Buying or selling a tenanted property in BC can be complex, especially when the new owner wants to move in. One of the key tools under the Residential Tenancy Act (RTA) is the 3-Month Notice to End Tenancy for Purchaser’s Use of Property. This notice allows a buyer to end a tenancy so they (or a close family member) can occupy the home.
Here’s what both landlords and tenants need to know:
When Can a 3-Month Notice Be Used?
The notice is only valid if:
- The property has already been sold.
- The purchaser (or their close family member) intends to move into the property.
- The tenancy is month-to-month (this notice cannot be used to end a fixed-term tenancy before it naturally expires).
Rules for Landlords and Purchasers
- Official Form: The notice must be served using the RTB-approved form.
- Timeline: Tenants must receive at least three full months’ notice before the end of a rental period.
- Compensation: The tenant must receive one month’s rent (or the equivalent) as compensation
- Good Faith Requirement: The purchaser must genuinely plan to move in. Ending a tenancy without following through can result in penalties.
Tenant Rights
- Disputing the Notice: Tenants have 21 days from the date they receive the notice to dispute it with the Residential Tenancy Branch.
- Bad Faith Compensation: If the purchaser doesn’t move in and instead re-rents the property, tenants may be entitled to up to 12 months’ rent as compensation.
What This Means for You
- Sellers: If you’re selling a tenanted property, you can serve the 3-Month Notice once the sale is unconditional, provided the buyer (or their family) intends to move in. This can make the transition smoother for both buyer and tenant.
- Buyers: Plan your move carefully. Ensure you use the correct form, provide compensation, and give the proper amount of notice.
- Tenants: If you receive this notice, know that you have rights and options. Confirm the timing, compensation, and whether you wish to dispute it.
➤ Questions about how to properly give notice? Contact us at info@brixpm.ca