Selling a Tenanted Property in Ontario · Updated for 2026
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Yes. A landlord can sell a property while it is occupied by a tenant. The sale itself, however, does not automatically terminate the tenancy or give the seller the right to require the tenant to leave.
General information only: This is not legal advice. Tenanted sales can affect both tenancy rights and a real-estate transaction.
Does the tenant have to move because the property is listed?
No. Listing or selling the property does not by itself end the tenancy. Ontario’s Residential Tenancies Act provides security of tenure and requires a tenancy to be terminated in accordance with the Act.
What happens to the tenancy after a sale?
If the tenancy has not been lawfully terminated, the purchaser generally takes over the landlord’s position. The existing tenancy does not simply disappear on closing.
Can the landlord show the unit to buyers?
Yes, if the statutory entry requirements are followed. Section 27 of the RTA permits a landlord or an appropriately authorized registered real estate professional to enter with at least 24 hours’ written notice to allow a potential purchaser to view the unit. The notice must specify the reason, day and a time between 8 a.m. and 8 p.m.
See When Can a Landlord Enter a Rental Unit in Ontario?
Can a purchaser require the rental unit for personal use?
In qualifying circumstances, the RTA permits an N12 process connected with genuine purchaser occupation. The requirements depend on the property, purchaser, proposed occupant, tenancy and current law. An N12 is a notice, not an eviction order.
See our detailed N12 and Purchaser Use guide and Bad-Faith N12 Evictions in Ontario.
What if the tenant is in a fixed-term lease?
A fixed term can materially affect timing. Sellers should review the tenancy before promising a particular vacant-possession date. The existence of an agreement of purchase and sale does not itself override the tenant’s statutory rights or applicable term.
Should a seller promise vacant possession?
Only with careful legal and transactional analysis. An agreement that promises vacant possession can create serious closing risk if the seller cannot lawfully deliver it on time. N12 timing, the tenancy term, service, statutory requirements and any LTB proceeding can all affect possession.
What happens to the last month’s rent deposit?
The parties to the real-estate transaction should account properly for any lawful rent deposit and related tenancy records. A change of ownership does not convert a last month’s rent deposit into a general damage fund.
What records should a seller prepare?
- Tenancy agreement and amendments
- Current lawful rent
- Rent-deposit information
- Rent ledger
- Notices previously served
- Maintenance and repair records
- Pending LTB applications or orders
- Tenant contact information
- Any written agreements concerning termination
What should buyers investigate?
- Whether the unit is currently occupied
- The type and term of tenancy
- Current lawful rent
- Whether the purchaser genuinely intends qualifying occupation
- Whether the proposed closing date is realistic
- Whether any notices or LTB proceedings are outstanding
Frequently asked questions
Can the seller evict the tenant just because the buyer wants an empty house?
No. Vacant possession must have a lawful basis. A buyer’s preference for an empty property is not itself a substitute for the RTA requirements.
Can a REALTOR® show a tenanted property?
Yes, where the statutory requirements are met and the real estate professional has the required authorization. Proper notice remains important.
Does an N12 guarantee vacant possession by closing?
No. An N12 is a notice rather than an eviction order, and timing can be affected by the tenancy, statutory requirements and LTB proceedings.
Official sources
Review the current Residential Tenancies Act, 2006 and Tribunals Ontario forms and instructions.
If the property sale itself is your next step, Ontario Home Intel also provides Ontario selling guides and a way to connect with a local REALTOR®.