The mortgagee (or appointed person) can issue this notice if all of the following apply: 

• the tenancy agreement commenced after the rental premises became subject to a mortgage;
• the mortgagee does not consent to the tenancy, and;
• the mortgagee or another person appointed under the mortgage has become entitled to obtain possession of the premises.  

A mortgagee usually becomes entitled to obtain possession of a property if the property owner fails to make loan repayments and defaults on their mortgage.

This notice must be signed by the mortgagee (or appointed person) and given to the tenant at least 2 months before they must move out.

The agreement ends on the day the tenant vacates the property, and rent must be paid up to and including that day.

The tenant may be asked, in writing, to pay rent to the mortgagee instead of the property manager/owner.

The tenant must move out by the date stated on the notice or further action may be taken by the mortgagee.

If the tenant disputes the reason for the notice, they should try and resolve it with the person who gave the notice. If agreement cannot be reached, the RTA’s free dispute resolution service may be able to help.