthy amount of legislation specifically designed to protect the rights of the tenant in this situation – laws that differ slightly from state to state.

Here’s a location-specific breakdown of the relevant laws.

Australian Capital Territory

  • Landlords must provide tenants a minimum of 24 hours’ notice before showing a prospective buyer around the property. Tenants must grant these buyers “reasonable access to the premise” but can refuse access if they weren’t previously informed of the landlord’s intention to sell.
  • Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
  • If the agreement is periodic, the state’s Residential Tenancies Act states that a landlord can evict you on eight weeks’ notice, if they “genuinely intend to sell the premises”.

New South Wales

  • Landlords must provide tenants two weeks’ written notice before the first inspection, and a minimum of 48 hours’ notice for subsequent inspections, which cannot amount to more than two a week.
  • Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
  • Landlords must also give you 30 days’ notice if they wish to terminate the lease at the end of the tenancy agreement.
  • If the agreement is periodic, a landlord can evict you, as long as they give you 90 days’ notice, or 14 days’ notice if you breach your tenancy agreement

Northern Territory

  • Landlords must provide tenants 24 hours’ notice before an inspection. And, according to the state’s Residential Tenancies Act, they are only allowed to enter the property between 7am and 9am and must be “reasonable about the number of showings sought”.
  • Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
  • Landlords must also give you 14 days’ notice if they wish to terminate the lease on the end date noted in the tenancy agreement.
  • If the agreement is periodic, landlords can evict tenants on 42 days’ notice.

Queensland

  • Landlords must give renters written notice of their intention to sell the property and provide 24 hours’ notice before the first inspection. And they need to provide 24 hours’ notice before any subsequent inspections.
  • Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
  • If the agreement is periodic, landlords can evict tenants on four weeks’ notice, once a contract of sale has been signed.

South Australia

  • Landlords must provide tenants 14 days’ notice before they advertise the property for sale, and “reasonable notice” before each inspection. They must also specify a time between 8am and 8pm, on any day other than a Sunday or public holiday, and cannot conduct more than two viewings every seven days, unless the tenant gives them permission to do so.
  • Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
  • If the agreement is periodic, landlords can evict tenants on 60 days’ written notice if a contract of sale has been signed; on 90 days’ notice, if a contract hasn’t been signed

Tasmania

  • If they have written permission from the tenant, landlords can show prospective buyers around the property at any time; if not, they may only conduct inspections between 8am and 6pm, no more than once a day, and no more than five times a week. They must also provide 48 hours’ written notice before each inspection.
  • Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
  • If the agreement is periodic, landlord can evict tenants on 42 days’ written notice.

Victoria

  • Landlords must provide tenants with 24 hours’ notice before showing around a prospective buyer.
  • Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
  • If the agreement is periodic, landlords can evict tenants on 60 days’ written notice.

  • West Australia

    • Landlords may only conduct inspections between 8am and 6pm on weekdays or between 9am and 5pm on a Saturday, unless the tenant gives them permission to conduct one outside these hours. Before each inspection, landlords must provide “reasonable written notice,” according to the state’s Residential Tenancies Act.
    • Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
    • If the agreement is periodic, and the contract specifically mentions handing over vacant premises, the selling landlord may evict tenants on 30 days’ written notice.
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