In short: when you buy a property with a tenant in it, your right to a pre-settlement inspection depends on the sale and purchase agreement and the existing tenancy. Access must be negotiated with the tenant under the Residential Tenancies Act 1986 – a sale does not give the buyer or seller an unrestricted right to enter. Record vacant possession or the tenancy in the agreement, and arrange inspection access well before settlement.
Buying a tenanted property raises practical questions about access, condition and vacant possession on settlement day. The buyer’s ability to inspect before settlement depends on the terms of the agreement for sale and purchase and the existing tenancy arrangements.
Under the standard TLANZ/REINZ agreement, the pre-settlement inspection clause provides a mechanism for checking the property’s condition and confirming that the seller has complied with their contractual obligations.
Where a tenant remains in occupation, however, access must be arranged in negotiation with the tenant and in compliance with the Residential Tenancies Act 1986.1 A sale does not give the seller or buyer an unrestricted right to enter the property.
For buyers, the agreement should clearly record whether the property is sold with vacant possession or subject to the existing tenancy. If an inspection is required, lawyers for each side should ensure appropriate access arrangements are made in advance. Sellers should likewise avoid promising vacant possession without first establishing that the tenancy can lawfully be terminated.
The practical lesson is to address possession and inspection rights when the agreement is negotiated, rather than leave them to become a settlement day dispute.
Talk to our property team in Whangārei – get in touch.
1 Section 48 of the Residential Tenancies Act 1986.
This article first appeared in Property Speaking, Summer 2026 (No 53). Read more of our newsletters.
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