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Patrick H.
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Category: Australia Law
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Experience:  Dip Law LPAB - Sydney based lawyer
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I am purchasing a property that is currently tentanted for

Resolved Question:

I am purchasing a property that is currently tentanted for 6 months after the Settlement date.
Is there any way to terminate the lease agreement or do I have to honour the existing lease agreement.
Submitted: 1 year ago.
Category: Australia Law
Expert:  replied 1 year ago.
Hello and thank you for your question.

Generally speaking, if you are on notice of a lease when you buy a property you are obliged to honour it as the new landlord.

What you can do, however, is try to negotiate an arrangement with the tenant to end it early. Likely you could offer them a financial inducement of some sort, or to meet their costs of relocating.

Just puting them on notice that you do not intend to renew the lease may induce them to start looking elsewhere and provided you make it clear you would not object to their terminating the lease early, this may allow them to accept a property they find well before the lease was scheduled to end.

In short, you cannot legally force the end of the lease just because you are the new owner, but if you can try to secure the tenants agreement to an early termination.

I trust the above assists.

Please rate my answer so I can be paid for my answer.

Thanks and good luck,

Patrick
Patrick H., Lawyer
Category: Australia Law
Satisfied Customers: 4517
Experience: Dip Law LPAB - Sydney based lawyer
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