Is a Landlord Allowed to Evict a Tenant When Selling the Property?

To Evict a Tenant to Enable a Buyer to Move In, a Landlord Must Provide Proper Notice of Termination.
Similar Questions About Evicting a Tenant When Selling Include:

  • A Landlord Wants to Evict the Tenant Because the Property Is Being Sold. Is This Legal?
  • Must a Tenant Leave If a Landlord Is Selling the Property?
  • Is It Legal For a Landlord to Evict a Tenant When Selling the Property?
  • Is a Landlord Allowed to Evict a Tenant When Selling the Property?
  • When a Landlord Sells Property In Ontario Does the Tenant Have to Leave?

A Helpful Guide on How to Determine Whether a Tenant Has the Right to Stay When a Landlord Is Selling the Property

Notice to Evict

The law in Ontario says that when a landlord is selling a property, and the property has tenants residing within the unit, the tenants can stay should the new owner want to take on those tenants; however, within the market today, many purchasers are requiring vacant possession when purchasing a property.  The process of obtaining a property with vacant possession, usually, occurs as part of a process set out within the Agreement of Purchase and Sale documentation.  The process begins with the seller, being the landlord, properly completing and serving the N12 – Notice of Termination for Landlord's, Landlord's Family Member, or Purchaser's, Own Use form prescribed by the Residential Tenancies Act, 2006S.O.  2006, Chapter 17.  This form requires that the seller provide due notice to the tenants at least sixty (60) days in advance of the termination date.  The tenant can choose to move out by the date on the notice or, if the tenant believes that the notice was given in bad faith, the tenant may contest the notice at a hearing at the Landlord Tenant Board. It is notable that once the landlord as seller provides notice to the tenant, the landlord can then file the notice with the Landlord Tenant Board immediately utilizing the L2 - Application form.  Furthermore, such a termination is inapplicable if the premises contains more than three (3) rental units. Additionally, the rules of eviction when selling a property disallow eviction if the landlord is selling a property to a relative of the landlord.

In law, the seller is without a requirement to provide compensation the tenants; however, to avoid conflict and potential delays, the seller may choose to do so whereas a landlord may negotiate a 'cash for keys' agreement with the tenants. A 'cash for keys' agreement occurs when a landlord, without use of undue pressure, enters into a deal to buy out a tenant.  In such an effort, it is advisable that the landlord obtains the assistance of a legal professional to negotiate the agreement as the terms must be negotiated within the law.  Trying to negotiate such a deal, or allowing a real estate agent to negotiate such a deal, is ill advised. Often when the landlord or a real estate agent takes on this task, failures to abide by the precise law lead to breach of the rights of the tenant with a possibility that such rights will be pursued by the tenant via applications seeking protections and remedies brought to the Landlord Tenant Board. Note also that a real estate agent is legally unable to provide legal services without holding a proper license from the Law Society of Ontario.

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