muddypuddle

Looking for advice please...

We moved into our place in Vancouver on March 1st - it is a new house that the developer had not been able to sell. We have had no issues with the landlord so far but I am aware that they've been having some cash flow problems.

As a result they are now planning to sell the house (at a bit of a discount), with us as tenants. We have a one year lease which reverts to month to month from March 1st next year.
When we negotiated the rent with the current landlord we agreed to pay 6 months in advance for the first year (i.e. 2 payments each of 6 months rent) - in return we are getting a very good deal on the rental value. We have receipts etc, however, the tenancy contract states monthly payments.

I just wondered what the situation would be if someone else takes over the tenancy - can they revise the rental value? Can they kick us out?

With 2 young kids we could also do without lots and lots of viewings...

Cdnshaz

You need to look into the landlord and tenant act for your province.
Now I am a landlord in Ont, and I know there the new owner cannot kick you out, they must give you 60 days notice, now I would think that as you have paid rent in advance the landlord you have now should pay you back that amount. Or give it to the new owners..

Again check out the L&T act to get accurate advice.

ESarge

IANAL and nor do I play one on TV. This is not legal advice and if you're really worried you should talk to RTO.

Government Residential Tenancy Act Guidebook
BC Residential Tenancy Act

RTA (2002) S49(2)(c) if the tenancy agreement is a fixed term tenancy agreement, not earlier than the date specified as the end of the tenancy.

RTA (2002) SS 41, 42, 43. Rent cannot be increased less than 12 months after moving in and, even then, only by the percentage the government allows.

Conclusion:
You should be fine. The effect of the sale is that your landlord assigns his rights to the purchaser. The purchase still remains bound by the original agreement so you're fine until March next year.

Re: viewings: The handbook discusses this and it's basically up to you. I suggest you think up a schedule that works for you and provide that to the landlord. Work out something that seems reasonable.

Now, I would be very paranoid here. Keep everything in writing and keep your wits about you.

I really don't like the 6 months in advance thing and am surprised it's legal. Strangely, I couldn't find any clause against it.

JonboyE

Sales of property with sitting tenants happen all the time. The worst case is that the new owner will give you 60 days notice plus a month's rent if they intend to use the property themselves.

Your rental contract is not invalidated just because the current owner sells the place.

The first link that Esarge gives has all the information you need, in an easily digestible form.

Hopefully you have documentary evidence of the rent you have paid in advance. If so, then you should not need to worry.

ESarge

That's not even the worst case in this situation. As it's a fixed term tenancy (assuming they have written proof) then they can't be asked to move out until after the fixed term ends.

JonboyE

Good point.

muddypuddle

Thanks all.

We do have receipts etc and have now met with the Realtor who is coordinating the sale.

I've also now checked and at worst, we can stay until the end of our lease (Feb 28th) and the further 2 months notice, with one month rent free.

It seems quite unlikely that the house would be bought as an investment with us as tenants, as we are paying quite a lot below the going rate (in lieu of the 6 months up front). And as a private purchaser wouldn't be able to move in until end April that route seems unlikely also.

At the Realtor's request we have advised our Landlord (in writing) of what would be acceptable to us by way of a compensation payment should we agree to terminate early to facilitate the sale.

Given that if the situation was reversed and we wanted to walk away from the property the landlord could insist that we paid the full rent to the end of the fixed term, we've used that (and a few incidentals) as our starting position.

I'll let you know how things go - all in all its really not ideal as decent rentals in our preferred area are thin on the ground...