Important Update: Selling Tenant-Occupied Properties

Good afternoon, Investors and Landlords,

On July 3, 2024, the Provincial Government announced significant changes that took effect on July 18, 2024, aimed at protecting residential tenants from ending tenancies in bad faith. Under the Residential Tenancy Act, landlords can end a tenancy for personal use or for caretaker use.

As you navigate the complexities of selling tenant-occupied properties, it’s crucial to be aware of the latest regulations, including Bill 14 Tenancy Statutes Amendment Act, 2024, and best practices to ensure compliance and protect all parties involved. Here are the key points you need to know.

Key Changes Effective July 18, 2024

Mandatory Use of Landlord Use Web Portal:

• Landlords must use this portal to generate Notices to End Tenancy for personal or caretaker use.
• Access requires a Basic BCeID.
• The portal will collect details about the new occupant, which will be shared with the tenant.
• Information about the conditions for ending a tenancy and associated penalties will be provided.
• Landlords will be informed about the compensation required to issue to tenants when ending a tenancy.

Extended Notice Period:

• The Two-Month Notice is changing to a Four-Month Notice.
• Tenants now have 30 days to dispute Notices to End Tenancy, extended from 15 days.

Occupancy Requirements:

• The individual moving into the property must occupy it for at least 12 months.
• Landlords ending a tenancy in bad faith could be ordered to pay the displaced tenant 12 months’ rent.

Considerations for Selling Tenant-Occupied Properties

Investors and landlords need to be aware of these new rules when dealing with tenant-occupied properties if the buyer wants vacant possession. Any notice to end a tenancy for the buyer’s personal use given to a tenant on or after July 18, 2024, cannot end the tenancy until after the expiration of the four-month notice period.

Example Scenario:

• If all contract subjects were satisfied or waived on July 22, 2024, a Four-Month Notice to tenants using the portal’s notice generator could be provided on or before July 31, 2024, requiring the tenant to vacate the home by November 30, 2024.

Handling Non-Compliance:

• If the tenant does not vacate the home, sellers and buyers should seek legal advice to understand their rights and responsibilities.

Legal Advice for Ongoing Transactions

For transactions involving tenant-occupied properties currently underway, seeking legal advice is strongly recommended to navigate these new regulations effectively. Legal counsel can help ensure compliance and protect the interests of all parties involved by clarifying their rights and obligations under the new rules.

Additional Resources:

• For more details on the new regulations and to access the Landlord Use Web Portal, visit BC Government Residential Tenancies.
• Contact the Residential Tenancy Branch at 1-800-665-8779.