Selling a rented property: how does it work?

Sometimes, the owner of a rented property decides to sell it. In this case, it is natural to wonder what may happen to the tenant. Here are a few explanations. 

When a rented property is sold, the tenant will not be evicted overnight. The tenancy agreement will be transferred to the buyer. 

Exercising the right of first refusal as a tenant

Although tenants are not generally entitled to the right of first refusal, there are certain exceptional circumstances. When the property is put up for sale, if the owner serves the tenant with notice to sell, the tenant may then exercise the right of first refusal. Otherwise, the tenancy agreement is simply transferred to the buyer. 
This option may notably be considered when the sale takes place during the final six months of the tenancy agreement. In this case, the tenant is served with notice to sell and may therefore exercise the right of first refusal. 

Furthermore, this right may be exercised if the sale takes place after the property has been divided into several units or if the seller sells, as a single lot, a building comprising more than five units. In such cases, the right of first refusal may apply.

The buyer wishes to end the tenancy agreement.

If the buyer wishes to end the tenancy agreement, it is their responsibility to notify the tenant. 

However, they must take certain restrictions into account. They will need to serve the tenant with notice to repossess the property. To do so, they must have been considered the landlord for at least six months before the end of the tenancy agreement. Otherwise, they will not be entitled to serve the tenant with notice to repossess the property. 

If you wish to sell a rented property, or if your landlord wishes to sell the property they rent to you, make sure you understand your rights.