Selling a Rented Property in Ontario

No. A sale, or the death of a landlord, does not end an Ontario tenancy. Under the Residential Tenancies Act, 2006, a tenancy may be terminated only in the ways the Act allows (section 37). The word landlord in the Act includes the owner's heirs, assigns, personal representatives and successors in title, so a buyer steps into your place. Covenants in the tenancy also run with the land (section 18).

That means you cannot tell a tenant to leave because you are selling. The ways a tenancy can end are a notice the Act permits, an agreement, or an LTB eviction order. A landlord cannot require a tenant to sign an agreement to end the tenancy (Form N11). The one notice built for a sale is the purchaser's own-use notice (Form N12), covered below.

Plan to sell with the tenant in place unless the tenant agrees to leave or the buyer qualifies to use the N12 route.

The buyer takes over the lease as it stands. The table shows the points landlords ask about most.

Item	After the sale
Lease terms	Continue. A fixed term keeps running to its end date, then becomes month to month if nothing new is signed (section 38).
Rent	Stays the same. The new owner cannot raise it right away. The 12-month rule counts from the last increase for that tenant in that unit, not from the sale date, and 90 days' written notice is still needed.
Rent deposit	A new landlord cannot ask for a new rent deposit if the tenant already paid one to the prior landlord. A deposit paid to a former landlord must be applied to the last rental period (section 106).
Deposit interest	Interest on the rent deposit is owed to the tenant every year at the rent increase guideline rate in effect when payment is due.

Ontario has no damage deposit, so there is no security deposit transfer beyond the rent deposit. Give the buyer the deposit amount, the date of the last rent increase and a record of interest paid. See the landlord rent deposit guide and the guide to raising rent for the detail.

1. Collect the paperwork. Pull the signed lease (the standard lease, Form 2229E, for most tenancies), the rent history, the deposit amount and interest record, and any written agreements with the tenant.
2. Tell the tenant in writing. The sources used for this guide do not set a notice period for telling a tenant about a sale. A short letter that names the new owner and says where rent goes is sensible, and it avoids missed payments.
3. Do not change the terms. Once a standard lease is signed, it can be changed only if both sides agree in writing. A sale is not a reason to change them.
4. Give proper showing notice. Follow the entry rules in the next section every time.
5. Hand over the tenancy. At closing the buyer becomes the landlord. Make sure the buyer has the documents from step 1.

If the buyer wants the unit empty, say so early. Whether a buyer can use the N12 route depends on the buyer's intentions and the building, covered below. Our Ask page on moving back in covers the owner's own-use route.

You may show the unit to potential buyers, but only after proper written notice. The notice must be given at least 24 hours before entry, and it must state the reason for entry, the day, and a time between 8 a.m. and 8 p.m. (section 27). A registered real estate broker or salesperson may enter for you if you give written authorization.

If the notice is proper, the tenant cannot refuse entry. See the LTB Guide to the RTA for how entry notices work. The Government of Ontario lists it as an offence for a tenant to stop a landlord from entering after proper notice (rental housing offences).

Notice is the part that is easy to skip and costly to get wrong. Without it, the tenant can refuse. Keep a copy of every notice. For more on entry, see the tenant-side Ontario landlord entry guide.

A buyer who wants to live in the unit can end the tenancy only through a purchaser's own-use notice, Form N12 (the research describes this route for buildings of three or fewer units). The notice must give at least 60 days, and the termination date must be the last day of a rental period or the end of a fixed term (LTB landlord brochure).

The September 2026 change that drops compensation when a landlord gives at least 120 days' notice does not apply to purchaser's own-use notices (LTB update, September 21, 2026). The sources for this guide do not state the compensation for a purchaser's N12, so check the LTB before you set a price or a closing date around it.

An N12 does not make the tenant leave. If the tenant stays, an application to the LTB is needed, usually within 30 days after the termination date, and only the Court Enforcement Office can enforce an eviction order. Ontario's guide lists remedies for bad faith that include up to 12 months' rent, plus the rent difference and moving costs (Renting in Ontario: your rights).

Updated versions of several LTB forms, including the N12, replaced the old ones. Always download the current form from the LTB forms page.

• Promising vacant possession without a legal way to get it. Without a tenant's agreement or a valid N12 and LTB order, the unit comes with the tenant.
• Pressuring the tenant to sign an agreement to end the tenancy. A landlord cannot require it.
• Entering for showings without proper notice. The tenant can then refuse.
• Changing the locks to get the unit empty. It is illegal to change the locks without giving the tenant a key.
• Treating a sale as a rent reset. The 12-month and 90-day rules are not restarted by a sale.

If a buyer insists on vacant possession, the fix is to talk to the buyer early and, if both sides agree, to negotiate an agreement with the tenant. If the tenant disagrees, the buyer should rely only on the lawful routes above. See also the landlord notice to end a tenancy guide.

The same logic applies if an owner dies. The tenancy continues, and the estate steps into the landlord's place. The rent and the deposit rules stay the same. A personal representative who sells the unit later follows the steps above for the buyer.

This guide explains the rules in general terms; for a specific case, ask the tribunal or a licensed legal professional.