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8. Tenant Occupied Properties

(g) Seller To Remain as Tenant

In some cases, a seller wishes to remain as a tenant after the title has transferred to the buyer. The Residential Tenancy Act requires that all tenancy agreements be in writing and, additionally, that certain standard clauses be included in the tenancy agreement. As a result, the tenancy agreement should be a separate document from the Contract of Purchase and Sale. In addition to the clauses required in the tenancy agreement, the buyer and seller should also consider clauses relating to:

  • what is included in rent;
  • buyer access to premises — storage
  • garden maintenance;
  • insurance; and
  • notice.

However, in order to make it clear when the buyer may occupy the premises, the termination date should be settled at the time of the purchase negotiations. A clause such as the one below may be used, or for greater clarity, a tenancy agreement may be attached as a term of the offer. The benefit of attaching a completed tenancy agreement is that it leaves neither party the option of backing out of the transaction at a later date due to any uncertainty of terms.

Seller To Remain as Tenant Clause

Subject to the Seller and Buyer entering into a tenancy agreement on or before (date) for the Seller to occupy the premises as a tenant until (date) .

This condition is for the benefit of the Buyer and the Seller.

Ω If not using the standard form Contract of Purchase and Sale, refer to ‘‘Contracts under Seal