Rules Surrounding Tenanted Properties

Today we're going to talk about the new rules surrounding tenanted properties.

If you are looking to purchase a new property that currently has tenants residing in it, it's really important that you understand this and always important that you are working with a mortgage professional and a real estate agent who are able to guide you through this.

Previously, the requirements for providing a notice to vacate to a tenant was two months. So if you were buying a property that's tenanted and you wanted to move into it, they needed a two months notice before you could move into that property.

The government has recently announced that that requirement is now three months, so we have to give three months notice to the tenant, before we can move into the property ourselves. So really important that you're aware of this, that obviously that you talk with your mortgage professional and realtor to, to make sure that you understand the implications.

With that, there are some exceptions to it.

If you needed to complete the purchase early for, as an example, a lower interest rate from a mortgage lender, or perhaps the seller needs the funds earlier and you're able to negotiate a better purchase price as a result, it is possible to do that and have your possession date within that mandatory three month period. However, this comes with a few risks that are very important that you understand. Not every lender allows this.

So more than ever in that situation, talking with a realtor, mortgage broker, and especially a lawyer for legal advice is very important. If you're looking for a home and you have questions about this, our team is always here to help.

If you have more questions, please reach out to our team.

Have a beautiful day.