My Landlord Is Selling the Property. Do I Have to Move?

A “For Sale” sign appears outside a tenant’s building.

Within hours, a familiar question usually follows:

Do I have to move?

In British Columbia, the answer is generally no, not simply because the property is being sold.

The sale of a rental property does not itself end a tenancy. If the property changes hands and no lawful notice ending the tenancy has been given, the purchaser generally becomes the new landlord and the existing tenancy continues on the same terms.

That principle is important for landlords, purchasers and tenants alike.

The landlord is still entitled to sell

A tenant’s right to remain in their home does not prevent an owner from putting the property on the market.

The property can be listed, photographed where appropriate and shown to prospective buyers. But the rental unit remains the tenant’s home during that process. The landlord or realtor must comply with the rules governing entry.

Generally, that means obtaining the tenant’s permission or giving proper written notice at least 24 hours and no more than 30 days before entry, specifying a reasonable purpose, date and time. Entry under a notice must ordinarily occur between 8:00 a.m. and 9:00 p.m., as set out in section 29 of the Act.

The tenant is entitled to be present during a showing, although they do not have to be present. The Province also states that a landlord cannot simply stage an occupied rental unit without the tenant’s consent, although that is the subject of many RTB disputes once a decision to sell a property has been made.

But the tenant cannot simply refuse every showing

The right to quiet enjoyment is not a veto over a legitimate sale. Where proper notice has been given for a reasonable purpose, a tenant generally has to provide access.

That means both sides need some perspective.

Multiple daily showings with little regard for the occupant may interfere with quiet enjoyment. Refusing every properly scheduled showing because selling the home is inconvenient creates a different problem.

Reasonableness matters.

What happens when somebody buys the property?

There are two very different possibilities. The first is straightforward:

The purchaser intends to keep renting it.

In that case, the purchaser becomes the landlord and the tenancy continues. The buyer cannot require the tenant to sign an entirely new lease simply because ownership changed, although the parties can mutually agree to a new agreement if they wish. It should be noted that even then, there are certain restrictions: for example, if a purchaser and a tenant wish to agree to a rent increase that is above the RTB’s permitted amount, you will still need to follow the requirements for a rent increase under the Act, as explained in RTB Policy Guideline 37.

The second situation receives considerably more attention:

The purchaser wants to live there.

Purchaser’s own use

After the conditions of the purchase and sale have been satisfied, a purchaser who genuinely intends to occupy the rental unit, or have a qualifying close family member occupy it, can ask the seller in writing to end the tenancy for purchaser’s occupancy.

The seller must use the RTB’s required process and generate the appropriate Three Month Notice through the RTB web portal.

Alternatively, the purchaser can complete the transaction, become the landlord and then pursue their own landlord-occupancy notice. For current notices, tenants generally have 21 days after receipt to dispute a Three Month Notice for purchaser or landlord occupancy.

“I bought it, so I want it empty” is not enough

The legislation is concerned with actual occupancy.

A purchaser cannot properly use the personal-occupancy provisions merely because vacant properties are easier to renovate, resell or rent at market rates.

Current BC rules generally require the person identified in the notice to actually use the property for the stated residential purpose for at least 12 months following the end of the tenancy. Failure to satisfy the statutory requirements can expose the responsible landlord or purchaser to significant compensation, as outlined in RTB Policy Guideline2A And more specifically explained in Policy Guideline 50.

That protection is important for tenants.

It is equally important for purchasers to understand before they request that a seller issue a notice on their behalf – and this is an area where we see a lot of purchasers receiving incorrect advice or guidance.

The sale is not the eviction

This is the simplest way to remember the rule:

Listing the property does not end the tenancy. Selling the property does not automatically end the tenancy.

A tenancy ends only through one of the mechanisms permitted by law: for tenants, that means a sale sign should not cause immediate panic; for owners, it means vacant possession should never be promised casually.

And for purchasers, whether the property comes with a tenant should be considered before - not after - committing to the transaction.

Whether you are a landlord wanting to sell your tenanted unit, or a purchaser needing the right advice on whether to buy a tenanted property, or a tenant who has been informed that their home is being put up for sale, we recommend reaching out to our office and booking a consultation to discuss your situation to get the right advice.