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Can a landlord terminate the lease to sell the property?

What are your rights and responsibilities when you, as landlord, wish to terminate the rental agreement in order to sell the property? The answer depends on several factors and legalities.

Grounds for termination

For every termination of the rental agreement by landlord, there must be a legal ground for termination. There are only a few of those, but (intention of) selling the property is not one of them. Termination of the rental period for this specific reason can only be done if the property was rented out under the Vacancy Act. Or if the rental period was concluded for a short term (maximum 2 years), for which landlord has a notification period of termination.
But in most cases, the landlord cannot simply terminate the rental agreement if he/she wishes to sell the property. This means that the tenant has the right to stay in the property, even after the property is sold. The well-known motto “koop breekt geen huur” applies, meaning exactly that.

Selling a rented property

However, it is possible for a landlord to sell the property in rented condition, so including the tenant and ongoing tenancy agreement. The property is then sold as an investment. The new owner becomes the new landlord. The current tenant will continue paying rent to the new owner and can remain in the property, so long as the new owner respects the tenancy agreement.

Intention of selling

To sell a rented property, the landlord must follow certain procedures. The tenant must be informed of these intentions and is expected to cooperate in granting potential buyers acces to view the property. Not complying with these rules may lead to judicial issues for landlord.

In short, although selling the property does not automatically give a landlord the right to terminate the lease, there are options for selling the property with the tenant still living in it. However, it’s essential to understand the legal necessities and procedures to avoid any conflict and guarantee a smooth transition for both landlord and tenant.

When in doubt, it’s always wise to gain legal advice or contact an experienced letting agent.

Are you looking for more information? Contact us directly.

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