New and Important Information Regarding Tenanted Properties

The BC Provincial government has recently announced the official date for the amount of notice required to evict tenants for personal use.

Currently in British Columbia the requirement is 2 months' notice with 1 month's rent as compensation, which can be provided by offering the second month free or as a financial reimbursement equal to one month's rent.

Effective July 18, 2024 the amount of notice landlords must provide tenants for personal use will be increased to 4 months, still with 1 month’s rent as compensation (so far).
Landlords will also be required to use a web portal to create the notice which the government will use for future audits.

This is important if you are looking to buy or sell a tenant occupied property.

Promising vacant possession can be problematic so when selling a tenanted property be sure to follow the Residential Tenancy Act to the letter and use the mandatory web portal. The direction that we as Realtors have been given is to make the contract ‘subject to the existing tenancy’ so that you are not held liable if for some reason the tenants choose not to leave.
This clause enables all parties to go through the proper channels in order to provide tenants with the proper notice.

When buying a rented property be sure to understand that when you are asking the seller to provide notice to tenants to vacate the property on your behalf you MUST be intending to either move in yourself or have a close family member move in.
Removing a tenant with the intent to re rent a property at current market rates is illegal and as per the aforementioned ‘portal’, Big Brother is indeed watching and big penalties will be applied for wrongful eviction.

Also note that when you secure a property your rate hold with the bank typically lasts for 90 days. Obviously the 4 month period exceeds that, so in an environment where interest rates are increasing this is something to take into consideration when finalizing the offer.
This is where you need a professional mortgage broker to help you navigate situations such as this.

This will also significantly extend your move in date so please oh please raise your right hand and repeat after me:

"I will not go out and finance a furniture or appliance package between subject removal and closing.
Nor will I go and buy a car or book an expensive holiday on my Visa".

Deal?
Any of these actions can impact your ability to proceed with the mortgage you originally had qualified for at the time of committing to the purchase (ie subject removal).

You can do any or all of that the day after you move in ;)

Here’s a link where you can read all about this in government speak.
If you have any questions please reach out to me.

Behind each and every transaction is a story and a process.❤️
Take a behind-the-scenes look at my home-selling process.
⬇️⬇️⬇️



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