When a Property Is Sold… What Happens to Your Lease?
Few things unsettle renters more than hearing “the property is being sold.” It’s a scenario that conjures images of forced moves and uncertainty. But take heart: in Australia, a sale does not mean you automatically have to move out. Your lease carries legal weight that doesn’t evaporate when the “For Sale” sign goes up. In fact, tenancy laws in every state provide protections so that tenants aren’t left high and dry when the landlord decides to sell. This post breaks down exactly what your rights are… and how to navigate the process with confidence and clarity.
Is it time to move?
Sale Sign on the Lawn? Don’t Panic
First, the most important principle: a rental agreement doesn’t end just because the property is sold. The buyer effectively “steps into the shoes” of the former owner. If you have a fixed-term lease, the new owner must honour that lease until it ends, they become your landlord under the same terms you already agreed. As the Queensland RTA plainly puts it, selling a rental doesn’t break the tenancy; the buyer takes on the agreement in place.
In NSW, likewise, any fixed-term lease (typically leases up to 3 years) survives the sale – the tenant can’t be evicted simply due to change of ownership. This means if you signed a 12-month lease and you have, say, 5 months remaining when the sale goes through, you are entitled to stay for those 5 months under the same rent and conditions. The selling landlord or the new owner cannot just kick you out because of the sale. What if you’re on a periodic tenancy (month-to-month)?
Here it gets a bit more state-specific, but generally the new owner can request vacant possession only by following the proper notice procedures. In most states, that means giving you a written termination notice with a specified minimum notice period. For example:
In Queensland, if the buyer wants the home empty, the current owner/property manager must give you at least 2 months’ notice after the contract of sale is signed (for a periodic agreement). You wouldn’t have to leave until that notice period expires.
In New South Wales, historically a 30-day notice could be given to a month-to-month tenant if a contract of sale required vacant possession (otherwise, no-grounds notices were 90 days). As of 2025, NSW has reformed “no grounds” evictions, but selling the property remains a valid ground – typically still with a minimum 30 days’ notice for periodic leases if vacant possession is required at settlement.
In Victoria, a periodic (or end-of-fixed-term) tenant can be asked to vacate with at least 60 days’ notice if there’s a signed contract of sale with vacant possession requirement. Importantly, even then, the termination date on the notice cannot be before the end date of a fixed-term lease – so they can’t cut short a fixed term because of a sale.
Each state has its nuances, but the theme is: you must be given proper written notice and sufficient time if you’re to move due to a sale. No overnight surprises allowed. If the notice isn’t given correctly (wrong form, or not enough notice days), it may be invalid. Tenants’ advocates often advise getting advice if you receive a notice – just to ensure it’s lawful. But remember, if you have a fixed-term lease, you generally cannot be forced out until it expires, unless you agree to go earlier (and you might negotiate compensation in that case).
Access for Open Homes and Inspections: Your Rights
When a property goes on the market, there’s often a flurry of activity: real estate agents arranging photos, hosting viewings for potential buyers, etc. Yes, the owner has a right to show the property – but your rights to privacy and quiet enjoyment remain firmly in place.
In practical terms, this means a few things:
Reasonable Notice: The landlord (or their agent) must give you notice each time they want to bring someone through. In NSW, for instance, the law requires that you get at least 14 days’ advance notice before the first showing can take place, and each entry after that needs proper notice (usually 48 hours for each specific showing).
Other states have similar provisions – generally you’ll see something like 24 to 48 hours’ notice required for entry to show prospective buyers. If they spring an impromptu inspection on you without notice, you’re within your rights to say “not right now.”
Reasonable Times & Frequency: Inspections should be at reasonable hours (middle of the night is off-limits, of course) and not excessive in number. The law often uses words like “a reasonable number of times”. So, multiple open houses every weekend without your agreement would be pushing it. You can negotiate set days/times that suit both parties. In fact, Tenants NSW suggests writing to the landlord to agree on convenient viewing times (e.g. perhaps Tuesdays 5-6pm and Saturdays 11am-12pm). This can prevent constant disruptions. If an agreement can’t be reached, the Tribunal can decide what’s fair – but usually common sense and courtesy prevail.
Presence and Privacy: You absolutely have the right to be present during showings if you want. Many tenants feel more comfortable being home (it is your home, after all) when strangers are coming through. And that’s completely fine. Also, your peace and privacy should be respected – the landlord or agent should not conduct open houses or auctions in your living room without permission.
It’s worth noting that during this process, your obligation is simply to continue paying rent and maintain the property as per your lease. You are not obligated to do extra cleaning or “style” the home for sale (though keeping it reasonably tidy for inspections is both courteous and in your interest, since mountains of mess might encourage a buyer-landlord to think you’re a problem).
Some tenants worry: “If I don’t cooperate, can they evict me?”
The answer: not without proper grounds. Simply asserting your rights (like insisting on proper notice or refusing an unreasonable time) is not a valid ground for eviction. In fact, retaliatory eviction is illegal – if a landlord tried to end your tenancy because you stood up for your rights during a sale, you could challenge that as a retaliatory action. So don’t be afraid to voice reasonable boundaries.
When the New Owner Steps into the Landlord’s Shoes
Once the property is sold and settlement happens, you’ll get formally notified of the new owner’s details. Typically, the outgoing owner or agent will send you an “attornment notice” or letter advising that as of X date, the property has new owners, and giving you contact info and instructions for rent payments going forward. From that point, your bond should be transferred to the new owner’s name (behind the scenes with the bond authority), and you just continue the lease as usual, only with a different person to call landlord. A few things to keep in mind at this stage:
Your Lease, Your Shield: All the terms of your lease remain the same with the new landlord. They can’t suddenly hike the rent or change the length of the lease just because they are now in charge. Any rent increases still must follow normal rules (generally, they can’t increase rent during a fixed term unless the contract allowed it and proper notice is given). The RTA Qld explicitly notes that a change of owner does not affect rent increase rules – a new owner can’t sidestep the 12-month limit on raises, for instance. In short, new landlord, same rules.
Lease Continuation or Renewal: If you were mid fixed-term, you’ll likely ride that out and then perhaps negotiate a renewal with the new owner when the time comes. If you were periodic, the new owner might approach you for a fresh fixed-term lease – feel free to negotiate terms or decide if you want that commitment. (Some buyers actually prefer to keep good tenants on; you might even negotiate a minor rent reduction or improvement as a condition of signing a new lease with them.)
Option to Move: Sometimes, even though you don’t have to move, you might choose to. Perhaps the property is being marketed as “vacant possession” and the agent/owner is keen to have it empty (they might even offer you an incentive to leave early – like free rent for a few weeks or paying your moving costs). You are not obliged to accept such an offer, but if your situation allows and the deal is good for you, you can certainly negotiate an early end to your lease. Just be sure to get any agreement in writing, including any compensation, and ideally only hand back keys once that compensation is received to avoid misunderstandings.
One special scenario: if the property was put on the market very soon after you moved in and you weren’t told before signing the lease that a sale was forthcoming. Some states give tenants an “out” in this case. For example, in Queensland if the property is advertised for sale or entry for inspections occurs in the first 2 months of your tenancy without prior disclosure, you have the right to break the lease with only 2 weeks’ notice (no penalty). This protects renters from being lured into a lease without knowing they’d be living in a showroom. So if you just unpacked boxes and suddenly there’s a sale sign that you had no clue about, check your state’s rules – you might be allowed to terminate early if you want.
Staying Empowered During the Sale Process
The overarching advice when your rental is being sold is this: stay informed, know your rights, and communicate. It’s easy to feel anxious, but armed with the knowledge above, you actually hold a lot of cards. The law seeks to balance the owner’s right to sell with your right to a home.
Communicate with the Agent: Often, the real estate agent handling the sale will liaise with you for inspections. Don’t hesitate to let them know your preferences (e.g., “Fridays after 4pm are tough due to work, but I can do Saturday mornings”). Most agents would rather work with a cooperative tenant than antagonize you – it makes their job easier too. You might even set some ground rules, like requiring appointments for viewings (no random drop-ins), and asking that they ensure prospective buyers don’t photograph your personal belongings (a courtesy agents should observe).
Keep Paying Rent: Sounds obvious, but during uncertain times some tenants wonder if they can withhold rent as leverage. The answer is no – sales process or not, your tenancy obligations stay the same. Keeping your record perfect gives the landlord (old or new) no excuse to issue any breach notices against you.
Document Issues: If the sale process causes any problems – say frequent open houses leave your place not secure or something gets damaged – document it and raise it immediately. The landlord is still responsible for your peace and the property’s condition. For instance, if an enthusiastic viewer accidentally breaks a light fixture, the landlord should fix that. Fortunately, such incidents are rare, but it’s good to be attentive.
Help is Available
Above all, remember you are not alone in this process. If at any point you feel your rights are being trampled (perhaps you’re getting harassing frequent visits, or a notice to vacate that seems suspect), reach out for help. Tenants’ unions and local tenancy advocacy services can provide advice specific to your situation. They can clarify if a notice is valid or help you draft a response. The Tenants’ Union of NSW, for example, has resources on “landlord selling” scenarios and encourages tenants to get advice if unsure. Similar bodies exist in every state.
In conclusion, a property sale can certainly introduce some uncertainty, but it should never strip you of the roof over your head without due process. Australian laws give renters a clear path to either stay through the sale or, if required, ample time to relocate. By staying calm, informed, and assertive, you can navigate the “For Sale” period without it derailing your life.
Tenant empowerment is all about knowledge and tools. Just as knowing your lease rights protects you during a sale, knowing your market power protects you during rent negotiations. If a new owner (or any landlord) tries to impose an unfair rent hike, remember you have options. Consider using SaveMyRent: it’s designed to help Australian renters negotiate rent increases on fair terms, using data and expert negotiation so you don’t have to go it alone.
Whether your home is under new management or not, you deserve a fair deal. Stay informed, stay empowered, and rest easy – a “sold” sticker on the sign doesn’t mean your security is sold out.
