On July 3, 2024, the Provincial Government announced significant changes that came into effect July 18, 2024, to protect residential tenants from ending tenancies in bad faith. Under the Residential Tenancy Act, a landlord can end a tenancy for personal or caretaker use.

As you navigate the complexities of selling tenant-occupied properties, it's crucial to be aware of the latest regulations, including Bill 14 Tenancy Statutes Amendment Act, 2024, and best practices to ensure compliance and protect all parties involved. Here are the key points you need to know.

Key Changes Effective July 18, 2024

1. Mandatory Use of Landlord Use of New Web Portal:

• Landlords must use this portal to generate Notices to End Tenancy for personal or caretaker use.

• Landlords using the website portal will be required to have a Basic BCeID to access the site.

• The portal will require landlords to provide details about the persons moving into the home. The details of the new occupant of the home will be shared with the tenant.

• While using the website portal, landlords will be given information about the required conditions for ending a tenancy and the penalties associated with ending the tenancy in bad faith.

• They will also be informed about the amount of compensation they will be required to issue to tenants when ending a tenancy.

2. Extended Notice Period:

• The Two-Month Notice is changing to a Four-Month Notice on July 18, 2024.

• Tenants will have 30 days to dispute Notices to End Tenancy, extended from 15 days.

3. Occupancy Requirements:

• The individual moving into the property must occupy it for at least 12 months.

• Landlords found to be ending a tenancy in bad faith could be ordered to pay the displaced tenant 12 months’ rent.

We need to be aware of these new rules when we are buying or selling tenant-occupied properties if the buyer wants vacant possession (whether on the completion date or otherwise). Any notice to end a tenancy for the buyer’s personal use given to a tenant on or after July 18, 2024, cannot end the tenancy until after the expiration of the four-month notice period. 

How do the new requirements impact an offer on a home when rent is paid on the first of each month? If all contract subjects were satisfied or waived on July 22, 2024, a Four-Month Notice to tenants using the portal’s notice generator could be provided on or before July 31, 2024, and could require the tenant to vacate the home by November 31, 2024.

What if the tenant does not vacate the home? As has always been the case with tenant-occupied properties, sellers and buyers should be advised to obtain legal advice to ensure they understand their rights and responsibilities in circumstances when a tenant does not comply with a notice to vacate and remains in the home after the date that the tenancy was supposed to end.

Legal Advice for Ongoing Transactions
If you are currently in the middle of a transaction involving a tenant-occupied property, it is strongly advised to seek legal advice to navigate these new regulations effectively. Legal advice can help ensure compliance with the transition to the new rules and protect the interests of all parties involved by informing them of their rights and obligations arising under the new rules.

Additional Resources:

• For more details on the new regulations and to access the Landlord Use Web Portal, visit BC Government Residential Tenancies or contact the Residential Tenancy Branch at 1-800-665-8779.

• Selling Tenant-Occupied Properties During the Residential Tenancy Act Transitional Period.

• Legally Speaking #574: Landlords Take Notice – Recent Amendments to BC Tenancy Legislation by Amy Peck.

• BrokerConnect (June 2024): Bill 14 Tenancy Statutes Amendment Act.

Real Estate Errors and Omissions Insurance Corporation: Selling tenanted property – don’t let assumptions get you into a tough situation.

For more information, please contact: Gino Pezzani.