Selling a Tenanted Property in Ontario: N12 and Purchaser Use

Selling a Tenanted Property in Ontario · Updated for 2026

Featured photo by Alex Reynolds on Unsplash.

Selling a rental property in Ontario does not automatically end the tenancy. Buyers, sellers, landlords and tenants need to understand the difference between selling a property and legally terminating a tenancy for purchaser occupation.

The Tenancy Usually Continues Through a Sale

A change of ownership generally does not, by itself, require a tenant to move. The purchaser normally takes over the landlord’s position unless the tenancy is lawfully ended under the Residential Tenancies Act.

Showing the Property

Landlords and authorized registered real estate professionals may enter to show a unit to potential purchasers after giving the written notice required by the RTA. The notice should state the reason, date and a time between 8 a.m. and 8 p.m.

When an N12 May Be Used for a Purchaser

Where there is an agreement of purchase and sale and the purchaser, the purchaser’s spouse, parent, child or qualifying caregiver genuinely requires the rental unit for residential occupation, the landlord may be able to serve Form N12 on behalf of the purchaser, subject to the statutory requirements.

Compensation Is Required

For a purchaser-use N12, the September 21, 2026 landlord-own-use compensation exception does not apply. See the 2026 Ontario rental-rule changes overview for the landlord-own-use changes and other September reforms. Purchaser-use notices continue to require compensation equal to one month’s rent or an acceptable alternative rental unit, subject to the current RTA and LTB instructions. The new exception for a landlord’s own-use N12 applies only where the statutory conditions are met, including at least 120 days’ notice.

A Notice Is Not an Eviction Order

Serving an N12 does not allow a landlord, seller or purchaser to change locks or remove the tenant. If the tenant does not leave, an application to the Landlord and Tenant Board and an eviction order may be required.

Vacant Possession Clauses Need Care

A seller should be cautious about promising vacant possession when a tenant is still in the property. The timing of an N12, fixed-term lease dates, compensation, service and LTB proceedings can affect whether vacant possession is actually achievable by closing.

Checklist for Sellers and Buyers

• Review the lease and tenancy status early.
• Confirm whether the purchaser genuinely requires occupation.
• Use the current N12 and L2 instructions.
• Calculate the termination date carefully.
• Pay required compensation on time.
• Do not assume the tenant must leave because the property sold.
• Build realistic timing into the agreement of purchase and sale.
• Budget for the broader transaction using our guide to the cost of selling a house in Ontario.

See the LTB personal-use guideline and our Landlords & Tenants hub.

Selling a Tenanted Property FAQ

Does a tenant have to move because the property is sold?

No. A sale by itself does not automatically terminate the tenancy. The purchaser generally becomes the new landlord unless the tenancy is lawfully ended.

Can a buyer require the unit for their own use?

Potentially. Where the statutory requirements are met, an N12 may be used for genuine purchaser occupation, with required compensation and LTB procedures.

General information only: N12 and vacant-possession issues are fact-sensitive and can materially affect a real-estate transaction. Obtain legal advice where appropriate.