In a sale with tenant in situ, the property changes hands while the tenant keeps living there. The buyer steps into the seller’s shoes as landlord, inheriting the tenancy on its existing terms, including the rent, the remaining term and any obligations the seller took on.
Who it suits
Investors often prefer this kind of purchase because rent starts flowing from day one and there is no void period. It also suits sellers who cannot, or prefer not to, end a tenancy before selling; in Jamaica, removing a residential tenant can take time where the Rent Restriction Act applies, as it requires a valid ground and, if the tenant stays, a court order.
What the buyer should check
Ask for a copy of the written tenancy agreement, a rent ledger showing payments and any arrears, and details of the security deposit and who will hold it after completion. The agreement for sale should say how rent for the month of completion is apportioned and that the deposit is transferred to the buyer. Confirm whether the premises have been registered with or assessed by the Rent Assessment Board, since that can affect what rent may lawfully be charged. Where possible, meet the tenant or arrange an inspection.
Buyers who want to live in the home later should not assume they can end the tenancy simply because ownership has changed.
Related terms: Vacant Possession, Tenant, Landlord, The Rent Restriction Act, Rental Security Deposit, Tenancy Agreement.
Accurate as at October 2026.
