Deal or No Deal: Navigating a Tenant’s Rights and a Landlord’s Rights during the Sale of a Residential Property

Most residential tenancies in British Columbia are governed by the Residential Tenancy Act, S.B.C. 2002, c. 78 (the “RTA”).

In recent years, the RTA has been amended to provide more and more protections to tenants faced with an eviction arising from the sale of the rental property. At present, tenants are entitled to receive three clear months’ notice and one month’s rent compensation from their landlord when a purchaser or their “close family member” (as defined under the RTA) intends in good faith to occupy the rental property and all of the conditions on the sale have already been satisfied. Landlords are also only able to obtain this kind of notice to end tenancy from the Residential Tenancy Branch portal itself, and only after disclosing the name, contact information, and other personal information of the proposed new occupant of the rental property to the Branch. In addition, the landlord must confirm that they have met eligibility requirements for this end of tenancy option in advance of the Branch actually issuing a notice for the landlord to use. Even after a tenant vacates the rental property under a notice to end tenancy, the RTA equips tenants with additional protections. Tenants are entitled to receive additional compensation equivalent to 12 months’ rent when the purchaser or their close family member does not actually occupy the rental property for at least 12 months within a reasonable period of time after their eviction date.

Needless to say, the RTA offers strong tenant protections in a rental property sale. But what protections are available to a landlord when their tenant interferes with their efforts to sell the rental property in the first place? The RTA has landlords covered too.

Knock, Knock

Selling a rental property will invariably enable a landlord to gain access to the property at multiple times during the course of a listing. Access may be required for:

  • Photographing the rental property for the listing;
  • Preparing the rental property for the listing;
  • Hosting a realtor’s open house;
  • Showing prospective purchasers through the rental property; and
  • Facilitating property inspections for prospective purchasers.

Each of these purposes enable a landlord and/or their real estate agent to gain access to a rental property. With that said, even reasonable purposes for access must still be balanced with a tenant’s right to “quiet enjoyment”.

Quiet enjoyment includes the right to reasonable privacy as well as freedom from unreasonable disturbance. To that end, the RTA affords tenants at least 24 hours written notice in advance of a landlord or their real estate agent entering the rental property for any of these purposes, absent a tenant’s agreement to a shorter timeframe (section 29). The proposed entry time must also be within a certain window (between 8:00 a.m. and 9:00 p.m.) unless the tenant otherwise agrees. Last but not least, any notice of entry must be delivered to a tenant using one of the approved delivery methods under the RTA to be valid. Fortunately, a landlord need only look at one section of the RTA to confirm how to deliver these entry notices: section 88. Depending on the chosen delivery method, a tenant may be afforded even more advance notice of entry (e.g. a 24 hour notice of entry posted on the rental property door is only deemed to be received by the tenant three days after posting). Again, the RTA keeps things simple and a landlord need only read section 90 to confirm when a notice is generally deemed to be received by their tenant. Wherever possible, landlords and tenants should consider negotiating advance showing schedules so that everyone agrees on the parameters for entry.

Do Not Enter

Assuming that a landlord has met their notice of entry requirements under the RTA, they are free to access the rental property and get things moving on their sale. And yet….. what happens if a tenant refuses entry?  The consequences for an uncooperative tenant are serious.

The Beginning of the End

If a tenant closes the door on a proper notice of entry from their landlord, they may unintentionally open a window for their landlord to end the tenancy itself.

Section 47 of the RTA provides landlords with the ability to end a tenancy on one month’s notice in the event that any of the following events occur:

  • the tenant or a person permitted on the residential property by the tenant has significantly interfered with or unreasonably disturbed another occupant or the landlord of the residential property;
  • the tenant or a person permitted on the residential property by the tenant has seriously jeopardized the health or safety or a lawful right or interest of the landlord or another occupant; and
  • The tenant has failed to comply with a material term of the parties’ residential tenancy agreement and has not corrected the situation within a reasonable time after the landlord gives the tenant written notice to do so.

When it comes to selling a rental property and depending on the specific terms of the parties’ residential tenancy agreement, a landlord can issue a one month notice under section 47 of the RTA in the event their tenant:

  • Changes the locks of the rental property without prior permission
  • Physically blocks entry to the rental property after receiving a valid notice of entry;
  • Refuses access to the rental property after receiving a valid notice of entry;
  • Leaves the rental property in an unsanitary or unkept condition in advance of a showing; or
  • Harasses prospective purchasers or real estate professionals during entry times.

Say What?

Section 47 of the RTA includes further protections for landlords in the event a tenant interferes with a property sale in other more …. creative ways. If a tenant knowingly gives false information about the residential property to a purchaser viewing the residential property, then section 47 of the RTA enables a landlord to issue a one month notice to end tenancy.  When it comes to the RTA, it is important for a tenant to mind their P’s and Q’s…..

Key to Success

In housing conflicts like any conflict, communication is key.  A notice to end tenancy should only be used as a last resort for resolving landlord and tenant disputes. With this in mind, landlords should make renewed written requests to their tenant seeking their cooperation first and clearly warn them of this end of tenancy option should the tenant continue to disrupt the sale. Keeping everyone on the same page (literally!) is critical to understanding and respecting everyone’s rights during the sale of a rental property.

 

For further assistance with residential tenancy matters, please contact our practice group leader, Lisa Mackie, or a member of our Residential Tenancy Group.

<< Back to Housing