Selling a Tenanted Home in BC: Tenant Notice When the Buyer Moves In

You own a home with a tenant in it, and a buyer wants to live there. It is natural to assume the tenant must leave once the sale goes through. In British Columbia, that is not how it works, and getting the notice wrong can leave you with a tenant still in place and a buyer expecting an empty home.

This article walks through who serves the notice, which form is used, what you must pay the tenant, and how the tenant can respond. It is general information, not advice on your situation, so confirm the details with a lawyer before you act.

This article covers the law of British Columbia.

A sale does not end the tenancy

Selling the home does not, by itself, end the tenancy. The tenant's rights carry on unless a valid notice to end the tenancy is properly given.

Which form is used depends on timing. Before the buyer takes possession, the buyer sends the seller a written request, and the seller, as the current landlord, gives the tenant a three-month notice to end tenancy on form RTB-32P. After possession, the buyer is the new landlord and serves form RTB-32L.

What the notice rules require

The notice is only valid if the buyer, or a close family member of the buyer, intends in good faith to occupy the home. A notice given for another purpose is open to challenge.

• The notice must be generated through the Residential Tenancy Branch web portal, otherwise it is unenforceable.
• The landlord must pay the tenant one month's rent as compensation on or before the effective date of the notice.
• The tenant has 21 days to dispute the notice.

The notice period is three months, with one month's rent as compensation. Before possession, the buyer's written request comes first, and the seller, as current landlord, then gives the notice. Rules and forms can change, so confirm the current figures with a lawyer before relying on them.

Keeping the notice out of the sale conditions

Serving the notice cannot be made a condition of the sale. In practice, this means your contract of purchase and sale should not hinge on the tenant being removed through this notice.

Because of that, talk with your realtor and a lawyer early about how the contract will deal with a tenanted property, so you and the buyer share the same expectations. The tenant also has a right to dispute, so the outcome is not something either of you can guarantee.

Written contracts and disclosing defects

A contract respecting land is generally not enforceable unless it is in writing signed by the party to be charged, or an exception applies, such as that party acting in a way that shows a contract was made, and paying or accepting a deposit counts as such an act. A lease of land for 3 years or less is excluded from this writing requirement.

A licensee acting for a seller must promptly, and before any agreement is entered into, disclose known material latent defects to all other parties to the trade. The exception is that the licensee need not disclose a defect to a party who has already received written disclosure of that defect from the selling client. A material latent defect is one that cannot be found through a reasonable inspection and includes things like a dangerous condition, a defect that would be very expensive to fix, or a lack of appropriate permits. If you tell your licensee not to disclose one, the licensee must refuse to keep providing trading services to you for that trade.

What to do next

• Read your tenancy agreement and note the rent amount, since compensation is one month's rent.
• Ask your realtor how the contract will address the tenant, and make sure the notice is not a condition of sale.
• Wait for the buyer's written request before serving form RTB-32P.
• Generate the notice through the Residential Tenancy Branch web portal.
• Budget to pay one month's rent on or before the effective date.
• Confirm the current rules with a lawyer before you serve the notice.

If the tenant disputes the notice or the buyer's plans change, get legal advice promptly, because the tenant's window to dispute is short and the consequences of a defective notice can be significant.

Frequently asked questions