Can you sell your tenanted property ?

by Administrator 26. October 2016 20:44
So you have a tenant in your property and you decide you want to sell, can you do it ??
Yes you can. A few important things to remember are:
Does the tenant want to buy the property? If they like living there then this is their chance to have secure tenure.
A tenants lease over rides a sales contract so the person who purchases the property needs to honour the lease agreement.
A sale contract will incorporate The Joint Form of General Conditions which requires vacant possession so the contract will need to state if vacant possession won't be given in the event the tenant/s are staying.
However if it is a periodic lease (known as month to month) the tenant needs to be given 60 days notice to vacate. But, if the lease has 30 days or more remaining then 30 days notice can be given that the lease won't be extended in time.
Notice for home opens is required (special condition clause).
Have a good relationship with the tenant so that they co-orperate with the sale and appointments.
If it is an option, ask the tenants for their preference for either home opens or viewings by appointment and set some regular times up so that every week they know what to expect.
Ensure that any special conditions in the lease have been relayed to the sale agent selling your home to ensure they are passed on to potential buyer.
At settlement the seller receives the rent from the day of settlement.
Often a copy of the lease will be given to a potential buyer however if there are multiple offers and the tenant isn't comfortable about the lease copy being given out to various people then the selling agent needs to write into the contract of sale- 'The seller/s warrant the lease end date is until xx/xx/xx at $000.00 per week for example. In law, the word 'warrants' carries over after settlement so the seller is responsible that this is true and is liable even after settlement has taken place.. A copy of the lease could be given to the successful buyer prior to settlement.
Communication is the key and keeping a good relationship with them is vital.

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