“What happens to a fixed-term lease agreement if I sell my property before the lease is up?” – Matthew
Understanding the fixed-term agreement
We asked managing director at Real Property Manager, John Gilmovich for his advice:
“A fixed term lease is a binding contract for the period of time stipulated in the lease agreement,” John said.
“A landlord who sells their property cannot end the agreement earlier than the fixed term expiry date unless the tenant mutually consents to do so.”
John said in this instance, the lease is transferred upon the settlement of the property to the new owner.
“If the lease is a periodic agreement, then the tenant can be served with 30 days notice once the contract for sale has exchanged and if the contract is subject to vacant possession,” he said.
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