When Your Landlord Sells: Tenant Rights in Ontario
A tenant whose landlord sells the building often worries about being forced out. A sale does not end a tenancy, and the new owner takes the property subject to the existing tenancies.
- Selling the property does not end the tenancy. The buyer becomes the landlord and the lease and rent continue.
- A buyer who wants to live in the unit can only end a tenancy by following the Act, including proper notice and compensation.
- A landlord can show the unit to potential buyers, but only with written notice and within set hours.
- The rent deposit and its interest stay with the tenancy and become the new owner's responsibility.
What stays the same
- Your lease, your rent and your rights continue with the new landlord.
- The rent increase rules, repair obligations and protection from eviction without proper process all carry over.
- A landlord cannot make you leave just to give a buyer vacant possession. A clause in the sale agreement does not bind you.
Showings and entry
- A landlord can enter to show the unit to potential buyers, but must give at least 24 hours' written notice, and entry must be between 8 a.m. and 8 p.m.
- The notice must state the reason for entry, the day and a time window.
- A tenant cannot unreasonably refuse access, and a landlord cannot arrive unannounced or demand constant showings.
- Photographers, inspectors and other visitors count as entry, and the same rules apply.
If a buyer wants to move in
A landlord can give an N12 notice ending the tenancy because the landlord, or in some situations a buyer, or a family member intends to live in the unit. Where it is for a buyer, the landlord gives it on the buyer's behalf, and only where the Act allows it. The notice must meet the Act's requirements, including at least 60 days' notice that ends at the end of a rental period or the lease term, and compensation of one month's rent or an offer of another acceptable unit, paid by the termination date. The landlord must file with the LTB if the tenant does not leave, and swear to a genuine intention to live there. See the N12 guide.
If you suspect a bad faith notice
If a landlord gives an N12 and then does not move in, or re-lists the unit, a former tenant can apply to the LTB for a remedy (the T5 application), and the Act sets time limits for doing so. See the T5 guide.
Deposits and paperwork
- The new owner takes over the last month's rent deposit and the interest owed on it.
- Ask for the new landlord's name and the address for rent payments, in writing.
- Keep paying rent as you did until you receive written notice of the change, and keep receipts.
Common questions
Do I have to let people in for open houses?
The landlord may show the unit to potential buyers on 24 hours' written notice, in daytime hours. You can ask for reasonable timing, but you cannot unreasonably refuse.
Can the buyer raise my rent?
Only by following the usual rent increase rules, with proper notice and within the guideline unless an exemption applies.
Who can help. Licensed paralegals can represent landlords and tenants at the Landlord and Tenant Board (LTB).
This guide is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.
Not sure where you stand? A licensed paralegal can look at your documents and tell you your options.
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