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Rental home is being sold

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This information is a guide and should not be used as a substitute for professional legal advice.

Rental Dispute Resolution Victoria now deals with some rental disputes instead of VCAT. While we update our website see more info at: www.rdrv.vic.gov.au

Summary

Your landlord (officially called your rental provider) can sell your rental home, even if you have a fixed-term lease (officially called a rental agreement). However, there are rules that the landlord or their agent must follow. These include what kind of notice they must give you to enter your home, and how and when they conduct sales inspections or take photos and videos for advertising.

If your rental home has been sold or is going to be sold, it doesn’t necessarily mean that you must move out. The landlord can ask you to leave, but there are rules they must follow. If you are told the home is being sold and you want to leave, there are rules that you must follow, to prevent ‘breaking’ your lease and paying costs. If you do stay once the home is sold, your lease continues at the same rent and with the same bond, but the new owner becomes your landlord.

What is a private rental?

A private rental is a house or apartment you (or your share house) rent from the owner or through a real estate agent.

Steps for the landlord to sell your rental home

If the landlord wants to sell your rental home, there are rules they must follow about how and when they enter your home to get a valuation, take advertising photos and videos, or show buyers. There are also rules about telling you once the home is sold and giving notice if they want you to leave the rental property.

You must receive a notice of intention to sell before entry

You must receive a ‘notice of intention to sell’, if the landlord or their agent wants to enter your home to show, have valued or advertise it, so they can sell it.

The notice must be in writing and signed by the landlord or their agent. The notice needs to arrive at least 14 days before the landlord or agent can ask to enter your home to conduct an individual sales inspection, open for inspection, valuation, or photo or video shoot for advertising.

Even if the landlord or agent told you before you signed a lease that there were plans to sell the property, they must give you this notice.

The notice must use the template from Consumer Affairs Victoria [Word 74.8 KB].

The notice can be delivered:

  • In-person, including to a co-renter
  • By Registered Post
  • By email, if you have agreed to receive notices this way

See our page on starting a tenancy for more information on consenting to have notices sent electronically.

Your landlord must follow the rules to enter your home

Your landlord or their agent is legally allowed to enter your home for an individual sales inspection, an open for inspection, or a valuation, or to take photos and videos for advertising. However, there are rules they must follow. If they follow the rules, you must let them in.

See our page on your privacy while renting, to learn more about what to do if they do not follow the rules.

Following  a notice of their intention to sell the property, the landlord (officially called the rental provider), or their agent, must give you a written ‘notice of entry’ at least 48 hours before they want to enter the property to show a potential buyer the home or conduct an open for inspection, and 7 days notice if they want to enter the property to take photos or videos for advertising or conduct a valuation.

The notice of entry must:

  • Be in writing – a phone call or text message telling you about it is not enough
  • State the reason under the law that allows them to enter your home
  • Be given to you in enough time to ensure you are given the minimum notice period (as stated above)

You must receive the notice of entry in one of the following 3 ways:

  • In-person between 8 am and 6 pm
  • By mail
  • By electronic communication, such as email, if you have given written consent to receive notices this way

See our page on starting a tenancy for more information on consenting to have notices sent electronically.

Entry to your home by the landlord (officially called the rental provider) or their agent is allowed between 8am and 6pm, but not on public holidays.

If the reason for the entry is to show an individual buyer the property, or to take photos or videos for advertising, your landlord or their agent can only enter if they have made reasonable attempts to agree with you about the days and times.

Your landlord (officially called your rental provider) or their agent can only stay for as long as is reasonably required to conduct the individual sales inspection or to take photos and videos for advertising.

A photographer or sales agent, or any other agent, must act reasonably and respect your privacy during the visit. For example, they cannot go through your drawers or wardrobes or damage your belongings.

In relation to an open for inspection, these cannot take place more than twice a week and cannot last for more than an hour.

Family or personal violence

There are also extra legal protections for those experiencing, or at risk of, family or personal violence. These include a requirement to only hold inspections by appointment, not public open for inspections.

For more information, see our page on your privacy while renting.

You have the right to object to certain photos or videos being taken, including if they expose you or someone else to the risk of personal or family violence, or because valuable items shown expose you to the risk of your home being broken into.

See the information on our page on your privacy while renting, to learn more about your right to object to photos or videos.

Family or personal violence

There are extra legal protections for those experiencing, or at risk of, family or personal violence.

See the information on our page on your privacy while renting.

The landlord (officially called the rental provider) must pay you compensation equal to half a day’s rent or $30, whichever is greater, for every sales inspection held when your rental home is being sold.

If this is not paid to you, you can apply to VCAT for compensation, although it is unlikely to be a very large sum. You can also complain to Consumer Affairs Victoria, which may be able to contact the landlord about paying your what you are owed. Note: Consumer Affairs Victoria does not pay compensation to renters.

Consumer Affairs Victoria has an online ‘Make a complaint’ form, or you can call them on 1300 55 81 81.

For more information, see our page on complaints about landlords and agents.

You can apply to VCAT for compensation if:

  • Any of your belongings are damaged or stolen during an entry to your home
  • The landlord or agent has failed in their duty to make sure you have ‘quiet enjoyment’ of your home

Examples of this would be failing to give enough notice or warning about a sales inspection, failing to negotiate a suitable time for an individual sales inspection, or if a sales agent stays too long during an open for inspection.

For more information, including how to apply for compensation, see our pages on your privacy while renting and claiming compensation.

There are actions you can take, when the landlord (officially called the rental provider) or agent does not follow the rules about privacy and entry or access to your home. These include sending them a ‘notice of breach of duty’ (asking them to fix the problem and compensate you) or applying to VCAT for a restraining order, compensation order or other type of order.

What action to take depends on what rules have been broken and your circumstances.

See our page on your privacy while renting, to learn what to do.

You must receive a letter once the house is sold

Once the rental property is sold, the landlord or their agent must tell you that the property is sold and that the same rent you are already paying should now be paid to the new owner. You will be given the new details for paying rent.

You must receive notice if the landlord wants you to move out

If the landlord or their agent wants you to move out because they have sold the property as ‘vacant’, they must give you a ‘notice to vacate’ at least 60 days before they want you to leave.

If the landlord has already signed a contract of sale and want you to move out, they must give you a notice to vacate within 14 days of signing the contract of sale, or when all the contract conditions have been met. This means the landlord cannot think about it for a few months after signing a contract, then use the sale as the reason for sending the notice to vacate.

If you have a fixed-term lease, you have the right to stay until the end of your fixed term. The date in the notice to vacate cannot be before the end of your fixed term, unless you have agreed to leave earlier.

If you receive a notice to vacate, it must include evidence showing that the landlord intends to sell the property or has sold it. This evidence must be either a signed contract of sale or a clear and legally valid sales authority (a document that appoints a real estate agency to sell a property).

For more information see our page on notices to vacate and eviction.

You must give notice if you want to move out

If you want to move out, because the rental home is being or has been sold, there are rules you must follow, including giving the landlord or agent a notice of intention to vacate with the correct amount of advanced warning. You can do this if you have been given a notice of intention to sell but were not told of the landlord’s plans to sell before you signed the lease, or if you receive a notice to vacate and want to move out earlier than the date given.

If the landlord (officially called the rental provider) or their agent gives you a notice of intention to sell and did not tell you about the landlord’s plans to sell the property before you signed your lease (officially called the rental agreement), you can tell them that you want to move out. You can do this even if you have a fixed-term lease. You cannot be asked to pay any ‘lease break’ costs (compensation to the landlord) if you end your lease this way.

To do so, you need to give the landlord or agent a ‘notice of intention to vacate’ with at least 14 days written notice. You must pay the rent while you are in the property, up until the date listed on the notice, even if you move out before that date.

For information on how to give a notice of intention to vacate, see our page on ending or breaking your lease.

If your landlord (officially called your rental provider) gives you a notice to vacate because the property has been, or is being sold, and you want to move out before the vacate date that is in the notice to vacate, you can do this.

You will need to give at least 14 days notice of your intention to vacate, and you can do this even if you have a fixed-term lease (officially called a rental agreement).

You will have to pay rent while you are still in the property, up until your move-out date. You cannot be asked to pay ‘lease-break’ costs for leaving early, because the landlord is selling the property and not re-letting it. If the landlord does ask you to pay ‘lease break’ costs, we recommend you do not pay anything. The landlord would have to make a claim to VCAT, which decides whether any costs should be paid.

For information on giving a notice of intention to vacate, see our page on ending or breaking your lease.

Ask for compensation if you agree to move out early

If the landlord wants you to move out before the end of your fixed term, and you agree to this, you can ask for compensation for your inconvenience.

If they agree to the compensation, get the agreement in writing and make sure that it’s signed by you and the current or new owner, whichever one owns the property at the time and is offering you the compensation, or their agent.

See our page on compensation for renters.

Note: You do not have to agree to move out before the end of your fixed term.

See the information on this page about notice if the landlord wants you to move out.

Report the landlord if you were not told of plans to sell

If the landlord already has plans to sell the property, or has entered into a contract to do so, before they enter into a fixed-term lease with you, they must tell you about this before you sign.

If they did not, and you are then told the home has been sold, or is about to be sold, the landlord has committed an offence under Victorian rental laws.

You can report an offence to Consumer Affairs Victoria, which can issue an infringement notice to the landlord or agent and make them pay a fine. Consumer Affairs Victoria has an online ‘Make a complaint’ form, or you can call them on 1300 55 81 81.

Note: Consumer Affairs Victoria does not pay compensation to renters.

For more information, see our page on complaints about landlords and agents.

Get help and other resources

If you need support when your rental home is being sold, help is available.

Tenants Victoria services

  • Renter Support Line

    For all Victorian renters.

  • Financial counselling

Other organisations

  • Anika Legal

    For Victorian renters who cannot afford a private lawyer.

  • Federation of Community Legal Centres

    For all Victorians.

  • Tenancy Assistance and Advocacy Program (TAAP)

    For Victorian renters in private rentals, rooming houses and caravan parks who are in financial hardship or affected by family violence.

  • Victorian Civil and Administrative Tribunal (VCAT)

    For all Victorians.

  • Consumer Affairs Victoria

    For all Victorians.

There are step-by-step guides, self-help tools and other resources to assist you with understanding more about when a landlord or agent can enter your property if your rental home is being sold, as well as compensation for renters.

  • Tenants Victoria animation on compensation

    Tenants Victoria has prepared a one-minute animated video about compensation.

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