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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.

Summary

Your landlord (officially called the rental provider) can sell your rental home, even if you have a fixed-term lease (officially called a rental agreement). However, there are rules the landlord or their agent must follow. These include what type of notice they must give you to enter your home, and how and when they carry out 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 you must move out. The landlord can ask you to leave, but there are rules they must follow.

If you are told your home is being sold and you want to leave, there are rules you must follow to avoid ‘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, unit or apartment you (or your share house) rent from someone (usually the owner) or through a real estate agent. Find out more on our page about private rentals.

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 have it valued, 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 be given a ‘notice of intention to sell’ if your landlord or their agent:

  • Wants to enter your home to show the property to potential buyers, at an individual sales inspection or open for inspection
  • Wants to enter your home to show the property to potential lenders, for example, if the landlord is refinancing or a potential buyer’s bank wants to check the property before approving a loan

The notice of intention to sell must be in writing and signed by the landlord or their agent. It must be given to you at least 14 days before they can ask to enter your home.

However, there is some overlap in Victoria’s rental laws in relation to entry by the landlord or agent to get a valuation. One section of the rental laws allows a landlord or agent to enter your home if they state that they want to have the property valued. This may or may not include a statement that they intend to bring a valuer from the bank, for example. Provided it is clear the purpose of the entry is for valuation, they are not required to give you a notice of intention to sell (or 14 days notice). They must, however, give you a written ‘notice of entry’ with at least 7 days notice, and follow other related rules. To learn more, see our page on privacy while renting.

There is no limit on the number of entries for a valuation. However, if you are concerned about the number of entries being made on this basis because it has become intrusive, you may apply to VCAT to limit or prevent further entries on this basis. To learn more, see our page on privacy while renting.

The notice of intention to sell must use the official Consumer Affairs Victoria form: Notice of intention to sell [Word].

The notice can be delivered:

  • In-person, including to a co-renter
  • By registered post, or
  • By electronic communication, such as email, if you have agreed to receive notices this way

For more information on consenting to have notices sent electronically, see our page on starting a tenancy.

The 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, 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.

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

Following a notice of their intention to sell, 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 carry out an open for inspection.

If they want to enter the property to have it valued or to take photos or videos for advertising, they must give you a written notice of entry with at least 7 days notice.

The notice of entry must:

  • Be in writing – a phone call 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 have the minimum notice period (as stated above)

The notice of entry must be delivered:

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

For more information on consenting to have notices sent electronically, see our page on starting a tenancy.

Entry to your home by the landlord (officially called the rental provider) or their agent is allowed between 8 am and 6 pm, 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 the rental provider) or their agent can only stay for as long as is reasonably required to carry out an 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.

An open for inspection cannot take place more than twice a week and cannot last for more than an hour.

Family or personal violence

There are 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.

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

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 for every sales inspection, this includes private inspections and open for inspections. The amount must be equal to half a day’s rent or $30, whichever is more.

If this is not paid to you, you can apply to Rental Dispute Resolution Victoria (RDRV) for compensation, although it is unlikely to be a very large amount. Find out more on our page about claiming compensation.

You can also complain to Consumer Affairs Victoria, which may be able to contact the landlord about paying you what you are owed. Consumer Affairs Victoria has an online Make a complaint form or you can call them on 1300 558 181. Note: Consumer Affairs Victoria does not pay compensation to renters.

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

You can apply to Rental Dispute Resolution Victoria (RDRV) for compensation if:

  • Any of your belongings are damaged or stolen during an entry to your home, or
  • The landlord (officially called the rental provider) or agent has failed in their duty to make sure you have ‘quiet enjoyment’ of your home

Quiet enjoyment means living in your home without interference or disturbance from the landlord or agent, or from things that are within their control to prevent.

Examples of this would be the landlord or agent failing to give enough notice or warning about a sales inspection, failing to negotiate a suitable time for an individual sales inspection, or staying 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), applying to VCAT for a restraining order or other type of order, and applying to Rental Dispute Resolution Victoria (RDRV) for compensation.

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

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

You must receive a letter once the house is sold

Once the property is sold, the landlord or their agent must notify you. You will receive information on paying the same rent to the new owner and be given the new details for paying rent.

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

Your landlord or their agent can ask you to move out, but there are rules they must follow.

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 90 days before they want you to leave.

If the landlord has already signed a contract of sale and wants 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 notice. 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 a 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 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 the 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 in the notice to vacate, you can do this.

You will need to:

  • Give at least 14 days notice of your intention to vacate – you can do this even if you have a fixed-term lease (officially called a rental agreement)
  • Pay rent while you are still in the property, up until your move-out date, even if you move out before that 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 (renting it out to someone else). If the landlord asks you to pay ‘lease break’ costs, we recommend you do not pay anything. The landlord would have to apply to Rental Dispute Resolution Victoria (RDRV) to resolve the dispute.

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 lease, and you agree to this, you can ask for compensation for your inconvenience.

If they agree to compensation:

  • Get the agreement in writing
  • Make sure it is 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 claiming compensation.

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

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

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

Your landlord must let you know if they have plans to sell or they have entered into a contract of sale before you sign your fixed-term lease.

If they did not tell you, and you are told the home has been sold or is about to be sold, after you sign, 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 fineConsumer Affairs Victoria has an online Make a complaint form or you can call them on 1300 558 181. 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.

  • Live Web Chat

    For all Victorian renters.

  • Financial counselling

    For all Victorian renters.

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.

  • Consumer Affairs Victoria

    For all Victorians.

  • Victorian Civil and Administrative Tribunal (VCAT)

    For all Victorians.

  • Rental Dispute Resolution Victoria (RDRV)

    For all Victorians.

There are 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.