If your landlord sells your rented house in Ontario, you usually have the right to keep living in that property. In most cases, the buyer becomes your new landlord.
Unless you agree to end the tenancy or the Landlord and Tenant Board orders your eviction on legal grounds, you can remain in the house. This article explains your rights as a tenant if your landlord wants to sell your house, including:
- Rules about showing your house to buyers and taking listing photos
- Things to consider before signing a cash-for-keys agreement
- Whether selling the house affects your tenant insurance.
- To confirm what changes and what does not when a rented home is sold, our team reviewed LTB Interpretation Guideline 12, the LTB’s guide to how a landlord can end a tenancy, LTB Interpretation Guideline 19, and the Office of the Privacy Commissioner of Canada’s landlord-and-tenant guidance.
What Are Your Rights If Your Ontario Landlord Sells The House?
You are entitled to stay in your home during and after the sale. Even on a fixed-term lease, it does not end at closing. If your lease has already expired, it becomes a monthly, weekly or daily tenancy with the same terms.
A landlord cannot end a lease with a basic 60-day Notice to Terminate letter. A landlord can only end it for a reason allowed by the Residential Tenancies Act and must give you the correct Notice to Terminate the Tenancy and obtain an order from the LTB if you do not leave.
| Stage | What it means for you |
|---|---|
| Property is listed | The tenancy continues. Lawful showing rules apply. |
| Property is sold with you in it | Generally the buyer becomes the new landlord and will be responsible for the existing tenancy agreement. |
| Qualifying buyer wants to move in | If both the rental property and the proposed occupant qualify under the rules, your current landlord can give you an N12 in Ontario. |
| N12 is served | You have a right to an LTB hearing. The termination notice is not an eviction order, as the proposed termination date does not mean that you have to move out. |
| LTB makes an eviction order | In Ontario, if your landlord sells the house and you have not moved out, only the Court Enforcement Office can enforce the eviction order. |
A Sale Does Not Automatically End The Tenancy
Only the Landlord and Tenant Board can order you out of your rental. Neither the landlord, buyer, or listing agent can force you out by changing the locks or treat a notice as an order. Keep paying your rent, and keep receipts and other evidence of payment. You should receive written instructions on where to send the rent after closing, who your new landlord is, and how to reach them.
Your tenant insurance normally does not change merely because your landlord decides to sell the property. Let your insurer know if your address or occupancy status changes. If you’re planning on moving, tell your insurer your intended move-out date.
When Can A Landlord Issue An N12 For A Purchaser?
If you do not leave after receiving Form N12, the landlord must apply to the LTB with Form L2 if they want you removed from the unit. If they apply, the LTB will invite you to a hearing. At the hearing, the landlord must prove their case. You have the right to participate in the hearing, challenge any facts, and submit evidence. Alternatively, if you get Form N12, you could leave before the termination date. To do so, you must give the landlord at least 10 days’ written notice using Form N9. Form N12 is valid only if all of the following apply:
- the landlord has an agreement of purchase and sale BEFORE sending Form N12;
- your rental unit is a condominium or is in a building with no more than 3 residential units;
- the buyer intends to take up residence in the unit for themselves, their spouse, their or their spouse’s child/parent, or a qualifying caregiver;
- the termination date on Form N12 is at least 60 days from the date they give you the form;
- the termination date on Form N12 is the last day of a rental period or fixed term;
- the landlord will pay you an amount equal to one month’s rent OR provide an alternative unit which is acceptable to you by the termination date.
Read More: Understand Ontario’s Tenant-Eviction Process
What If The Purchaser-Use Notice Is In Bad Faith?
Depending on the facts, you may be eligible to apply to the LTB for compensation or other remedies.
The purchaser must genuinely intend to occupy the unit. Keep copies of advertisements if you have to move because of a purchaser-use N12.
What Rules Apply To Showings?
If your rental is offered for sale, your landlord must give you at least 24 hours’ written notice before showing your rental. The notice must state the reason, date, and a time between 8:00 a.m. and 8:00 p.m. A registered broker or salesperson may also enter if the landlord has given them written authorization.
You have the right to remain in your rental. The rental may be shown even in your absence.
Keep all notices from your landlord, and note the times they enter your rental. Too many showings, or unnecessary visits, can interfere with your right to reasonable enjoyment.
You are not required to decorate or stage your rental for showings.
You cannot refuse a lawful viewing simply because it is inconvenient.
Read More: See When an Ontario Tenant Can Refuse Landlord Entry
What About Listing Photographs?
Photos of your home and your things can be personal information. The Office of the Privacy Commissioner of Canada advises that the landlord must identify why they want to take the pictures, obtain your consent, and explain how they plan to use the pictures and who they might disclose them to.
What If The Landlord Serves N13 For Renovations?
N13 covers demolition or conversion, or repairs or renovations so extensive that the unit must be empty and a building permit is required. It is a notice, not an eviction order. The notice period is at least 120 days. Compensation and any right to move back depend on the reason, building size, and notices you give before leaving. Read the form and get advice before giving up a right of first refusal.
Read More: Review Tenant Rights During Renovations in Ontario
What To Do After Learning The Property Is For Sale
- Keep the lease, rent receipts, notices, emails, listing screenshots and showing log.
- Do not move because of a listing, text message or N12 alone unless leaving is your informed choice.
- Check the property size, proposed occupant, compensation and termination date on an N12.
- Take an N12, N13 or N11 to a community legal clinic or licensed Ontario legal professional before acting.