SELLING A TENANTED PROPERTY IN NSW: WHAT LANDLORDS NEED TO KNOW BY SUE STEEL With reforms to the Residential Tenancies Act 2010 (NSW) taking effect from 19 May 2025, landlords must now navigate stricter rules when selling tenanted properties. The changes strengthen tenant protections, remove "no grounds" terminations, and tighten notice. requirements. If you're looking to sell a rental property in NSW, here's what you must know. Can I Sell a Tenanted Property? Yes. You can sell at any time, but the tenancy does not end automatically. Unless the tenant is lawfully required to vacate before settlement, the buyer inherits the lease and becomes the new landlord. Requiring the Tenant to Vacate To require vacant possession, the contract for sale must state this expressly. Only after exchange can you issue a termination notice under section 87D of the Act. This notice must: Be in writing; Confirm the property has been sold and the contract requires vacant possession; Provide at least 30 days' notice; Not terminate before the fixed term ends (if applicable). Issuing notice before exchange or failing to meet these criteria renders the notice invalid. Other Notice Periods If you're not relying on the sale to terminate the tenancy: Fixed-term (over 6 months): 90 days with a valid ground. Fixed-term (6 months or less): 60 days. Periodic lease: 90 days with a valid ground. "No grounds" notices are no longer permitted - every termination must be lawfully justified. SUE STEEL Access for Inspections During marketing: Provide 14 days' written notice before the first inspection; Give 48 hours' notice before subsequent inspections (max two per week); Obtain written consent for open homes and use of tenant's belongings in advertising. Tenants are not required to vacate for inspections but must allow reasonable access. Early Vacant Possession by Agreement Landlords can negotiate early termination with tenants - often offering compensation or rent concessions. This can smooth the transition and avoid NCAT disputes. Agreements must be in writing and signed by both parties. If the Buyer Keeps the Tenant If vacant possession isn't required: The lease continues; . The buyer becomes the landlord; You must notify the tenant in writing and transfer the bond; Rent paid in advance must be apportioned at settlement. Your Obligations Post-Sale Even after settlement, you must: Serve any remaining notices (if applicable); Transfer rent records, bond, and management details; Notify the tenant about the new landlord. Failure to comply can result in disputes - even after the sale completes. Final Thoughts Selling a tenanted property remains lawful - but the process is more regulated. If the buyer needs vacant possession, you must wait until contracts exchange to issue a 30-day notice under section 87D. A 90-day "no grounds" notice is no longer an option. Need Help Navigating a Sale? Whether selling or buying a tenanted property, contact the experienced team at Stacks Law Firm Tamworth on (02) 6767 2000. 02 6767 2000 1 Fitzroy Street Tamworth STACKS stacklaw.com.au STACKS LAW FIRM AW7447235 SELLING A TENANTED PROPERTY IN NSW : WHAT LANDLORDS NEED TO KNOW BY SUE STEEL With reforms to the Residential Tenancies Act 2010 ( NSW ) taking effect from 19 May 2025 , landlords must now navigate stricter rules when selling tenanted properties . The changes strengthen tenant protections , remove " no grounds " terminations , and tighten notice . requirements . If you're looking to sell a rental property in NSW , here's what you must know . Can I Sell a Tenanted Property ? Yes . You can sell at any time , but the tenancy does not end automatically . Unless the tenant is lawfully required to vacate before settlement , the buyer inherits the lease and becomes the new landlord . Requiring the Tenant to Vacate To require vacant possession , the contract for sale must state this expressly . Only after exchange can you issue a termination notice under section 87D of the Act . This notice must : Be in writing ; Confirm the property has been sold and the contract requires vacant possession ; Provide at least 30 days ' notice ; Not terminate before the fixed term ends ( if applicable ) . Issuing notice before exchange or failing to meet these criteria renders the notice invalid . Other Notice Periods If you're not relying on the sale to terminate the tenancy : Fixed - term ( over 6 months ) : 90 days with a valid ground . Fixed - term ( 6 months or less ) : 60 days . Periodic lease : 90 days with a valid ground . " No grounds " notices are no longer permitted - every termination must be lawfully justified . SUE STEEL Access for Inspections During marketing : Provide 14 days ' written notice before the first inspection ; Give 48 hours ' notice before subsequent inspections ( max two per week ) ; Obtain written consent for open homes and use of tenant's belongings in advertising . Tenants are not required to vacate for inspections but must allow reasonable access . Early Vacant Possession by Agreement Landlords can negotiate early termination with tenants - often offering compensation or rent concessions . This can smooth the transition and avoid NCAT disputes . Agreements must be in writing and signed by both parties . If the Buyer Keeps the Tenant If vacant possession isn't required : The lease continues ; . The buyer becomes the landlord ; You must notify the tenant in writing and transfer the bond ; Rent paid in advance must be apportioned at settlement . Your Obligations Post - Sale Even after settlement , you must : Serve any remaining notices ( if applicable ) ; Transfer rent records , bond , and management details ; Notify the tenant about the new landlord . Failure to comply can result in disputes - even after the sale completes . Final Thoughts Selling a tenanted property remains lawful - but the process is more regulated . If the buyer needs vacant possession , you must wait until contracts exchange to issue a 30 - day notice under section 87D . A 90 - day " no grounds " notice is no longer an option . Need Help Navigating a Sale ? Whether selling or buying a tenanted property , contact the experienced team at Stacks Law Firm Tamworth on ( 02 ) 6767 2000 . 02 6767 2000 1 Fitzroy Street Tamworth STACKS stacklaw.com.au STACKS LAW FIRM AW7447235