What are the rules for vacant possession of a property in BC?
Does the vendor have to give tenants a certain length of notice? As a purchaser, what do I have to do?
As real estate investors are constantly looking to cover all their bases when the time comes to close their next deal, knowing how to proceed with a property purchase that is currently occupied by tenants can be critical. Randy Dyck – President of the Eximus Real Estate Team weighs in on the question:
The first question: Is the vendor selling the property? If so, the vendor cannot give legal notice until he has a firm deal, with actual subject removal. That means the time to take possession could be extended in comparison to a regular purchase where tenants are not involved.
The tenant then has two months from the first of the month before he or she needs to vacate property. Also, the tenant pays for the last month of the tenancy but is refunded the final month of rent upon exit, reimbursed by the owner of the property.
As the purchaser, it is prudent to write into the purchase and sale agreement: The seller will give legal written notice to the tenant to vacate as per the BC Tenancy Act. I advise my clients/buyers to complete or close the deal (pay for the property) 2 months from when the official notice or 2 month notice is given. If the buyer takes ownership of the property prior to the 2 months, the buyer will not be entitled to the last month of rent. If it is important for the buyer to have an earlier close by all means, close. It just is as financially beneficial to the buyer.
For more details on this situation and others regarding tenanted properties, check out the Residential Tenancy Branch website.
Have you recently purchased a property that was occupied by tenants? Have you SOLD a property that was occupied by tenants? Share your experiences in the comments!