Tenants Rights- When the Landlord decides to sell

When a landlord decides to sell a rented home, tenants in New South Wales are protected by specific rules. These rules determine how and when the landlord or agent may enter the property, how much notice must be given, and what options the tenant has if they wish to leave.

Before the property can be shown to potential buyers, the landlord or agent must provide written notice at least two weeks in advance. After this, they must try to agree with the tenant on suitable inspection times and give at least 48 hours’ notice before each visit. Tenants do not have to agree to more than two inspections per week. Access is restricted to certain hours, and no one may enter on Sundays or public holidays without the tenant’s consent.

Open-house inspections are not specifically addressed in the law. While many agents treat them as normal practice, tenant advocates argue that they allow people who are not genuine buyers to enter the home. Tenants may request that inspections be limited to registered prospective purchasers.

If the landlord intends to end the tenancy because of a sale, they must provide evidence of the sale or proposed sale, such as part of a contract or a statement from a solicitor. The required notice period depends on whether the agreement is fixed-term or periodic. For example, a proposed sale requires at least 90 days’ notice for most agreements, while an actual sale requires at least 30 days.

Tenants who wish to leave may do so by giving the appropriate notice. Those on periodic agreements can leave at any time with 21 days’ notice. Tenants on fixed-term agreements may leave earlier if they receive a termination notice or if the landlord failed to disclose the planned sale before the agreement was signed.

If neither party ends the agreement, the tenancy continues after the sale, and the buyer becomes the new landlord under the same terms.