NSW Inclusion of clause in lease that precludes property sale

Discussion in 'Property Management' started by FrivolousPanda, 11th Feb, 2019.

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  1. FrivolousPanda

    FrivolousPanda Well-Known Member

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    First time renter in NSW and looking at a place where the owner is interested in selling as the property is available for lease and for sale.

    Is it legal to include a clause in the lease agreement which would preclude the landlord from selling the property? Wasn't sure if it's a right written in the tenancy act so can't be contracted out of.

    Guess this may make the application far from desirable but it's also a pain to have to deal with inspections.

    Thanks
     
  2. thatbum

    thatbum Well-Known Member

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    I don't think something like that would be enforceable.

    What's such a pain about inspections anyway? You don't have to do anything special for them.
     
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  3. FrivolousPanda

    FrivolousPanda Well-Known Member

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    Thanks for your reply.

    I have a young newborn so disruption can be annoying to manage though I'm sure it gets easier as they get older.
     
  4. Angel

    Angel Well-Known Member Premium Member

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    You can negotiate conditions of inspections with the agents who will prefer to work with your family's interests rather than risk getting you off side.
     
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  5. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    So rent something that is not "for sale".
     
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    There are provisions in the NSW Act regarding properties which are listed for sale whilst tenanted. If it is not disclosed, then you may have a right to terminate the lease but if they have disclosed that the property is for sale, then you may not be ablet to terminate the lease. Refer to the tenancy information on the Fair Trading Website.
     
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  7. The Y-man

    The Y-man Moderator Staff Member

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    Noting how opens I have attended in the past have been conducted where there are tenants, I don't think I would want strangers nosing through my stuff either!!

    The Y-man
     
  8. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Welcome to the world of renting. You dont own it. You lease it. You have limited rights.
    Dont like it ? Buy a property.
     
  9. PMC Property

    PMC Property Sydney, Brisbane, Newcastle, Toowoomba Business Member

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    Last edited: 11th Feb, 2019
  10. thatbum

    thatbum Well-Known Member

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    I generally think of tenants as having all the power in this scenario. There's Victorian precedent that pretty much says that tenants can refuse to have home opens, as opposed to inspections by appointment only. Its not very well known in other states, but as far as I can tell, its good law across the country.

    Plus in practice, a tenant can pretty much sink any chances of showing any potential buyers through the premises in a good light.

    Legally, they're entitled to be present throughout any inspections, and don't have to do anything special for the landlord such as cleaning up beyond a normal 'lived-in' standard.

    For example, there's nothing stopping a tenant from sitting around in their underwear watching porn and having loud music blaring through the whole house during an inspection.
     
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  11. FrivolousPanda

    FrivolousPanda Well-Known Member

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    I would rather lease a property which isn't for sale but there are limited properties available in the area we have selected based on our needs. I've been on the look out for the last 3-4 months.

    Totally agree Paul. Just want to understand what my limited rights are so I enter with eyes open rather than be surprised.

    Thanks for the link. It doesn't discuss the idea of having a clause in the lease which precludes the landlord from selling the property, thus I take that means the clause can't be added and held up legally. However, it supports thatbum's point of being at the inspection and not allowing home opens.

    I'm not planning to be a dick about it all and would like to set expectations whilst understanding what I can legally request.
     
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  12. PMC Property

    PMC Property Sydney, Brisbane, Newcastle, Toowoomba Business Member

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    There is another possibility here that I don’t think has been mentioned yet. Did the previous tenancy end badly by any chance and they are making an insurance claim?

    Reason I mention it is that some PDS’ state that for lost rent to be claimed while being on the market for sale that the property must also be advertised for rent. A strange technicality to be sure but it could be the reason they are running dual marketing campaigns.

    Unfortunately if this is the case - and you’d have to ascertain which is really their primary objective - this would mean they’re probably hoping to sell it rather than renting it.

    - Andrew
     
  13. Zepth

    Zepth Well-Known Member

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    Regardless of the possibility of such a clause being enforceable or not. One would have to wonder what would be in it for the landlord to even agree to the clause being added in the first place
     
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