Selling a home with tenants in it is common on the North Shore: a house with a rented suite, a condo you’ve been renting out, a home you moved out of. It can go smoothly, but the tenant has rights that don’t end because you’ve decided to sell. Here’s how British Columbia’s Residential Tenancy Act shapes showings, timing and vacant possession.
Selling doesn’t end a tenancy
A landlord can’t end a tenancy just because they want to sell. The tenancy continues with the property: if the buyer doesn’t need the home empty, they take it over with the tenant in place, on the same terms. Make sure the contract of purchase and sale says clearly whether the buyer is taking the tenancy or wants vacant possession.
Showings
Under the Act, you, or your REALTOR® on your behalf, may enter the rental unit only with the tenant’s permission or with written notice given at least 24 hours and no more than 30 days ahead. The notice must state a reasonable purpose and the date and time, which must be between 8 a.m. and 9 p.m. unless the tenant agrees otherwise. The tenant keeps exclusive possession of the unit: they don’t have to leave during a showing.
A cooperative tenant is your best asset. Talk to them early, be flexible about times, keep showings to a reasonable number, and consider offering something for the inconvenience, such as a rent reduction during the listing period. Ask before photographing their belongings, and don’t stage their space without their consent.
If the buyer wants the home empty
A tenancy can be ended for the buyer’s use only in the way the Act sets out. You, as landlord, may end it if:
- you’ve entered into an agreement in good faith to sell the home;
- all the conditions of the sale have been satisfied, meaning subjects are removed; and
- the buyer asks you in writing to give notice, because the buyer or a close family member intends in good faith to live in the home.
A close family member means a parent, spouse or child, or the parent or child of a spouse. A buyer that is a family corporation can also qualify, for a shareholder or their close family member.
The notice and the timeline
- The notice must be generated through the Residential Tenancy Branch’s online portal and served on the tenant by you, the landlord, or a licensed rental property manager.
- Notice period: at least three months after the tenant receives the notice. It must also end on the day before rent is due, and for a fixed-term lease, not before the end of the fixed term.
- Dispute period: the tenant has 21 days to dispute the notice.
In practice, that means a completion date at least three months, and often four, after subject removal. Build that into the contract, and don’t promise a buyer vacant possession sooner than the law allows.
Compensation
- The tenant is entitled to one month’s rent from the landlord, on or before the effective date of the notice. They can simply not pay the last month’s rent.
- If the buyer, or the landlord, doesn’t use the home for the stated purpose within a reasonable period after the notice takes effect, for at least 12 months, the tenant may be owed an additional 12 months’ rent, unless there were extenuating circumstances. When the notice was given at the buyer’s request, that payment is the buyer’s responsibility.
Suites and disclosure
If the rented space isn’t permitted by the municipality, such as an unauthorized suite, that’s a material latent defect your REALTOR® must disclose to buyers. See The Property Disclosure Statement.
If you’re buying a tenanted home
- Ask for the tenancy agreement, the rent, the deposit held and the tenancy’s history.
- If you want vacant possession, put your written request and timing into the contract, and plan your completion date around the three-month notice.
- Only ask for vacant possession if you or a close family member will really live there for at least 12 months.
Questions people ask
Can I end the tenancy before I list, to make it easier to sell?
Not to sell it. Ending a tenancy for landlord’s use requires that you or a close family member intend in good faith to live there. Selling isn’t one of the reasons the Act allows.
Can I ask the tenant to leave by agreement instead?
A landlord and tenant can agree in writing to end a tenancy. The tenant doesn’t have to agree, and any agreement should be clear and voluntary. Get advice first.
What about my security deposit?
If the buyer takes over the tenancy, the deposit and any interest owed are usually handled through the statement of adjustments, so the buyer becomes responsible for returning it.
General information for sellers and buyers in British Columbia, current as of publication. It’s not legal advice. Tenancy rules change, and each tenancy is different; check with the Residential Tenancy Branch or a lawyer before serving any notice.