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Rental question

Discussion in 'General Property Chat' started by Brian84, 18th Sep, 2016.

  1. Brian84

    Brian84 Well-Known Member

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    Hi everyone,

    Just a question for my sister in law. She is renting a house at the moment and has just signed a 10 months lease. She has just found out that the owner is now selling the house. She thinks that when they sell the house the new owner can pay out the 10 month lease and kick her out.

    Can this happen to her? If they pay out the lease will she get compensated because she has signed a rental agreement?

    Any advice would be appreciated

    Brian
     
  2. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi Brian

    While the laws in each state differ, the simple answer is that the purchaser inherits the tenant and must honour the lease. The purchaser could offer the tenant the opportunity to leave early by offering compensation but the tenant is not obliged to accept.

    Which state is the property located in?
     
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  3. Azazel

    Azazel Well-Known Member

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    I think she can stay while she has a lease?
    They could give notice, but normal timelines would apply I think.
     
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  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    No, her lease would stand - unless perhaps if she had notice of the sale at the time of entering the contract.
     
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  5. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    I assume she is in NSW. If so the lease stands and cannot be ended early except by mutual agreement.

    Also if the owner had planned to sell the property prior to her entering into the lease and did not disclose, she has the right to terminate with no penalty with 14 days notice.
     
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  6. Brian84

    Brian84 Well-Known Member

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    Thank you all for the replies. Yes the property is in Sydney.
     
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  7. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi Brian

    It is probably easiest she contact Fair Trading NSW to discuss and understand her position. Tenants_and_home_owners
     
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