Property owners can sell a property with a sitting tenant and the tenant would then have to move out. In case the property is sold with the tenants and the tenancy continues, the tenants will be classified as “tenants in situ” and the new property owner will be required to deal with the tenancy deposit.
The current property owner and new owner must work together to continue to protect the tenancy deposit.
It has been a legal requirement since 2019 for property owners to follow strict rules regarding deposits. In England, security deposits are restricted to five weeks’ rent for tenancies with annual rents less than £50,000, or six weeks’ rent for rents more than £50,000.
The property owner must return the deposit to the tenant within 10 days of the final deposit if the property owner decides to sell the property.
How does this impact the tenancy agreement?
The tenancy agreement will remain the same, but the name of the new property owner would be added onto the agreement instead.
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