Buyer request to remove tenants

What do you need to know?

If the buyer intends to live in the property and has asked you to remove the tenants, it is your responsibility to notify the tenants that their lease is coming to an end. Once your property has sold and you give notice to the tenant to vacate due to sale, you will need to serve them with the Notice to End Tenancy form, also known as an N12.

Note that if a tenant is in the first year of their lease, they have the right to stay in the rental property. If the buyer plans to rent out the property, they have to assume the tenants and the existing lease terms.

Why does it matter to Ownright?

If you have not provided proper notice to current tenants, it may impact the closing date and terms of your sale. You are required to provide tenants with 60 days notice to vacate and if those 60 days overlap with the closing date, the tenant has the right to occupy the property after the ownership transfer. In this case, we will work with the purchasers' lawyers to come up with a solution that will work for both parties but it is likely that the tenants will still be in the property past closing day, which will inconvenience the buyer.