A landlord signs an agreement to sell a tenanted house. The agreement is still conditional on the buyer's finance, but it requires vacant possession on settlement. Can the property manager give the periodic tenant 42 days' notice now?
Correct Answer
C) No; the 42-day ground applies only once the sale is unconditional.
Section 51(2)(b) allows 42 days' notice where the owner is required, under an unconditional agreement for sale, to give the buyer vacant possession. While the agreement is conditional, the landlord can give 90 days' notice under s 51(1) or wait until the agreement is unconditional.
Why This Is the Correct Answer
The sale ground in s 51(2)(b) needs an unconditional agreement.
Why the Other Options Are Wrong
Option A: Yes; any signed sale agreement requiring vacant possession is enough for 42 days.
Section 51(2)(b) requires an unconditional agreement, so a conditional one does not qualify yet.
Option B: Yes, if the tenant is also given a copy of the sale and purchase agreement.
Giving a copy does not replace the unconditional requirement in s 51(2)(b).
Option D: No; a landlord selling a property must always give the tenant 90 days' notice.
A seller can use 42 days once the agreement is unconditional; 90 days is only the no-ground option.
Background Knowledge for Property Management
Source: https://www.legislation.govt.nz/act/public/1986/0120/latest/whole.html
Exam Tip for Property Management
Sale ground for 42 days: unconditional and vacant possession required.
Common Mistakes to Avoid on Property Management Questions
- •Issuing a 42-day notice as soon as a conditional offer is signed.
More Property Management Questions
How long does a landlord have to lodge a bond with Tenancy Services after receiving it from a tenant?
Which of the following is a mandatory requirement for all rental properties under the Healthy Homes standards?
A periodic tenancy began 8 months ago and the rent has never been raised. If the landlord gives written notice today, when is the earliest a rent increase can take effect?
A property manager discovers a tenant has been subletting rooms without permission for 6 months, generating significant income. The head tenant is otherwise compliant and rent is current. What factors would most influence the Tenancy Tribunal's decision on termination?
Under the Residential Tenancies Act 1986, what is the most a landlord can charge as a general bond (not counting any separate pet bond)?
- → Which of the following is NOT a mandatory requirement for tenancy agreements under the Residential Tenancies Act?
- → How much notice must a landlord give a tenant before conducting a routine property inspection?
- → A tenant has given 21 days' notice to terminate a periodic tenancy but wants to leave 5 days early. What must happen for this to be legally acceptable?
- → A tenant claims bond refund for $1,200 but the landlord disputes $400 for carpet cleaning. The tenant disagrees and applies to the Tenancy Tribunal. What happens to the bond during this dispute?
- → How often may a landlord carry out routine inspections during a tenancy?
- → A landlord wants to increase rent for a periodic tenancy. What is the minimum notice period they must give?
- → During a property inspection, a property manager discovers the tenant has installed a spa pool without permission. What is the most appropriate first step?
- → By what date did all private rental properties in New Zealand have to comply with the healthy homes standards?
- → A property manager conducts an inspection and finds the tenant has installed a heat pump without permission. The tenancy agreement prohibits alterations without consent. What can the landlord legally require?
- → During a property inspection, a landlord notices the tenant has changed the locks. Under what circumstances is this legally permitted?
People Also Study
Property Law & Legislation
56 questions
Agency Practice
89 questions
Sale & Purchase Process
63 questions
Professional Conduct & Ethics
46 questions