Wednesday, 29 October 2014

QLD When a property is for sale- tenancies Facts

When a property is for sale

If the owner decides to sell the property (including caravans), the tenant can be affected in a number of ways. 
In a fixed agreement, the owner cannot make the tenant leave because they decide to sell the property. The tenant can stay until the end of the term, and the new owner will become the lessor
If the tenant is in a periodic agreement, and the owner requires vacant possession, they must give the tenant a Notice to leave (Form 12) or Form R12 for rooming accommodation. The tenant must have at least 4 weeks’ notice from the signing of the contract of sale. 
When a moveable dwelling park is being sold to a new ownerIf the moveable dwelling park is being sold but the moveable dwelling tenancies will continue, the outgoing owner/manager must advise the tenants of the upcoming change of owner/manager. This notification is called an Attornment notice. More details are available in the Moveable dwelling park closure fact sheet

Fast facts - all tenancies

  • The lessor/agent must give the tenant a Notice of lessor's intention to sell premises (Form 10)which must include details of how they plan to market the property. 
  • An open house or on-site auction can only be held if the tenant agrees in writing. 
  • If the property is put up for sale within two months of a tenancy starting and the tenant was not informed that the intention to sell the property at the time of signing the agreement, the tenant has the option of ending the agreement with two weeks’ notice. The tenant must give the Intention of notice to leave (Form 13) to the lessor/agent within 2 weeks after the end of the initial 2 month period of the tenancy.
  • If the selling agent is different from the agent who manages the property, the selling agent must also give the letting agent a copy of each Entry notice before entering the property. 
  • If a property is being repossessed by a financial institution which had not agreed to the property being rented, they can give the tenant 2 months to leave (30 days for rooming accommodation), using a Notice to vacate from mortgagee to tenant (Form 19) or Form R19 for rooming accommodation. If they had agreed to it being used as a rental property, they can end a periodic agreement with two months notice, but cannot end a fixed term agreement earlier than the end date unless the tenant agrees.