Selling a Tenanted Property (Vic)

In Victoria, the Residential Tenancies Act 1997 governs the rights of tenants and lessors of residential premises, including what must occur when selling a tenanted property. This page deals with the rules, procedures and timeframes that apply when selling a tenanted property in Victoria.

Showing a tenanted property

Under section 86 of the RTA, a lessor may enter a rental property to show the premises to a potential buyer or to conduct an open for inspection for potential buyers.

The tenant has the right to be present when the property is shown to potential buyers and if their property is damaged or stolen during the inspection, they may apply to VCAT for compensation.

A tenant is required to keep the property clean and well-maintained throughout their tenancy. However, they are not required to take any additional steps to ensure the premises are well-presented when they are being shown to prospective buyers.  

Advertising a tenanted property

Under section 89A, a lessor may enter a residential rental property to take photos or videos of the premises for advertising purposes.

A tenant may object to premises being photographed or videoed if the material may identify a person who is at risk of family violence or personal violence or if it:

• shows something that directly identifies a tenant
• shows something that reveals sensitive information about a tenant
• shows something valuable and increases the risk of theft
• shows something that it would be unreasonable to expect the tenant to remove or conceal.

An objection must be made in writing. After an objection has been made, the tenant must be given the chance to view any material before it is published, and it may be published only with their consent.

If material is published after a tenant has objected and without their consent, the tenant may apply to ACAT for an order that the material be taken down.

If a lessor wants to use photos or videos of premises more than 12 months after they were taken to advertise the property, they must get the written consent of the tenant (or former tenant) before doing so.  

Entering a property

When a lessor enters a property to show it to buyer or to take photos or videos, they must give the tenant at least 14 days’ notice. They must have made efforts to come to an agreement with the tenant as to a suitable day and time for their attendance. Entry may occur only twice a week and for no longer than an hour, except where otherwise agreed with the tenant.

The lessor must also comply with the requirements set out in section 85 of the RTA.

Buyer must honour rental agreement

If a person buys a property during the period that it is tenanted, the buyer must honour the tenancy agreement. This means that the lease will continue to be in place with the terms unchanged, but the new owner will replace the old owner as the lessor. The tenant will make future rental payments to the buyer or their agent.

When property is sold

When a lessor intends to sell a property, they must serve the tenant with a Notice of Intention to Sell. A tenant who receives a Notice of Intention to Sell may terminate their rental agreement by giving 14 days’ written notice. The lessor may not terminate the rental agreement on the basis of the sale.

If a rental agreement was signed when a property was already the subject of a contract of sale and the tenant was not informed that the property was to be sold during the term of the lease, the tenant may apply to VCAT for an order to terminate the lease on this basis. They may also seek compensation from costs associated with terminating the lease.

If you require legal advice or representation in any legal matter, please contact Go To Court Lawyers.