7 Things Every BC Seller Should Know Before Selling a Tenanted Property
Selling a tenanted property in British Columbia requires careful planning. Recent changes to the Residential Tenancy Act have introduced new notice requirements, online forms, and strict timelines that can affect your completion date.
If you're thinking about selling a property with tenants, here are seven important things to know.
1. The Timeline Is More Than Just "Three Months"
One of the biggest misconceptions is that giving a tenant three months' notice simply means counting ahead three months. In reality, the notice period begins at the start of the next rental period, which means the actual timeline can be almost four months depending on when the notice is served.
If your sale depends on vacant possession, timing is critical.
2. Selling Your Property Doesn't Automatically End the Tenancy
A tenant cannot be required to move simply because a property is listed for sale. A tenancy can only be ended if the requirements of the Residential Tenancy Act have been met. If the purchaser intends to move into the home, all conditions of the sale must first be satisfied, and the purchaser must provide the seller with a written request before the seller can issue the required notice.
3. The Tenant Is Entitled to One Month's Rent Compensation
When a tenancy is ended for purchaser occupancy, the tenant is entitled to one month's rent compensation. In most cases, this is provided by allowing the tenant to occupy the final month without paying rent.
4. Every Showing Requires Proper Notice
Unless a written showing schedule has already been agreed to, tenants must receive at least 24 hours' written notice before each showing. Tenants also have the right to remain in the home during showings.
5. Your REALTOR® May Not Be Able to Issue the Notice to End Tenancy
This surprises many sellers. If your REALTOR® is licensed only to provide trading services, they cannot generate the Three Month Notice to End Tenancy for Purchaser's Use (RTB-32P) on your behalf. The notice must be generated through the Residential Tenancy Branch's online portal by the landlord, or by a licensed rental property manager who has been authorized to act for the property. Using the wrong process can delay your sale.
6. The RTB-32P Must Be Generated Through the RTB Portal
The Three Month Notice to End Tenancy for Purchaser's Use (RTB-32P) is no longer a downloadable form. It must be generated through the Residential Tenancy Branch's online portal and includes a unique Notice ID. A notice created any other way is not legally enforceable.
7. The Tenant Has 15 Days to Dispute the Notice
Once the tenant receives the Notice to End Tenancy, they have 15 days to dispute it through the Residential Tenancy Branch if they believe it was issued incorrectly or doesn't meet the legal requirements. Using the correct forms, following the proper process, and serving the notice correctly helps avoid unnecessary delays to your sale.
Planning Ahead Makes All the Difference
Selling a tenanted property is different from selling a vacant home. Understanding the timelines, using the correct forms, and following the proper procedures can make the difference between a smooth completion and an unexpected delay.
If you're considering selling a tenanted property, we'd be happy to help you map out the process before your home goes on the market. A little planning at the beginning can save weeks of frustration later.