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When Realtors overstep: The dangers of giving tenancy advice

“Don’t worry, your Realtor knows what they’re doing.”

That reassurance didn’t age well.

Our clients had rented their home for a few years before planning to sell. Aside from a couple of parking bylaw infractions and routine inspections, the tenancy had been uneventful until early 2025. 

The tenant’s insurance lapsed—often a sign they’re preparing to move—and our clients saw an opportunity to sell the unit vacant. Clients were upfront: if the tenant left, they’d list immediately to avoid the pricing drag of a tenanted sale. As our clients were up against a looming mortgage renewal, adding urgency to the decision, they were listing whether the tenants were moving or not.

Our client’s Realtor was introduced to the tenants; photos and showings were coordinated. The tenants even confirmed a move-out date per the realtor. We reached out to the tenants to get a written notice to vacate and to schedule the move-out inspection.

Then everything went sideways.

The tenants, it turned out, were confused and stressed. They believed they were required to move, though no legal notice had been served. The Realtor had given them misleading information about ending the tenancy, prompting panic and pressure on all sides. Three months later, no firm move-out date, strained relationships, and multiple retracted notices have left everyone frustrated.

The reason for the chaos? A well-meaning Realtor communicated incorrect information to the tenants.

 

The broader problem

 

This isn’t rare.

Real estate agents can wade into tenancy law with confidence but without clarity. We have had Realtors quote their “legal department” or try to advise tenants on their rights, and the result is confusion, frustration, and potential liability. Even when well-meaning and trying to help, these missteps can:

  • Lead to tenant complaints and harassment claims
  • Damage trust between owners, tenants and property managers
  • Result in verbal agreements with no legal basis
  • Undermine lawful evictions and disrupt closing timelines

In B.C., tenancy law is nuanced and shifting. An offhand comment, text message or miscommunication can derail an entire deal and damages can easily be in the six figures.

 

Know your role: Realtor vs. property manager vs. lawyer


Realtors are licensed for trading services. Property managers are licensed to manage tenancies. Lawyers provide legal advice. Those lines exist for good reason.

Realtors are experts in marketing, negotiation and sale execution. But ending tenancies requires a detailed understanding of local laws, timelines and risks. Property managers live in this world daily, when it only lands on a Realtor’s plate when they have a tenanted listing. 

Lawyers specialize in resolving disputes, drafting enforceable agreements and advising how to best avoid a foreseeable dispute entirely. A client wouldn’t expect their mortgage broker to stage their home, nor should they expect a Realtor to handle tenancy disputes. When professionals stay in their lanes and collaborate, the results are better for everyone.

 

Constructive advice for Realtors


Realtors can still be incredibly helpful in tenanted sales, without giving tenancy advice:

  • Focus on clarity when communicating with tenants: coordinate photos, showings, explain sales timelines
  • Anything else should be directed or referred to the appropriate party
  • Build relationships with tenancy lawyers and experienced property managers
  • Adjust your tenanted property marketing plan to include cleaning for the unit and a tenancy lawyer consultation for your seller client

 

A call to action for the industry

 

The reality: investor-owned condos now dominate urban markets. Many owners are accidental landlords, ill-equipped to manage tenancies, let alone end them properly. Realtors are trained and ethically obligated–to stay in their lane.

When selling tenanted property, rather than being told “STOP–don’t do it,” Realtors need:

  • Training on how to successfully sell tenanted property
  • Referral networks to tenancy specialists
  • Support for collaboration across roles


I speak at 10 to 15 real estate offices a year about tenanted property sales. I don’t just teach—I listen. Hearing firsthand the horror stories, legal updates, and successes keeps my knowledge on the rules and best practices sharp and up to date.

Every time a sale falls apart or ends up being escalated to a provincial board, it reflects poorly on everyone involved: Realtors, property managers, sellers, buyers, tenants, landlords and the tenancy branch. With more intelligent preparation and clearer boundaries, we can protect clients, uphold professional standards, and execute deals that work for everyone, without overstepping.

Tenanted listings don’t have to be nightmares. They just need the right players staying in their lanes.

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