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Selling an Investment Property with a Tenant in It: The Queensland Guide

Every legal step for owners and agents. Forms 9, 10 and 12. The Stage 2 reforms. Entry and photography rules. Sale with tenant in situ or sale with vacant possession. Contract, bond and settlement handover.

Selling a tenanted property in Queensland is more legally dense than a standard vacant-possession sale. The owner must balance their right to sell against the tenant's right to quiet enjoyment of the property. The Queensland tenancy framework has changed substantially through the 2022 and 2024 reforms, and many agents and owners are still operating on outdated assumptions about what they can and cannot do.

This article walks through every legal step for both the owner (lessor) and the sales agent. It assumes a standard general tenancy under the Residential Tenancies and Rooming Accommodation Act 2008 (Qld), which covers the vast majority of Brisbane investment properties.

The legal framework, briefly

Three pieces of Queensland legislation govern the sale of a tenanted property.

• Residential Tenancies and Rooming Accommodation Act 2008 (Qld), usually shortened to the RTRA Act. This governs the tenancy itself: entry rights, notice periods, termination grounds, and the tenant's right to quiet enjoyment.
• Property Occupations Act 2014 (Qld). This governs the sales agent's relationship with the vendor (the Form 6 authority), disclosure obligations, and commission.
• Property Law Act 1974 (Qld) and the REIQ Standard Contract. These govern the contract of sale itself, including how the tenancy is dealt with on transfer.

Since 2022, two major waves of reform have changed the tenancy side. Stage 1 (from 1 October 2022) introduced pet approval rules, minimum housing standards, and domestic violence protections. Stage 2 (from 6 June 2024 and 30 September 2024) removed "without grounds" terminations entirely. An owner can no longer end a tenancy simply because they want to; a specific, legally recognised ground is required. "Sale of property" is one of those specific grounds, but it now has tighter conditions than many owners remember.

Step 1. Before you list: the owner's pre-sale decision

The first decision is whether to sell with the tenant in place, or to end the tenancy first and sell with vacant possession.

Fixed-term lease still running

If the tenant is on a fixed-term lease that has not yet ended, the owner cannot force the tenant out in order to sell. The lease runs to its end date. Two realistic options apply.

• Sell with tenant in situ, subject to the existing tenancy. The buyer inherits the lease on the same terms. The sale still proceeds, but the property can only be marketed to investor buyers or owner-occupiers willing to wait for the lease to end. Price usually sits a few percent below vacant possession.
• Negotiate an early end with the tenant. Under the RTRA Act, a fixed-term tenancy can only be ended early by mutual agreement, breach, or a prescribed ground. An owner can offer the tenant a financial inducement (waived final week's rent, removal costs) to sign a mutual agreement to end the tenancy. Document this in a signed termination agreement.

Periodic (month-to-month) tenancy

Under the Stage 2 reforms, a lessor can end a periodic tenancy using the "sale of premises" ground. This requires:

• A Notice to Leave (Form 12) citing "sale of premises" as the ground.
• A minimum of two months' notice.
• The property must actually be listed for sale (not just an intention).

The "no grounds" termination that was common before 2024 is no longer available. An owner who ends a periodic tenancy using the sale ground and then does not actually sell the property within a reasonable time risks dispute action from the former tenant. Do not use this ground as a workaround for an unrelated termination.

The financial trade-off

A tenanted sale produces a sale price that is usually 2 to 5 percent below a vacant-possession sale of the same property, depending on tenant cooperation. That gap is wider for owner-occupier-appeal properties (houses, character homes) and narrower or zero for investor-appeal properties (units, dual-occ). A cooperative tenant who keeps the home tidy and accommodates inspections reduces the gap. A hostile or uncooperative tenant widens it. The retained rent during the campaign partially offsets the price gap, but rarely fully. Run the numbers before deciding.

Step 2. The owner's first legal action: Form 10

Once the owner decides to sell, the first formal legal step under the RTRA Act is the Form 10 Notice of Lessor's Intention to Sell Premises. This is the tenant's formal notification that the property is going to market.

Form 10 must be served before or at the same time as the first Form 9 Entry Notice for a prospective purchaser. This is mandatory under the Act. A Form 9 served before a Form 10 is invalid, and an agent entering on an invalid notice is exposed to a breach complaint.

Form 10 must include the name and contact details of the sales agent and the intended marketing approach (private treaty, auction, or expressions of interest). The tenant is entitled to know who will be entering the property and how the property will be shown.

If the owner lists the property within the first two months of the tenancy and the tenant was not told in writing at the time they signed the lease that the property was going to be sold, the tenant has a right to end the agreement without penalty. This is a statutory right under the RTRA Act. An owner who buys an investment with an intention to sell soon after must disclose that intention in the lease.

Step 3. The agent's first legal action: coordination with the property manager

The sales agent (let us call them the "selling agent" to distinguish from the "renting agent" or "property manager") has their own legal obligations under the RTRA Act, separate from the owner's. These obligations exist whether the agent is engaged through the same agency as the property manager or a different one.

The first step is a written agreement with the property manager covering how entries will be coordinated. The selling agent, as a secondary agent in the RTRA Act's language, must give the property manager a copy of the Form 10 before any entry occurs. In practice this means the selling agent signs the Form 10 as a co-notifying party or coordinates with the property manager to jointly serve it.

Many Brisbane sales stall at this point because the property manager is a different agency and communication breaks down. The owner should insist on a three-way email introduction at the outset: owner, property manager, selling agent. This avoids the common problem of entries being arranged with the tenant but the property manager not being informed, which is a breach of the RTRA Act regardless of tenant consent.

Step 4. Preparing the property: photography and marketing

The RTRA Act places clear limits on marketing a tenanted property.

• Photography of the tenant's possessions requires written consent. If the property is furnished by the tenant and photographs will be used in marketing, the tenant must consent in writing to each photograph that shows their belongings. In practice, agents often propose styling the home for photography before inspections begin. Styling always requires the tenant's cooperation.
• Floor plans and video fly-throughs showing the tenant's possessions are treated the same way. Written consent required.
• "For Sale" boards outside the property do not require tenant consent, but the tenant is entitled to know one is being erected.
• Digital marketing that does not show the tenant's possessions (exterior shots, professionally-styled rooms) does not require tenant consent beyond the standard Form 10 notification.

A well-run campaign has these consents documented in writing before photography day. Verbal consent is not sufficient if a dispute arises.

Step 5. Entry for buyer inspections: the Form 9 rules

Each entry to the property for the purpose of showing a prospective purchaser requires a separate Form 9 Entry Notice. The rules are strict.

• Minimum 24 hours' notice before the planned entry.
• Form 9 must specify the date and time window of the intended entry. A vague "sometime Wednesday" is not sufficient.
• Entry can only occur on a day other than Sunday or a public holiday, and only between 8am and 6pm, unless the tenant agrees otherwise in writing.
• If a Form 12 Notice to Leave has been issued, entry is limited to no more than twice in any 7-day period.
• The tenant has the right to be present during entry. The tenant is not required to vacate the property during an inspection.

Open homes require tenant consent (critical)

This is where many agents get it wrong. An open home is not a prescribed reason for entry under section 192 of the RTRA Act. A Form 9 Entry Notice is sufficient for a private inspection with one or two specific buyers, but not sufficient for an open home. Under section 204 of the Act, the lessor or agent must obtain the tenant's consent in writing to hold an open home at the property.

The tenant can refuse without providing a reason. A refused open home cannot go ahead, regardless of how inconvenient this is for the campaign. In practice, this is a significant commercial consideration when selling tenanted property: if the tenant will not consent to open homes, the campaign must rely on private inspections only, which substantially limits the buyer pool and the competitive pressure at play.

A competent selling agent raises this question with the property manager and tenant before the Form 10 is served. Tenant willingness to accommodate opens should shape the marketing strategy. A tenant who will not consent to opens effectively narrows the campaign to private-treaty-by-appointment, which most agents accept but which will usually produce a lower final price.

On-site auctions also require tenant consent

An on-site auction cannot be held on a tenanted property without the tenant's written consent. The same section 204 rule applies. Off-site auctions (at an auction centre, for example) do not require tenant consent because the tenant's property is not being used for the event. The property itself would still need final pre-auction inspections, which follow the standard Form 9 rules.

Step 6. Managing the tenant relationship during the campaign

The RTRA Act requires the owner and agent to respect the tenant's quiet enjoyment of the property. This is not just good manners; it is a statutory obligation that can result in a compensation order if breached.

Practical behaviours that avoid breaches:

• Group inspections into fewer, longer windows rather than many short entries. Two 45-minute inspection windows per week are less disruptive than five 15-minute entries.
• Confirm each entry by phone or SMS with the tenant in addition to the Form 9. Not a legal requirement, but it builds cooperation.
• Provide written notice of the auction date or EOI close date so the tenant knows when the campaign will end.
• Consider a rent reduction during the active campaign period. Not legally required but commercially sensible for a tenant whose life is being disrupted.
• Do not enter in the tenant's absence unless they have explicitly agreed in writing. Some tenants consent to this for convenience; do not assume.

If the tenant believes their quiet enjoyment has been breached (repeated late-notice entries, entries outside the notice window, unauthorised photography), they can apply to the Queensland Civil and Administrative Tribunal (QCAT) for a compensation order. Owners can be ordered to refund rent or pay compensation. Agents can face regulatory action separately.

Step 7. Handling offers and the contract of sale

When an offer is received, the contract of sale needs to handle the tenancy explicitly. The REIQ standard residential contract provides fields for tenancy details, but the parties must populate them correctly.

Sale subject to existing tenancy

If the buyer is taking the property with the tenant in place, the contract should include:

• A copy of the current lease agreement, dated.
• The current rent, paid-to date, and next rent review date.
• The bond amount currently held with the RTA.
• The property manager's details (if any).
• Any known issues: outstanding maintenance, pet approvals, breach history.

At settlement, the lease assigns to the buyer as the new lessor. The bond held at the RTA must be transferred to the new lessor. This is done through the RTA's Form 4 (Bond Transfer) after settlement. The tenant does not need to consent to the lease assigning; the tenancy continues on the same terms, with only the lessor identity changing.

Sale with vacant possession

If the seller has undertaken to deliver vacant possession at settlement, the contract should specify:

• The date vacant possession will be delivered (usually the settlement date).
• How the existing tenancy will be ended: Form 12 on the "sale of premises" ground with two months' notice, or by mutual agreement.
• The consequence if vacant possession is not delivered by settlement. This is usually a right for the buyer to rescind, or a daily penalty.

The risk with a vacant-possession contract is that the owner has committed to the buyer before the tenancy is actually ended. If the tenant does not leave voluntarily at the end of the notice period, the owner may need to apply to QCAT for a warrant of possession. This can take weeks and delay settlement. Always build a contingency into the settlement date.

Step 8. Settlement and handover

Settlement on a tenanted property adjusts several items.

• Rent apportionment. Rent paid in advance of settlement day is apportioned between the seller (for the portion up to settlement) and the buyer (for the portion after). This appears on the settlement statement.
• Bond transfer. The RTA-held bond must be transferred to the buyer as the new lessor. Both parties sign the RTA's bond transfer form and lodge it with the RTA after settlement.
• Keys and property condition report. The tenant retains possession; the buyer receives a copy of the current lease, the original Entry Condition Report, and any inspection reports. Keys to the property that are NOT held by the tenant (e.g. a spare set held by the property manager) transfer to the buyer.
• Tenant notification. The seller's property manager or the seller directly should notify the tenant of the new lessor's identity and payment details within a reasonable time of settlement. A letter to the tenant with the new banking details and the new property manager's contact is the standard approach.
• Land tax clearance. As with any investment property sale, a land tax clearance certificate should be obtained from QRO before settlement. If outstanding land tax is owed, it can be adjusted on the settlement statement.

Agent-side checklist

For the selling agent, the legal steps in order are:

1. Confirm tenancy details in writing with the property manager: lease term, rent, bond, paid-to date.
2. Draft the Form 10 Notice of Lessor's Intention to Sell. Coordinate service with the property manager.
3. Discuss open home and photography consent with the property manager and tenant. Document consent in writing.
4. Agree on inspection timing and frequency with the tenant before issuing any Form 9.
5. Issue Form 9 Entry Notices with at least 24 hours' notice for every scheduled entry. Do not issue a Form 9 for an open home; secure a separate written consent.
6. Respect entry timing (no Sundays, no public holidays, 8am to 6pm unless the tenant agrees otherwise).
7. If a Form 12 Notice to Leave is served by the owner on sale grounds, reduce entry frequency to a maximum of two in any seven-day period.
8. On contract signing, disclose the tenancy details in the contract. Attach the lease and Entry Condition Report.
9. Coordinate bond transfer and rent apportionment with the solicitor before settlement.
10. Brief the buyer (in writing) on the Form 4 bond transfer process and the notification obligations to the tenant after settlement.

Owner-side checklist

1. Review the current lease. Identify fixed-term end date and any break-clause terms.
2. Discuss the sale with the property manager. Decide tenanted vs vacant. Run the financial numbers (see the Tenanted vs Vacant tool on this site).
3. Brief the tenant in writing. A respectful pre-listing conversation before formal notices sets the tone.
4. Serve the Form 10 Notice of Lessor's Intention to Sell through the property manager or selling agent.
5. If ending the tenancy: serve Form 12 Notice to Leave on sale grounds with two months' notice. Document the listing actually occurring within a reasonable period after the notice.
6. Engage a sales agent under a Form 6 authority. The Form 6 should note the property is tenanted and the intended approach to marketing.
7. Agree the marketing strategy with the selling agent before photography. Write tenant consents and agree inspection timings.
8. Arrange a land tax clearance certificate through your conveyancer as the contract progresses.
9. At settlement, coordinate bond transfer, rent apportionment, and tenant notification with your conveyancer and property manager.

Common mistakes

• Entering on a Form 9 for an open home. The Form 9 is for private inspections. Open homes require separate written tenant consent.
• Failing to serve Form 10 before the first Form 9. The entry is invalid without the prior Form 10.
• Photographing tenants' possessions without written consent. This is a breach regardless of how professional the photography looks.
• Using the old "without grounds" termination. Removed by Stage 2 reforms. Owners must use a specific ground such as "sale of premises" with the correct notice period.
• Trying to end a fixed-term lease early to sell vacant. Not permitted under the RTRA Act. Requires mutual agreement or a prescribed ground.
• Selling inside the first 2 months of a new tenancy without prior disclosure in the lease. Gives the tenant a statutory right to end the agreement.
• Bond not transferred at settlement. The bond stays with the RTA but the lessor identity must be updated via the Form 4 after settlement. A forgotten transfer creates problems the first time the tenant vacates under the new owner.
• Property manager not kept in the loop. Breaches the selling agent's obligation to the renting agent and frustrates the tenant relationship.

Commercial reality, not just legal theory

The rules above are the compliance floor. The best-run tenanted sales add a layer of commercial sense on top. A tenant who feels respected and informed is a tenant who will accommodate inspections, keep the home presentable, and not raise issues at inspection that damage the sale. A tenant who feels harassed will quite legally refuse open homes, provide only minimum access, and potentially flag the property with their support agencies.

The commercial difference between the two outcomes is usually tens of thousands of dollars on the sale price. That is worth a pre-listing coffee with the tenant, a small rent reduction during the active campaign, and a written commitment to stick to the entry schedule. This is not legally required. It is commercially rational.

Sources and references

• Residential Tenancies Authority, "When a property is for sale". rta.qld.gov.au. Accessed April 2026.
• Residential Tenancies Authority, Form 10 Notice of Lessor's Intention to Sell Premises. rta.qld.gov.au.
• Residential Tenancies Authority, Form 9 Entry Notice. rta.qld.gov.au.
• Residential Tenancies Authority, Rules of Entry, General Tenancies. rta.qld.gov.au.
• Queensland Government Department of Housing, Rental Law Changes. housing.qld.gov.au.
• REIQ, "Managing the new entry restrictions: Residential sales". reiq.com.
• Residential Tenancies and Rooming Accommodation Act 2008 (Qld), particularly ss 192, 199, 204 on entry and ss 291 onward on notice to leave.

This article is general information, not legal advice. Tenancy law in Queensland is subject to change and individual circumstances can alter how the rules apply. Consult a solicitor, your property manager, and the RTA for advice specific to your property and situation.