Selling in NSW, tenant knew we wanted to sell

Put an apartment up for sale in NSW.

Tenant has given two weeks notice.
To be fair this is the norm as they are entitled to, but, my understanding of tenancy laws are that if the tenant is aware you have the intent to sell prior to them signing a lease they lose the 14 days notice option and it becomes a break lease ?

Prior to the current lease being signed we made it clear that we were considering selling and in fact offered the property to the tenant first (yes, have the email paper trail), the tenants were so keen on staying they actually approached the PM 3 months in advance to resign for 12 months, current lease expires mid Feb 2022.

So the question is, would you argue that this is now a break lease situation ?

 

If you treat it as a break lease, dont you have to be looking for a tenant for them to have to keep paying? But you probably wont be looking for another tenant as you want to settle it with vacant possession?

chances are it will sell fast anyway. If the tenant insisted on staying instead, it would be harder for you to sell with vacant possession.

 

The tenant actually approached the PM the week prior to us listing (unknown to us at the time) about break fee's as they were wanting to find a larger place....

Notified the PM and agent (same REA) that if the tenant works in with us for the sale that we would offer the last two weeks rent free and arange settlement for mid November to suit them as there is a property the PM has coming off lease that the tenant was happy to move to, seemed perfect !

Looks like they found something else sooner....

 

Don't be insane.

Thank your lucky stars they are leaving and not ****ing up your sale.

Earlier in the year I had nightmare tenants who tried to sabotage my sales. Jealous scoundrels. Thank goodness my agent was hardcore authoritative and read them the riot act with tribunal forms ready to lodge if they didn't stop their shenanigans.

Forget this break lease nonsense. Get rid of em! The sooner the better and proceed with your sale without issues.

 

Aside from whether selling with or without the tenant is a benefit, the NSW legislation is that the tenant can only terminate with 14 days notice if they were not aware that the property would be put up for sale.

So if there's email trail that they were aware the property would be up for sale at the time of signing the new lease, then it would be a break lease if you wanted to hold them to it.

 

Thank you for the replies

@Trainee yes, it would become for sale or rent
The listed sale price is at the top end of the scale for the area/complex, and we don't honestly expect it to sell at all !
We were only making enquiries about this IP's value and now the promises made will likely not eventuate, our error, we believed the agency and the feedback from the tenant

They have they been good tenants, and seemed to be on board according to the PM & sales agent (seem's they have turned, or more likely already had somewhere else in mind).

Thank you, this was my interpretation also.

I hadn't budgeted for this, currently funds are "tight" (outgoings are well more than 3 times incoming) due to ongoing issues/breaches/court proceedings over custody (hense the selling).
This property was purchased new for us to down size to in a few years, top floor northerly aspect good views ( for the area ) add in various upgrades/all costs we will be lucky to break even (purchase price, upgrades, stamps, blinds and screens, window tint, selling costs) and as it turns out may make a loss !
We should have retained it tbh, but as we are trying to sell another and need funds desperately............

Probably won't take it any further.
Happy to know we tried to do the right thing by all, just struggling lately, and this now hurts further

 

Since you have a PM, you won't need to liaise with the tenants directly and hence should claim your break fee as its yours under legislation and will help reduce some of your out of pocket expenses.

 

not in NSW. All leases in NSW now come with fixed break fees as the only option.

 

Thanks Wylie
The additional holding costs have really become a drain over the last 6 months
Further to this we are unlikely to move there now.
If we are successful with regaining shared custody of our grandaughter there isn't enough room, if we don't then we will make a clean break, selling out of Sydney and move regionally (we are seeing the detrimental effect their anger and spite is having)

 

Seems very sensible.

I see tenants ATM becoming very worried about being able to keep roof over heads. Not sure what state of lockdown is in force, but right now is a good time to give ppl benefit of doubt.

I currently am delaying a sales process due to tenants. As well values are going north, so it might be good for us also. Win Win?

....... and of course avoiding the @Sackie story re: shenanigans is a good idea.

 

If you genuinely want to sell, it's better for you that the tenants have moved of their own accord without you having to coax them out. From the tenant's point of view, you probably didn't say that you will definitely be selling the property from this or that date, you were just having a conversation about whether they wanted to buy it from you.
Not sure if you've ever rented but having someone else's party in a space you're paying for would not be fun, especially in covid times. Selling a tenanted property is not something you do to test the waters. But sounds like you do want to sell.
If you are worried about your mortgage repayments, you only need to speak to your bank about some kind of pause until you sell. Times have changed.