Navigating responsibilities in property sales with tenancy agreements

Selling a property with an existing tenancy agreement involves a set of specific responsibilities for both the seller and the selling agent. Understanding and adhering to these obligations is crucial to ensuring a smooth and legally compliant transaction.

Responsibilities of the Selling Agent

Form 10 Compliance: Before initiating any direct contact or marketing efforts, the selling agent is required to ensure that a Form 10 is signed and sent to the tenant. This step is essential in maintaining transparency and communication throughout the selling process.

Form 9 Notifications: Prior to conducting any property inspections, the selling agent must send Form 9 notifications to both tenants and property managers. This proactive measure helps in scheduling inspections while respecting the rights and privacy of the tenants.

Legal Adherence: Throughout the sales process, the selling agent must strictly adhere to the regulations outlined in the Residential Tenancies and Rooming Accommodation Act (RTA) and the Property Occupations Act. This ensures that all actions are in compliance with the governing laws, promoting a fair and lawful transaction.

Responsibilities of the Seller

Document Sharing: Sellers are obligated to provide copies of all relevant tenancy documents, including tenant ledgers, certificates, and agreements, to their legal representative. This documentation is crucial for the legal team to navigate the complexities of the existing tenancy arrangement.

Notice Authorisation: Sellers must authorise their property manager to issue any required notices and promptly provide copies of these notices to their legal representative. This step ensures that all parties involved are informed of any necessary actions within the bounds of the law.

Communication Facilitation: Sellers are responsible for sharing any correspondence received from property managers and/or tenants with their legal representative. Open communication channels help in addressing potential issues and concerns, contributing to a transparent and well-managed sales process.

Conveyancer Details: Providing the property manager with details of the conveyancer is essential for arranging rental adjustments. This collaboration ensures that financial aspects related to the tenancy are handled seamlessly during the property sale.

Adhering to the above is not only a legal requirement but also a strategic approach to minimise last-minute hiccups during the settlement process. By understanding and fulfilling their respective responsibilities, both sellers and selling agents contribute to a transparent, legally compliant, and successful property sale with an existing tenancy.

Thank you to Rebecca Petroff from Sunstate Conveyancing for sharing this very important information with us.