Selling a Rented Property in BC

A sale is not one of the ways a tenancy ends under the Residential Tenancy Act (s.44(1)). The buyer becomes the landlord as your successor in title (s.1, definition of "landlord"). The tenant keeps the same agreement, keeps paying rent, and keeps the same rights.

You can end the tenancy for the buyer only with a purchaser's use notice, and only when the buyer or a close family member will live in the unit. The rest of this guide covers what passes to the buyer, how that notice works, and what you can and cannot do during a sale. Disputes go to the Residential Tenancy Branch (RTB).

• The deposit. A landlord's obligations about a security deposit or pet damage deposit run with the land (s.93). The new owner is bound to return the deposit. The research did not cover how the money is handed over, so settle that in the sale with a licensed legal professional.
• Rent increase timing. The 12 month rule counts from the last legal increase "even if there is a new landlord" (Regulation Schedule s.6(1)). A new owner cannot raise rent early. Any increase follows the normal notice and cap rules. See raising rent in BC.
• A fixed term. The existing agreement carries on to its end, with the buyer as landlord.

Pass your tenancy agreement, any condition inspection report and the deposit details to the buyer. Our guide on security deposits for BC landlords explains what the deposit is for.

If the buyer or a close family member wants to live in the unit, the buyer asks you to end the tenancy and you give the notice. Steps:

1. Confirm the buyer or a close family member intends to occupy the unit.
2. Check the building size. See the five unit limit in the next section.
3. Generate the Three Month Notice, Form RTB-32P, through the RTB web portal. The RTB says a notice for a purchaser's use on or after July 18, 2024 must be generated this way.
4. Give three months' notice. For notices generated on or after August 21, 2024, the tenant has 21 days to dispute. Older notices keep their old periods (Regulation s.42.4).
5. Pay the tenant one month's rent as compensation on or before the effective date (Act s.51(1)). The tenant may withhold that amount from the last month's rent (s.51(1.1)).

A tenant who does not dispute in time is treated as having accepted that the tenancy ends on the effective date (s.49(9)). A tenant on a periodic tenancy may also end it earlier by giving at least 10 days' written notice (s.50(1)(a)). The RTB guideline says a landlord's use notice cannot end a fixed term before the term ends; ask the RTB how that timing applies to a purchaser's use notice if your tenant has a fixed term. See the RTB landlord notice page.

The Act bars a landlord from giving a notice for personal or purchaser's use if the building has 5 or more rental units and is either not strata titled, or is strata titled with all rental units owned by the same owner (s.49(6.1), unless the regulations say otherwise). Use the statute wording, because the RTB page words it differently.

There are costs if the stated purpose is not carried out. The tenant is owed another 12 months' rent (s.51(2), subject to exceptions). RTB Policy Guideline 2B says that, except for demolition, the unit must be used for the stated purpose for at least 12 months beginning within a reasonable period after the effective date, for notices given on or after April 3, 2024.

For wider rules on ending tenancies, read notices to end a tenancy for BC landlords. The Ask page on a landlord moving back in covers the similar own-use case.

Showings follow the entry rules in the Act. Unless you and the tenant agree a showing schedule in writing, you must give 24 hours' written notice for each showing. The notice cannot be sent by text message. You or your agent must be present. You cannot use a lock box without the tenant's permission. The tenant may be present but cannot be required to leave.

Ordinary entry notice (s.29) is written notice at least 24 hours and no more than 30 days before entry, stating a reasonable purpose and a date and time between 8 a.m. and 9 p.m. unless the tenant otherwise agrees. A tenant must allow access after proper notice but may refuse entry that is unreasonable or unlawful. More in what to do when a BC tenant refuses entry and the Ask page on landlord entry.

• You cannot end the tenancy just because the home is listed or sold. Only a valid notice, an agreement or an RTB order ends it.
• You cannot change the locks unless the tenant agrees and you provide new keys (s.31(1.1)).
• You cannot push the tenant out by force. Only the BC Supreme Court and authorized bailiffs enforce an order of possession, and illegal eviction can bring a penalty of up to $5,000 plus the tenant's costs.
• You cannot give a purchaser's use notice in a building covered by the 5 unit bar.

If a court issues an Order for the Conduct of Sale in a foreclosure, the RTB says the tenant must still pay rent and must move out by the possession date in the order. No court order in a foreclosure, estate or matrimonial case is enforceable against a tenant who was not a party to it (s.94).

If a landlord dies, the tenancy continues. The executor or administrator becomes the new landlord with the rights and obligations under the agreement, and the tenant keeps paying rent. See the RTB special circumstances page.

This guide explains the rules in general terms; for a specific case, ask the tribunal or a licensed legal professional.