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There are a lot of misconceptions about a tenant’s rights and responsibilities when a landlord is selling. Below, we answer the most common questions per the Residential Tenancies Act (RTA).

Tenant Evictions

My landlord informed me that they want to sell the property and that I need to move out. 

In Ontario, tenants cannot be evicted because a landlord is listing their property for sale. If the tenant is in a lease, the new owner assumes the tenant; if the tenant is month-to-month, the new buyer can give 60 days’ notice of their intention to move into the property. Tenants cannot be made to move out in advance of a property sale.

I’m in a lease, and my landlord just sold the condo I am living in. Do I have to leave so the new owner can move in? 

In this situation, the terms and conditions of your lease transfer to the new owner, and they assume the landlord’s responsibilities. This means that:

  • The new owner will be your landlord when they take possession of the home
  • You will pay rent to the new owner
  • Your last month’s rent deposit will be transferred to the new owner
  • Your rights and responsibilities under your lease remain unchanged for the full duration of the lease. 

At the end of your lease, one of the following 3 things can happen:

  1. You became a month-to-month tenant (meaning that you can provide 60 days’ notice of your intention to leave); the terms of your original lease remain in place
  2. You and the landlord agree to sign another lease (note that you can’t be forced to sign another lease, it’s just an option)
  3. The new owner (your landlord) can provide you with 60 days notice of their intention to move into the home for their personal use. 

My lease ended, and I am currently a month-to-month tenant. My landlord sold the property…what will happen to me? 

One of 3 things can happen:

  1. Nothing changes. The new owner assumes your tenancy, and your last month’s deposit is transferred to them; everybody’s rights and responsibilities remain unchanged. Note that if it’s been more than 12 months since your last rent increase, they may choose to increase your rent according to the guidelines. 
  2. You and your new landlord can choose to sign a new lease (you can’t be forced to sign a new lease) 
  3. Your new landlord can give you 60 days notice of their intention to move-in and provide you with compensation equal to one month’s rent. Note that the current landlord can provide that notice on behalf of the new owner. 

My landlord sold the property I live in, and the new owner wants to move in. What do I need to know? 

Under Ontario’s Residential Tenancies Act: 

  • Your landlord must provide you with minimum 60 days notice, counting from the beginning of the next lease period (i.e. if you pay rent on the 1st of the month, the notice must be given no later than the 1st of the month BEFORE the last month of the tenancy)
  • The notice will be given on the N12 form
  • They must provide you with compensation equal to one month’s rent (paid before the end of the lease)
  • The person moving in must be the landlord or their immediate family member (parent, child or spouse)
  • A landlord cannot act in bad faith. They must live in the unit for at least 12 months if they evict you for personal use. 

What does ‘cash for keys’ mean?

‘Cash for keys’ is a common term when a landlord and tenant reach an agreement to do something that falls outside the rules of the RTA. 

For example:

A landlord wants a tenant to leave before they list the home for sale. Because this isn’t permissible under the RTA, a landlord may approach a tenant and offer $$ in exchange for the tenant agreeing to leave. 

The amount of ‘cash’ offered in exchange for ‘keys’ varies depending on the situation and is negotiated between the landlord and tenant. The tenant will have to consider the costs to move and the difference between how much they are currently paying in rent vs what they will have to pay in the current market, while the landlord will need to consider how much they think they can profit by selling the home vacant. 

Buyer Showings

How much notice does my landlord have to give me for a showing?

Landlords must provide most tenants with 24-hours notice of a showing. 

Exception: If you have already provided your landlord with notice that you will be leaving (for example, at the end of your lease or with 60 days notice for month-to-month tenants), the RTA requires that the landlord make “reasonable efforts” to provide notice of a showing – but the 24-hour rule does not apply.

When can my landlord show my home to potential buyers? 

Showing appointments can legally be booked in Ontario between 8 AM and 8 PM.

Can I be home during showings? I want to be present, but I work from 9-5. What can I do?

Tenants can be home during a showing to a prospective buyer, however they cannot restrict showing times based on their personal schedules. You cannot insist on being home for every showing if you aren’t available from 8 am to 8 pm.  

What can I do to prepare for a buyer showing? 

As a tenant, you don’t have to do anything. But if you want to help expedite the sale (either for your own convenience or for the benefit of your landlord), consider:

  • Making sure the property is clean and tidy
  • Restraining pets in a carrier or finding other arrangements for them
  • Leaving the property during a showing

Always put away valuables and any items you don’t want potential buyers to see. 

Other FAQ’s for When Your Landlord is Selling the Property

Does my landlord have the right to take photos of the property?

Your landlord has the right to photograph the property but must provide appropriate notice of entry. Make sure to remove any personal belongings you don’t want to be photographed. 

My landlord’s REALTOR offered to send a cleaning company to prepare the apartment for showings. Do I have to agree?

No! This is usually just offered as a convenience to the tenant. A clean property will sell faster than one that hasn’t seen a vacuum in months, and that’s good news for both the landlord and the tenant. A faster sale means fewer showings and inconveniences. 

My landlord wants to stage the home that I live in. What are my options?

You do not have to agree to re-arrange your furniture or have your home professionally staged. It’s very rare for a tenanted property to be staged. 

Comments

  1. Julia Savage says:

    My landlord has told me they want to sell my condo in the new year. My lease is finished at the end of November. If I take a new place for August or September 1st, will I be on the hook for September, October and November rent?

    • Brendan Powell says:

      Your landlord can sell their property at any time, but your lease still takes precedence – so for example if they wanted to sell TODAY, they could…but you would still be entitled to stay until at least the end of your lease.
      On the flipside, you have committed to your lease until the end of November, and you can’t just leave and unilaterally get out of that responsibility.
      So the landlord selling doesn’t directly in itself impact your lease. HOWEVER, they may have picked “next year” to sell specifically because that would be after your lease term. If you speak to your landlord and say you would be happy to find a new place sooner, they may be more than happy to let you out of the remainder of your lease, and then they could simply sell sooner–that might be a positive thing for them.
      My advice is to talk to your landlord about it. As long as you are both in agreement, then you can both sign an N11 to MUTUALLY agree to end your lease early (only sign this once you have a new place lined up! But talk to the landlord beforehand).
      Good luck!

  2. Ann Winter says:

    I asked my landlord to be able to sublet while I’m caring for a relative. At first he refused saying they were going to renovate and sell. When I insisted that the sublet was temporary and I intended to move back in, he then said the sale would be at the end of my lease and the sublet could go ahead. He also offered 3 months rent if I’d move now. Should I haggle for more?

    • Brendan Powell says:

      It’s hard to give advice on this kind of thing as it’s very situation-specific. However as you do not HAVE to move out just because he is selling, make sure that you look into how much it will cost you to move and rent a new place before agreeing to sign anything.
      You will find many opinions online…but from my perspective that seems reasonable as long as it covers your costs with extra for any hassles–although now you’ll get the sublet at least!

  4. Joseph says:

    My landlord has informed me yesterday (Sept. 8th, 2024) that the home will need to be sold at then end of my tenancy. I do have a one year lease which is paid (12 months) in full, and it ends on March 31st, 2025. The landlord has given me 204 days notice which is more than the 60 days required, has informed me that if I move out early, the remaining balance will be returned. Does the landlord need to provide a reasonable reason as to why they are selling the unit? According to my research this is allowed by the landlord, but wanted other feedback to ensure that my rights are being adhered to. Any help on this is much appreciated.

    • Brendan Powell says:

      Reread the blog above – there is no such thing as a landlord giving “notice” to sell. (Beyond giving you a heads up as that typically means showings.) You do not have to leave just because your landlord is selling.
      If an eventual buyer wants to move in themselves, then at THAT point they must give you appropriate notice using the correct form.

      Of course, as the owner of the property they can sell any time they want to, for any reason—it’s their property. Your lease is quite separate from that though.

      If you would like to avoid the hassles of showings etc, and/or the possibility that a new buyer MIGHT still ask you to leave, you are free to agree to whatever you and your landlord decide together. It is usually preferable to sell without a tenant, so you likely have some negotiating power as leaving early would help the sale.

      • Joseph says:

        The lease is until the end of March 2025 so legally I can stay there until then, and if there is a new owner before that date, they will also need to adhere to the lease agreement, and when the lease is over, then the new owner could either extend it to me or provide me form N11 or N8. I think I got it, thank you very much for your help.

        • Brendan Powell says:

          Correct, except for the forms.
          If an owner wants to move in themselves, they would use the N12. N11 is a MUTUAL agreement between both parties to do something that would normally not be allowed unilaterally (like ending a tenancy early). You could use this for example with your current landlord if you agree to move out early.

          N8 is only used when there is a problem, such as not paying your rent!

          Also note that the N12 can be served before the end of your lease, given by your landlord on behalf of the incoming new landlord, as long as the date they will move in is after the end of your lease, and enough notice is given. Your current landlord can’t use that unless they change their minds and want to move in themselves.

  6. Kathleen says:

    I know the new owners when they come in take over the lease and then they provide an N12. Do all parties have to wait for the hearing at the LTB to happen before we have to leave and they to move in? We are sure that if there is a conditional sale the new owners intend to flip the home which we know they are not allowed to do. We are in a tricky situation where nothing seems to be above board. We’d like to know our rights in advance. The home is supposedly “conditionally sold” yet this is not disclosed on MLS and incoming agents have not been provided this information.

    • Brendan Powell says:

      So there are too many unknowns in your question to be able to give a definitive answer, however what I can say is:
      – when a property is Sold Conditionally, keep in mind that is only visible to agents not the general public (as it is not 100% sold)
      – if you think the incoming owners intend to flip, it might be smart to make it clear that you are paying attention and know the rules–if they really do intend to break rules but know you will be watching to make sure they don’t just re-rent the unit for higher, they may not take the risk…fines are now up to $50,000 for a bad faith eviction!
      – yes, technically if you choose to challenge the N12 then all parties would have to wait for a hearing and you can stay until then.
      However, rather than go through all that, just make it clear that even if they give you an N12 to move in themselves…you will be making sure they actually move in, and making sure they don’t just re-rent it. Once they see you are watching, either nothing will change (if they have no bad intentions) or they will likely re-evealuate their plan.
      Good luck!

  7. Mark S says:

    My landlord told me he’s sold the unit and gave me the N12 and one month rent, stating that the new landlord will move in. I have moved out as a result but noticed that the property is up for sale again. What are my best options?

  8. Marie says:

    We were notified by the selling agent that our rental has been sold. Am I correct that notice would be 60 day from the date of possession and that the buyer has to move in himself and at that point I can request a hearing, during which time we can stay?

    We are sure that this is a flip, the whole process was very suspicious down to the home inspection (agent, buyer and home inspectors were all very close and the listing agent admitted he only booked the showing with the now buyer just to get into the home) – listing agent took over from another agent who happened to be our landlord

    • Brendan Powell says:

      Once the home has been sold, if the buyer intends to move in themselves, they can give notice via your current landlord right away. Part of that notice will be the buyer certifying that they are indeed moving in for their own use.
      Beyond that you should get advice specific to your situation from a paralegal or similar, as each situation is different! Best of luck.

        • Brendan Powell says:

          Not necessarily, as you do have the right to challenge. However, I would perhaps start by making it obvious to the landlord/buyer that you know the rules, that you would be watching to ensure the eviction is legit, and maybe remind them of the fines for bad faith eviction (up to 50K).
          The N12 itself has details on how things go if you disagree—eventually if you choose to stay and the landlord applies to the LTB, there will be a hearing where both sides will need to substantiate their claims…so be sure it’s more then just suspicion, and document!

          You can get much more information on the LTB website here: https://tribunalsontario.ca/ltb/navigate-tribunals-ontario/

  9. Terry says:

    I’ve been renting a basement apartment for 2 years as of Jan 2025. I signed a one year lease when I moved in. The asked me to reassure them that I would never move out as I am a good tenant, but they never asked to renew the lease and just told me they are putting the house on the market. Since I am month to Month I’m sure I have to leave. Am I correct? It’s scary out there for renters.

    • Brendan Powell says:

      Not necessarily. It will depend entirely on who purchases the home.
      I don’t know anything about the building you live in, but if it is like a typical Toronto basement apartment, usually the rest of the house is either all for an owner, or divided into several other apartments.
      If the purchaser wants to move into YOUR unit specifically–or the whole house including your unit–then yes, you may receive an N12 and you may have to leave.
      However…many times a purchaser DOESN’T want to use the basement apartment–they may appreciate having your tenancy in place. Basement tenants–especially ones who have not been there a LONG time (and therefore their rent should be closer to market value) are at LESS risk I would say than a tenant living in what might be more obviously an owner’s suite.
      Basically, don’t panic until you know. Good luck!

  10. Katie says:

    I know the new owner has to “live” in the residence if stated for in N12 that they are moving in for personal use for one year. When does that take effect? How long can they leave the home empty if at all in that time? We are concerned they aren’t the ones moving in or don’t intend to move in at all. We were given notice to leave two months before the new owners even take possession

  11. M says:

    My landlord (who I’ve been with for 6 years) has never raised the rent and now he wants to raise it be a minimum of $400 or he might have to sell (relationship issues). I would offer an additional $200 each month as a good will gesture (I know he can only raise it 2.5% per year so this would fall in line with this amount if it had been raised every year) and work up to a higher rent but I fear it won’t be enough for him. I have been month to month for 4 years now, I am an excellent tenant yet I know rent is where he is asking in my city but I simply cannot afford to jump $400. Any advice?

    • Brendan Powell says:

      Unfortunately not, other than trying to have an open dialogue with them. It sounds like you have a good relationship…and he has done you a favour by not raising your rent for so long, which I’m sure he regrets now! There isn’t much he can legally do, as you are right the increase is capped at the official % (which changes every year btw).
      On the other hand, there isn’t much you can do, in that, if he can’t afford to keep the property he may have to sell…and if you are well under market rent, the home will only be attractive to end users who will need to evict you! No investor wants to buy into a tenancy well under market—so that scenario could end up with you paying more elsewhere.

      I think your approach is the best possible – try to meet your landlord where you are able to, acknowledging that market rent IS above what you pay, but that $400 is more than you can afford. Good luck!

      • M says:

        Thank you for your response, I am very appreciative, if I could clarify something? regarding a buyer, wouldn’t they have to live in the apartment in order for it to be a legal buy, they wouldn’t be able to buy it and then lease it to someone else? and could you clarify “the home will only be attractive to end users who will need to evict you? Would I have to leave no matter what if the place is sold?

        • Brendan Powell says:

          Well anyone can buy the property, but to be able to legally serve a tenant an N12 (which is notice they require the tenant to leave because they are moving in themselves), THAT would require them actually moving in—or at very least having every intention of moving in. If they were caught serving an N12 and then just leasing to someone else they could be heavily fined.
          You do not need to move just because the property is sold! Your tenancy goes along with the property. This is why it is so almost impossible to sell to an investor when rents are well below market – they are stuck with them unless they move in themselves.

  12. Vanessa says:

    My daughter is considering signing a lease to rent a room in an eight room house near her university. The term of the lease would be from May 2025 to May 2026. I just saw a listing online that the house is up for sale. I had a casual conversation with the listing agent who said that some of the people coming to look at the property for purchase are parents looking for a rental property for their own kid(s). I have two questions. First, it is my understanding that the prospective purchasers would be required to honour existing leases when they buy the property. However, if the lease has been signed, but the term of the lease has not begun, must they still honour it? Second, if they decide to evict for personal use, do they evict all eight tenants or just one tenant in order to use one room?

    • Brendan Powell says:

      The answer depends on things like what is shared and the leases in place. I would get a realtor to look at the specific situation and details to give you a definitive answer.

      Some details that could be important:
      – if the tenants share a kitchen or bath with the owner, then the Residential Tenancies act does not apply
      – is there one lease or multiple? One name on it or many?

      Room rentals are typically not handled by realtors and so it tends to fall outside of the “normal” rules! I can say that typically, while a lease is still in place, an incoming buyer can only give notice they want to move in themselves once the lease term is over and tenants are month to month.

      I highly doubt that a buyer wanting to use the home for their own children would only want one room empty though…
      Best of luck!

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