What happens to a lease when a property sells?

Good question!

If you are wanting to move into the property at settlement, please ensure that you have checked the lease agreement terms before placing an offer on the property.

Periodical Lease – The term periodical lease means that tenants lease has expired and they are living in the home month to month. You are able to give the tenants 30 days notice to vacate. Usually, good practice is to ensure that finance is approved and all conditions are met prior to giving notice to the tenant to ensure that the purchase is moving forward.

Fixed Term Lease – If the tenant has a lease agreement in place eg expiring 2025, the buyer is required to honor the lease until the expiry date OR the tenant must mutually agreed to vacate the property before settlement.

The sale of a property does not overwrite a lease agreement. When looking for property to purchase ensure you have asked the question, when does the tenants lease expire and is this going to work with our plans?