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When purchasing a property with an existing tenant, it's essential to understand the rights and responsibilities that transfer to you as the new owner. The presence of a tenant impacts various aspects of property ownership, from when you can take possession to how rental agreements are managed. Properly navigating these factors can help ensure a smooth transition and avoid potential legal or financial issues after settlement.

What does it mean if the property is sold subject to lease?

If the contract of sale is subject to lease, it means any tenant occupying the premises will remain after settlement is complete, continuing to pay rent to the new owner. The new owner will be unable to move into the property until the tenancy agreement period ends or the tenancy is lawfully terminated. All terms contained in the tenancy agreement will apply to you from settlement date onwards.