FAQ – “My client is buying an older home that is currently tenanted. Their plan is to gut it, renovate it, and then convert to strata. We have put in the standard clause for the current owner to give notice to vacate for “owner use” after subjects have been removed. Is there anything else I need to be concerned about in this situation?”
In this video Steve Jamieson, Managing Broker of RE/MAX Crest Realty Westside, describes the nuances of the Residential Tenancy Act and the conditions that have to be met before a buyer can end a tenancy for substantial renovations.
Here’s a brief summary:
Whoa, Nelly! You’re on the wrong track!
Most commonly we see the “Two month notice to end tenancy” being used if the landlord plans, in good faith, to use the property. This applies when the landlord:
- Moves in or has a close family member live in the rental unit
- Sells the property and the new owner, or a close family member of the new owner, plans to live in the rental unit
In these circumstances (provided it is not a fixed-term tenancy), a buyer may make a written request to the seller to end the tenancy before they become the owner of the property. You must include the “Notice to Tenants” clause in your Contract of Purchase and Sale to ensure that the buyer has the right to make this request.
However, in this scenario the tenancy is being ended for a different purpose; major construction. Only the landlord can give notice for major construction, and the buyer does not become the landlord until they take possession. Furthermore, the landlord (buyer) must have all required government permits and approvals in place before issuing the notice to end tenancy for substantial renovations, and the buyer cannot apply for the permits until they complete on their purchase. See the conundrum? This can all turn out be a lengthy process.
For more information about the Two Month Notice to End Tenancy, including compensation and fixed term tenancies, refer to the BC Government website.
Please note: The Frequently Asked Question video series is used for training purposes within our group of RE/MAX offices. If you are licensed at a different brokerage, you must refer to your own Managing Broker for advice.