Tenancy Clauses LU2017 - Sec3 - Unit3 - ProfessionalToolkit

Real Estate E&O Insurance Legal Update 2017
1. A number of clauses, which are provided by the Council’s Professional Standards Manual,
that can be used in the Contract of Purchase and Sale, when dealing with tenant-occupied
properties.
CONFIRMATION OF TENANCY DETAILS CLAUSE

The Seller warrants that (tenant’s name) is a (type of tenancy); the monthly rent
is $ (amount) including (utilities included); payable on (day of the month rent
is due) a security deposit of $ (amount) was taken on (date) and the last rental
increase was (date).
NOTICE TO TENANTS CLAUSE

The Seller will give legal notice to the Tenant to vacate the premises, but only if
the Seller receives the appropriate written request from the Buyer to give such
notice in accordance with the requirements of section 49 of the Residential
Tenancy Act.
PROPERTIES CONTAINING UNAUTHORIZED ACCOMMODATION CLAUSE

The Buyer is aware that the property contains unauthorized accommodation and
has been informed of the consequences of such ownership and the potential
loss of income should the rental use be discontinued.
P RO FE SS I ON AL TOO LK IT
SELLER TO REMAIN AS TENANT CLAUSE

Subject to the Seller and Buyer entering into a tenancy agreement on or before
(date) for the Seller to occupy the premises as a tenant until (date).
This condition is for the benefit of the Buyer and the Seller.
2. The Residential Tenancy Branch’s website, which offers some useful resources for licensees,
landlords and tenants, is located at: http://www2.gov.bc.ca/gov/content/housing-tenancy/
residential-tenancies.
1
S ECTI O N 3 Residential Property Issues
3. As recommended by Council, in the Professional Standards Manual, here is a list of considerations

for licensees to keep in mind when their clients, in the course of a sale of tenanted property,
wish to negotiate the early termination of a tenancy agreement:
◆ Until the title has transferred to the buyer, the only entitled person to give notice to the
tenant is the seller or landlord.
◆ All conditions of the contract must have been removed, before a landlord can give written
notice to the tenant on behalf of the buyer.
◆ Notice to terminate a tenancy when the rental unit has been purchased occurs when:
–– either the buyer or a close family member wishes to occupy the rental unit, or
–– if the buyer is a family corporation, and a person owning voting shares in the corporation, or
a close family member intends to occupy the rental unit.
◆ Two months’ notice must be provided to terminate a tenancy according to the Residential
Tenancy Act. In the case of a fixed-term tenancy, the date of termination may not be earlier
than the specified end date of the tenancy.
◆ If the landlord has terminated the tenancy because:
–– the rental unit is to be occupied by the landlord, or a family member, or a buyer,
–– the landlord intends to demolish, renovate or convert the premises to strata lots, not-for-
profiting housing, a caretaker’s suite, or to non-residential use.
◆ The landlord must pay the tenant before the effective date of the notice to terminate, an
equivalent amount to one month’s rent.
◆ If the landlord has not taken the above steps to carry out the intended purpose for ending
the tenancy within a reasonable time, or the rental suite is not used for one of the stated
PRO FESS I O N AL TO O LK IT
purposes above, for at least six months, the landlord or buyer must pay the tenant an
equivalent amount to two months’ rent.
◆ Licensees must ensure that the tenant’s compensation, that must be paid if the landlord is
required to provide end of tenancy notice on the buyer’s behalf, is negotiated between the
buyer and seller at the time the Contract of Purchase and Sale of the rental unit is entered into.
4. The provincial government website provides information sheets for tenants and landlords on
everything they need to know including: tenancy agreement requirements, security deposits,
condition inspections, rent payments, and maintenance.
Please visit: http://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/
tools-and-resources/information-sheets.

Tenancy Clauses LU2017 - Sec3 - Unit3 - ProfessionalToolkit

Uploaded by

Copyright:

Available Formats

Tenancy Clauses LU2017 - Sec3 - Unit3 - ProfessionalToolkit

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Tenancy Clauses LU2017 - Sec3 - Unit3 - ProfessionalToolkit

Uploaded by

Copyright:

Available Formats

Real Estate E&O Insurance Legal Update 2017

CONFIRMATION OF TENANCY DETAILS CLAUSE

NOTICE TO TENANTS CLAUSE

PROPERTIES CONTAINING UNAUTHORIZED ACCOMMODATION CLAUSE

SELLER TO REMAIN AS TENANT CLAUSE

3. As recommended by Council, in the Professional Standards Manual, here is a list of considerations

You might also like