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Owning, renting & land use · BC real estate answers

What happens to the tenants when you buy a rented home in BC?

Why the tenancy continues, how a purchaser’s use notice is given, and the timing that affects your completion date.

Stone Group Real Estate Team · Benny Jain PREC · Reviewed

The short answer

The tenancy continues after the sale, with the buyer as the new landlord on the same terms. If you or a close family member will live there, the seller can serve a portal-generated Three Month Notice to End Tenancy for Purchaser’s Use once all conditions of the sale are satisfied and you ask in writing. The tenant has 21 days to dispute it and receives one month’s rent as compensation, and you must then live there at least 12 months.

Check current rules: Notice periods changed on August 21, 2024 (from four months to three for purchaser’s use) and the web-portal requirement started July 18, 2024. Check the Residential Tenancy Branch before you set dates.

In plain English

A sale does not end a tenancy.

The Province is direct about it: once a property is sold, the buyer becomes the new landlord and tenancies continue under the same terms.

A landlord also cannot end a tenancy simply because they want to sell, and if nobody serves a proper notice, the tenancy just carries on.

There are two ways a tenancy can end so the buyer can move in. Before completion, the buyer gives the seller a written request to end the tenancy because the buyer or a close family member will occupy the unit, and the seller serves a Three Month Notice to End Tenancy for Purchaser’s Use, form RTB-32P. Or, after taking possession, the new landlord serves a Three Month Notice to End Tenancy for Landlord’s Use, form RTB-32L.

Who counts as close family matters.

The Residential Tenancy Act defines a close family member as the purchaser’s spouse, or the parents or children of the purchaser or the purchaser’s spouse. Brothers and sisters do not count. The occupation has to be residential and in good faith.

The paperwork has to be exact.

Notices must be generated through the Residential Tenancy Branch web portal; any other notice form is legally unenforceable. The landlord will need birthdates for the people involved.

Serving the notice cannot be made a condition of the sale, and the seller can only serve it once all conditions of the sale have been satisfied.

Tenants have rights during the process.

They have 21 days to dispute a three-month notice. The landlord must pay compensation equal to one month’s rent on or before the effective date, or the tenant can choose not to pay the last month’s rent.

After the tenancy ends, the purchaser or close family member must live in the unit for at least 12 months, starting within a reasonable period.

Money held for the tenant follows the property.

Whoever owns the property when the tenant moves out is responsible for returning the security deposit or pet damage deposit, so the buyer may become responsible for deposits the seller collected.

The Province suggests dealing with deposits held in trust, and any money the tenant owes the seller, in the contract of purchase and sale.

How it works

  1. Decide whether you will live there or keep the tenant

    If you will keep the tenancy, review the tenancy agreement, rent and deposits before you remove subjects.

  2. Put the plan and dates in your contract

    Your completion date needs to leave room for a three-month notice served only after all conditions are satisfied.

  3. Give the seller a written request after subjects are removed

    State that you or a close family member intend in good faith to occupy the unit.

  4. Make sure the seller generates RTB-32P on the portal

    A notice that was not generated through the Residential Tenancy Branch web portal is unenforceable.

  5. Plan for the 21-day dispute window and compensation

    The tenant may apply for dispute resolution within 21 days. One month’s rent compensation is owed on or before the effective date.

  6. Deal with deposits on completion

    Ask your lawyer or notary to account for the tenant’s security and pet deposits in the closing adjustments.

Example

Assume monthly rent of $2,400. The rent is an assumption; the rule is that the tenant receives an amount equal to one month’s rent.

Compensation owed with a three-month notice
Monthly rent (assumed)$2,400
Compensation owed with the notice: 1 × monthly rent$2,400
Minimum notice period3 months
Tenant’s dispute window after receiving the notice21 days

The tenant may instead withhold the last month’s rent. Compensation is owed even if the tenant gives notice to leave earlier.

Who it applies to, and the exceptions

Usually applies to

  • Buyers of houses, suites, condos or townhouses with a tenant in place.
  • Sellers of tenanted property who receive a buyer’s written request.
  • Buyers whose spouse, parent or child, or their spouse’s parent or child, will move in.

Exceptions and limits

  • A sister, brother or other relative moving in is not a close family member under the rule.
  • Notices for purchaser’s use generated before August 21, 2024 required four months’ notice and a 30-day dispute period.
  • Ending a tenancy for demolition, major renovation or conversion uses a separate four-month notice with its own conditions and a 30-day dispute period.

Common mistakes

  • Setting a completion date that does not leave room for three months’ notice after subjects are removed.
  • Making the notice a condition of the sale. The Province says serving it cannot be a condition.
  • Using a downloaded or homemade form instead of a portal-generated RTB form.
  • Forgetting the 12-month occupancy requirement when planning a short stay.
  • Not accounting for the tenant’s security and pet deposits in the closing documents.

Questions people also ask

Does a lease end when the house is sold in BC?

No. The buyer becomes the new landlord and the tenancy continues under the same terms unless a proper notice ends it.

How much notice does a tenant get if the buyer wants to move in?

Three months for notices generated on or after August 21, 2024, using a Three Month Notice to End Tenancy for Purchaser’s Use or Landlord’s Use.

Who counts as a close family member?

Under the Residential Tenancy Act, the purchaser’s spouse, or the parents or children of the purchaser or the purchaser’s spouse. Brothers and sisters do not qualify.

Can the tenant dispute the notice?

Yes. Tenants have 21 days after receiving a three-month notice to apply for dispute resolution.

How long must the buyer live in the home after the tenant leaves?

At least 12 months, beginning within a reasonable period after the notice’s effective date.

Who returns the tenant’s security deposit after a sale?

Whoever owns the property when the tenant moves out, which may be the buyer. Address deposits in the contract or closing settlement.

Official sources

Facts on this page come from the official sources below, reviewed October 6, 2026. Rules, amounts and dates change; confirm the current version and your own eligibility before acting. This is general information, not legal, tax or financial advice.

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