Do you have a tenanted property or are thinking of becoming a landlord. Or are you looking at purchasing a tenanted home with the intent of moving in? Effective July 18, 2024, new eviction rules come into affect that will impact the process and timeline to provide notice to tenants and provide a vacant property.
The biggest changes coming are:
The biggest change is the length of time between an accepted offer to when a buyer can expect to get vacant possession. This affects everything from financing to finding accommodations in the meantime, to being able to accept compatible offers that match the needed dates if they are also selling a home.
With financing, usually pre-approvals and rate holds are only for 90 days. With these new changes, a tenant could potentially be there longer than 5 months (if they dispute), making the it difficult for buyers if they need to refinance again.
It could also make offering on a home that is tenanted more difficult if the buyers are trying to sell their own home and they have an offer on their home with a much shorter completion time. A typical possession time can be anywhere from 2-3 months for non-tenanted homes, creating a potential challenge for matching dates to move out of the old home and into the new home.
Further complications can come if the tenant decides to dispute the eviction, drawing out the process even longer. While a buyer could agree to take possession of the tenanted property and then continue the process of evicting the tenant so they can move into their new home, they also then have the new mortgage they would have to pay, which may not be covered by the current rent, and may have to juggle their own living arrangements in the meantime. They also take on the risk of a tenant dispute.
One of the ways to mitigage the risk of the dispute for the buyer who wants to have vacant possession would be required to have 30 days for the subject removal in order to know if there will be a dispute or not.
As a seller, this could potentially affect the amount of interest from buyers that have intent to live in the home since the timeline and risks have increased. The longer subject removal and possession time could also impact the seller's ability to put an offer on another property if the other sellers do not want such a long closing or want to work with sellers who don't have a firm offer on their own property.
If you are thinking of seling or buying a tenanted property, speak to your real estate professional about strategies that address these concerns.
For full details of the changes new eviction rules click here: https://membernews.gvrealtors.ca/standards-knowledge/landlords-required-to-use-new-website-to-create-personal-use-evi.html
The biggest changes coming are:
- 4 months notice will be requied now, up from 2 months notice for owner-occupation
- a 30-day dispute window,
- mandatory 12-month occupany of the new owner - up from 6 months.
- higher penalites for bad-faith evictions
- Landlords required to use new website to create personal-use eviction notices, and more
The biggest change is the length of time between an accepted offer to when a buyer can expect to get vacant possession. This affects everything from financing to finding accommodations in the meantime, to being able to accept compatible offers that match the needed dates if they are also selling a home.
With financing, usually pre-approvals and rate holds are only for 90 days. With these new changes, a tenant could potentially be there longer than 5 months (if they dispute), making the it difficult for buyers if they need to refinance again.
It could also make offering on a home that is tenanted more difficult if the buyers are trying to sell their own home and they have an offer on their home with a much shorter completion time. A typical possession time can be anywhere from 2-3 months for non-tenanted homes, creating a potential challenge for matching dates to move out of the old home and into the new home.
Further complications can come if the tenant decides to dispute the eviction, drawing out the process even longer. While a buyer could agree to take possession of the tenanted property and then continue the process of evicting the tenant so they can move into their new home, they also then have the new mortgage they would have to pay, which may not be covered by the current rent, and may have to juggle their own living arrangements in the meantime. They also take on the risk of a tenant dispute.
One of the ways to mitigage the risk of the dispute for the buyer who wants to have vacant possession would be required to have 30 days for the subject removal in order to know if there will be a dispute or not.
As a seller, this could potentially affect the amount of interest from buyers that have intent to live in the home since the timeline and risks have increased. The longer subject removal and possession time could also impact the seller's ability to put an offer on another property if the other sellers do not want such a long closing or want to work with sellers who don't have a firm offer on their own property.
If you are thinking of seling or buying a tenanted property, speak to your real estate professional about strategies that address these concerns.
For full details of the changes new eviction rules click here: https://membernews.gvrealtors.ca/standards-knowledge/landlords-required-to-use-new-website-to-create-personal-use-evi.html