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Foye Legal’s Senior Associate Sarah Abrahams reviews the recent changes to minimum notice periods for residential tenancy, impacting vendors and purchasers of residential land.
On 19 May 2025 some major changes of rental laws were implemented.
Under the changes to the Residential Tenancy Act a Notice to Vacate can be issued either:
- Before contracts are exchanged giving the tenant at least 90 days for a period agreement; or
- After contracts are exchanged giving the tenant at least 30 days for a period agreement.
As a guide Sarah advises the following:
Giving tenants notice to vacate before contracts are exchanged
If you are preparing to sell your property and want the tenant to depart before contracts are exchanged or before the sale is complete then you may now, under the changes to the Residential Tenancy Act, serve a Notice to Vacate on the tenant once you have a marketing contract prepared or signed an agency agreement giving the tenant at least 90 days to vacate if the tenancy is a period agreement (e.g. a month to month tenancy) or if it is a fixed term agreement of more than 6 months. If a tenant has a fixed term agreement 6 months or less then the notice period is reduced to 60 days.
Giving tenants notice to vacate after contracts are exchanged
If you are selling residential property with an existing tenancy and the purchaser wants to buy it with vacant possession it is now possible to accommodate this request. Under the changes to the Residential Tenancy Act after contracts are exchanged a tenant (no matter the length of their tenancy agreement) can be required to vacate the property 30 days’ after receiving the required notice and supporting information.
If you are buying and want a tenant to vacate before settlement, under the changes to the Residential Tenancy Act you can ask the vendor to serve on the tenant after contracts are exchanged with the required 30 days’ notice to vacate the property.
Things to consider
Consider if you want time to do (or the vendor to do in the case of a purchaser) an end of tenancy property inspection, any repairs, and if you are a purchaser if you want to be able to inspect the property with vacant possession before you settle.
It is important speak to your solicitor about what happens if a tenant has not vacated before the settlement date and the contract says it is subject to ‘vacant possession’ so you understand your rights and responsibilities and the process involved to evict a tenant who doesn’t want to comply with the notice to vacate.
Care needs to be taken when setting the date for completion of the contract so that any notice period given to tenants has expired before settle.
It is also important to obtain the correct legal advice about what obligations a purchaser should take on if they want to settle early before the notice period to the tenant has not expired so that the contract includes appropriate provisions to protects the seller in those circumstances.
Sarah Abrahams expertise across Property & Conveyancing can support you through your next property transaction.
Contact Foye Legal today for a confidential discussion.