If your property is sold while a tenant is leasing it in Victoria, the lease doesn’t automatically end. The new owner inherits the existing lease agreement and becomes the landlord, assuming all rights and responsibilities as of December 2025.
Currently in Melbourne, a fixed-term lease continues until its expiry date, regardless of the property sale. The tenant has the right to remain in the property until the lease ends. A sale doesn’t provide grounds for a landlord to terminate a lease early. However, if the lease is periodic (month-to-month), the new owner must provide the legally required notice period – currently 60 days – to regain possession. As of December 2025, we’re seeing a strong rental market in the Eastern Suburbs, particularly around areas like Balwyn and Doncaster, meaning tenants are often keen to stay put. Sellers preparing for a sale in 2026 should factor in the potential for a continued tenancy and discuss this with their agent. Fletchers’ experience shows that transparent communication with tenants throughout the sales process is key to a smooth transition. Preparing a property for sale – including styling which can cost between $2,000 and $8,000 – often happens *after* the lease concludes, to maximise presentation for potential buyers.
Essentially, a property sale transfers ownership, not the tenancy agreement, and Victorian tenancy laws protect the tenant’s rights.