What Are Tenants Right During A Property Sale?

Essentially, tenants’ rights are governed by a combination of general housing-related laws/bylaws and their specific contracts. A contract cannot take away rights that are set in law. It can only add to them. Overall, tenants’ rights during a property sale are much the same as tenants’ rights at any other time.

A Property Sale May Not Affect Tenants At All

Knowing that a landlord is selling a property can be stressful for tenants. This is understandable. It is, however, important to note that you may not be impacted at all. The property may simply be sold to another investor. If it is, the only difference you are likely to see is that you pay your rent to a different person/company.

You Have The Right To Be Informed Of The Completed Sale

Technically, your landlord does not have to tell you when they are putting the property up for sale. In practice, they would probably need to do so to facilitate viewings.

Once the property is sold, however, your current landlord must provide you with the details of the new owner. If they fail to do this within 2 months, they may still be held liable for any issues with the property.

You Have The Right To Complete Your Lease

Once a contract is agreed upon between two parties, both parties are obliged to honour it (unless they mutually agree otherwise). If your current landlord sells the property in which you live, they will effectively transfer your existing contract to the new owner. Your lease will therefore continue as it currently does until it expires.

Similarly, your deposit will be transferred to the new landlord. It will remain protected as before. When you leave, your new landlord will be responsible for returning it to you.

You Have The Right To Be Given The Notice To Leave

The rules around evicting tenants vary depending on where in the UK you live. In Scotland, you can only be evicted under certain circumstances. In England and Wales, landlords can still use “no faults” evictions (more properly known as Section 21 evictions). The government has committed to banning these, but it is not clear when this will happen.

Regardless of where you live and what type of tenancy you have, you must be given a minimum of 2 months’ notice to leave the property. In some cases, you may be entitled to more. Check the rules in place in your area.

You Have The Right To The Peaceful And Safe Enjoyment Of Your Property

In a nutshell, your landlord’s decision to sell the property cannot have an excessively negative impact on your quality of life as a tenant. This has three key practical implications.

Your Landlord Must Continue To Maintain The Property

If any repairs, maintenance, or other issues come up while the property is up for sale, your landlord must fix them as they usually would. In practical terms, it’s usually in their interests to do so to appeal to buyers.

Your Landlord Must Conduct Viewings Reasonably

You have the right to “quiet enjoyment” of your property. This is often stated explicitly in tenancy agreements. Even if it’s not, it’s essentially self-evident, given that you are paying rent to the landlord for the use of it.

Technically, this may give you the right to refuse to allow viewings. In practice, there will probably be a clause in your contract that allows your landlord to conduct them. They must, however, do so in a way that does impinge upon your enjoyment of the property.