The NDP government is shortening the eviction notice period for landlords selling their property after pushback from the housing industry that argued the new rules are a barrier for homebuyers trying to buy a tenanted property.
On Thursday, the B.C. Housing Ministry announced it is changing the notice period required when a landlord issues a notice to end tenancy on behalf of a purchaser to three months — down from four months — and cutting the dispute period from 30 days to 21 days.
The new rules take effect on Aug. 21.
B.C. changed the eviction notice period two months after government regulations meant to address bad-faith evictions kicked in on July 18.
Under those regulations, landlords and homebuyers were required to give tenants four months’ notice instead of the previous two months when evicting for personal use.
But the change presented headaches for homebuyers, particularly for first-time homebuyers purchasing a home under a Canada Mortgage and Housing Corporation program, which require a property to be vacant at the time of possession.
Those rules were brought in with no consultation from the housing industry, said Vancouver realtor Steve Saretsky. “It was a bit of a head scratcher.”
“If you’re a first-time homebuyer going through a CMHC insurance program, the government doesn’t allow you to inherit the tenant,” he said. “You have to get vacant possession, but how are you going to get vacant possession if you can’t get vacant possession for four months?
“You’re basically asking a buyer to go unconditional on a purchase without secured financing, which is incredibly risky.”
The four-month notice period also affected buyers whose mortgage holds — typically 120 days — with their banks expired before the closing date.
Three months’ notice “is a lot better than four,” said Saretsky about the tweak, calling it a “happy medium.”
The change only applies in cases where the property is being sold.
Landlords who plan to move into the rental property or have a close family member move in are still required to give a four-month notice period for personal-use evictions. Tenants will still have 30 days to dispute the notice.
The person moving into the home is required to live in it for at least 12 months.
According to the Housing Ministry, waiting times for fast-tracked disputes such as over unpaid rent and/or utilities have decreased from 10.5 weeks in February to just over four weeks in May, which allows for quicker resolutions for landlords.
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