Sell a rental property

Last updated on August 22, 2024

When a landlord plans to sell a rental property, the tenancy continues. The landlord cannot end a tenancy because they want to sell a rental unit. Learn more about selling a rental property.

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Showings and open houses

The tenant has a legal right to peace and quiet while the tenancy continues.

The landlord or their agent must provide written notice to the tenant or have their permission to:

  • Enter and show the unit to prospective buyers
  • Conduct an open house

Learn more about showings and open houses.

When a tenanted property has been sold

Once a property is sold, the buyer becomes the new landlord and tenancies continue under the same terms. The buyer and the tenants don’t need to sign a new tenancy agreement but may do so if they both agree.

If neither the buyer nor seller serves a proper notice to end tenancy, the tenancy continues under the terms of the original tenancy agreement.

Ending tenancy to occupy the unit

Once they take possession, a buyer can choose to live in the unit or have a close family member live there.

A close family member means the father, mother or child of the landlord or the landlord’s spouse. It doesn’t mean other relatives, including the brother or sister of the landlord, or the brother or sister of the landlord’s spouse. If a family corporation owns the rental unit, then an individual who owns (or whose close family member owns) all the voting shares could be considered a close family member.

There are two ways a tenancy can be ended so the buyer or a close family member can live in the rental unit:

  1. The buyer submits a written request to the seller stating they will be occupying the rental unit before taking possession of the property, and the seller (or current landlord) gives the tenant a three month notice to end tenancy (RTB-32P). Serving this notice cannot be a condition of the sale
  2. Once the buyer takes possession of the property and becomes the new landlord, they can serve a four month notice to end tenancy (RTB-32L) to the tenant

The landlord or the buyer, as applicable, must generate the Three Month Notice to End Tenancy for Purchaser’s Use (RTB-32P) or the Four Month Notice to End Tenancy Landlord’s Use (RTB-32L) using the Residential Tenancy Branch’s web portal. If a Notice to End Tenancy other than a generated RTB Form 32P or 32L is used, it is legally unenforceable.

  • An example of a generated form RTB-32P is available here.
  • An example of a generated form RTB-32L is available here.

​Tenants have 21 days to apply for dispute resolution after receiving a three month eviction notice (RTB-32P). Tenants have 30 days to apply for dispute resolution after receiving a four month eviction notice (RTB-32L).

Defining occupation:

As there is a separate provision under section 49 of the Residential Tenancy Act to end a tenancy for non-residential use, “occupy” means “to occupy for a residential purpose.” The result is that a landlord can end a tenancy to move into the rental unit if they or their close family member, or a purchaser or their close family member, intend in good faith to use the rental unit as living accommodation or as part of their living space.

 Ending tenancy for demolition or conversion of the unit

A new landlord can serve the tenant a Four Month Notice to End Tenancy For Demolition or Conversion of a Rental Unit (PDF, 1.2 MB) - RTB Form 29 after the title of the property has been transferred and all required permits and approvals are in place if they intends to:

  • Demolish the rental unit or do major repairs or renovations that require the building or rental unit be empty
  • Convert the rental unit to a strata property unit, a non-profit co-operative or society, or a not-for-profit housing co-operative under the Cooperative Association Act
  • Convert the rental unit to non-residential use, such as a store
  • Convert the rental unit into a caretaker’s unit

After a landlord serves a Four Month Notice to End Tenancy, the tenant’s responsibilities under the agreement continue, which means:

​Tenants have 30 days to apply for dispute resolution after receiving a 4 month eviction notice.

Ending tenancy for cause

If a landlord has cause they may serve a One Month Notice to End Tenancy For Cause or End of Employment (PDF, 2.7 MB) - RTB Form 33.

Examples of cause include:

  • the tenant damaging the rental unit
  • interfering with the landlord’s rights

Manufactured home park tenancies

Landlords who plan to sell, convert or redevelop their manufactured home park may only serve a 12 month notice to end tenancy for conversion if they have all the necessary permits and approvals the law requires, and they intend in good faith to convert all (or a significant part) of the property to something other than a manufactured home park.

Compensation for tenants

When serving a three or four month notice to end tenancy, the landlord must compensate the tenant with an amount equal to one month’s rent. This amount must be paid on or before the effective date of the notice period. Compensation is owed even if the tenant gives notice to leave earlier. The tenant may choose to not pay rent in the last month of the tenancy instead of taking a payment from the landlord.

Transferring security and pet damage deposits

When a tenant moves out, the person who owns the property at the time is responsible for returning the tenant’s security deposit or pet deposit. This may make the buyer responsible for a tenant’s security deposit or pet damage deposit, even though the deposits were held by the seller. The buyer and seller may wish to address the transfer of deposits in trust in their contract of sale or the closing settlement.

If the tenant owes money to the seller, it’s important that both the buyer and seller address these debts clearly in the contract of sale and purchase. Landlords should seek independent legal advice if they’re unsure how to do this.

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