Selling a tenanted property in Ontario is legal, common, and – if you serve the wrong form – expensive. On July 1, 2026 the province doubled the maximum fine for a bad-faith eviction to $100,000 for an individual landlord. On September 21, 2026 the compensation rules change again. This guide covers what applies today, what changes next month, and what it costs to get wrong.
Scrolling for tenant answers? Jump to what your rights are when your landlord sells.
Can a landlord sell a house with tenants in it?
Yes. You do not need the tenant’s permission to list, and you are not required to notify them before the sign goes up. A landlord can sell house during lease terms without touching the tenancy at all.
What the sale does not do is end the tenancy. The lease runs with the property. The buyer inherits your position as landlord on closing – same rent, same term, same parking spot, same pet clause. Security of tenure under the Residential Tenancies Act means the tenant stays unless one of exactly two things happens:
- The buyer or their close family genuinely intends to move in (Form N12), or
- The tenant signs an agreement to leave (Form N11).
There is no third route. Selling is not, by itself, grounds to evict a tenant to sell the property in Ontario.
How much notice does a landlord have to give when selling the property in Ontario?
Notice obligations split into two very different things people confuse.
| What you’re doing | Notice required |
|---|---|
| Entering the unit for a showing, photos, or an inspection | 24 hours’ written notice, entry between 8 a.m. and 8 p.m. |
| Ending the tenancy for the buyer’s own use (N12) | 60 days, ending on the last day of a rental period |
| Ending the tenancy for buyer’s own use, from Sept 21, 2026 | 120 days if you want to skip compensation – see below |
| Telling the tenant you’re listing | None required. Do it anyway. |
The 60-day count is not 60 days from today. It runs to the end of a rental period. Serve an N12 on August 20 with rent due the first of the month, and the earliest termination date is October 31 – not October 19.
The September 21, 2026 change every landlord should plan around
Under RTA section 48.1 as it stands today, an N12 for purchaser’s own use requires you to pay the tenant one month’s rent, or offer another unit they accept. This is not a goodwill gesture. It must be in the tenant’s hands before the termination date on the notice. Landlords routinely turn up at the hearing offering to pay then – the Board dismisses the application, and the 60-day clock restarts.
Bill 60, the Fighting Delays, Building Faster Act, 2025, adds an exemption: give 120 days’ notice or more, with the termination date landing on the last day of a rental period or the end of a fixed term, and the one-month payment is waived.
The trap is timing. Bill 60 received Royal Assent on November 27, 2025, but the tenancy provisions take effect by proclamation on September 21, 2026. Serve a 120-day notice before that date without paying compensation and you have an invalid notice plus exposure to a bad-faith claim. Landlords planning a fall sale should either pay the month now, or wait until September 21 and use the longer runway.
Which properties the N12 route is even available for
An N12 for purchaser’s own use only works where the residential complex has three or fewer units. Detached houses, condos, duplexes and triplexes qualify. A fourplex or a small apartment building does not – no matter what the buyer intends. If you own a six-unit building, your buyer is buying tenants.
The qualifying occupant can be the purchaser, their spouse, a child or parent of either, or a caregiver who will genuinely live there. The purchaser signs an affidavit of intent, and must actually occupy the unit for at least 12 months.
What bad faith costs in 2026
If the buyer never moves in – the unit is re-listed at a higher rent, or flipped – the former tenant files a T5 application. The Board can order up to 12 months’ rent, moving costs, and the difference in rent at the tenant’s new place. Separately, the province can prosecute: since July 1, 2026 the maximum fine is $100,000 for an individual and $500,000 for a corporation, double the previous ceiling.
Never serve an N12 as a negotiating tactic. The arithmetic no longer works.
Cash for keys: the N11 route
The other way to get vacant possession is to buy it. An N11 ends the tenancy by agreement on a date both sides pick. It is binding once both sign – and worthless unsigned. You cannot pressure a tenant into one, and a tenant who says no has done nothing wrong.
Typical Ontario settlements run one to three months’ rent, higher where the tenant is well under market and will pay more elsewhere. A tenant paying $1,800 for a unit that now rents at $2,600 is losing $9,600 a year by moving; price the offer against that, not against your inconvenience.
Sign the N11 before you list where you can. “Vacant possession on closing” opens the property to end-user buyers, and removes the risk of a buyer walking when they learn a tenant is staying.
What if the tenant won’t leave?
If the tenant won’t leave after a valid N12, you cannot change the locks, remove belongings, or shut off utilities. Self-help eviction is illegal and is one of the offences carrying the new $100,000 maximum. The only route is an LTB order enforced by the Sheriff, and that adds weeks.
Protect the deal in the agreement of purchase and sale. Two clauses do most of the work: one where the buyer assumes the tenancy if the unit isn’t vacant on closing, and one allowing an extension by mutual agreement. Both are cheaper than being sued by a buyer who expected an empty house.
If your landlord is selling the house you rent
Short version for tenants:
- Do you have to move? No. Not because of a sale. Only a valid N12 (buyer moving in) or an N11 you signed ends your tenancy.
- Do you still pay rent while it’s listed? Yes. Rent is owed to the seller until closing, then to the new owner. Do not withhold rent over showings.
- Can a new owner evict you? Not for buying the place. They inherit your lease exactly as written.
- What notice must you get for showings? 24 hours in writing, and only between 8 a.m. and 8 p.m.
- Served an N12? You are owed one month’s rent before the termination date, for notices served before September 21, 2026. If it isn’t paid, say so at the hearing.
- Suspect the buyer isn’t really moving in? File a T5. The Board can award up to 12 months’ rent.
Closing day: what transfers
The last month’s rent deposit belongs to the tenant and moves to the buyer on closing, usually as a credit in the adjustments. Ontario prohibits damage deposits, so the LMR is normally the only money in play, and the new owner owes annual interest on it.
Someone must give the tenant written notice of the new landlord’s name and address for service. Hand over the lease, any amendments, the pet or parking side agreements, and the payment history. A buyer who inherits a clean file is a buyer who doesn’t call you in November.
Frequently asked questions
Can I evict a tenant if I want to sell? Not to sell. Wanting to sell is not a ground for eviction in Ontario. The only route tied to a sale is an N12 where the buyer or their close family will genuinely live in the unit, and even then it needs a firm agreement of purchase and sale behind it.
Can I sell my rental property with tenants in it in Ontario? Yes, at any time and without the tenant’s permission. The lease transfers to the buyer, who becomes the landlord on closing.
How much notice do I give a tenant if I am selling? For showings, 24 hours in writing, with entry between 8 a.m. and 8 p.m. To end the tenancy on an N12, a minimum of 60 days, and the termination date must fall on the last day of a rental period.
On what grounds can a landlord evict a tenant in Ontario? Non-payment of rent, persistent late payment, damage, illegal acts, interfering with others, the landlord’s or purchaser’s own use, demolition or major renovation, and conversion. Each has its own form and notice period. A sale, by itself, is not on the list.
Is a text message considered written notice in Ontario? For entry notices, no – not unless the tenant has agreed in writing to receive documents electronically. Without that consent, use a printed notice delivered by hand, under the door, or in the mailbox. Notices served improperly are routinely thrown out at the Board.
Can my landlord evict me because they are selling? No. You can only be required to leave if you sign an N11, or if you receive a valid N12 because the buyer is moving in. If you receive an N12 you are owed one month’s rent as compensation before the termination date.
What can I do if my landlord sells the house I rent? Keep paying rent and stay put. Your lease continues with the new owner on identical terms. If you are served an N12 and suspect the buyer will not actually move in, file a T5 – the Board can award up to 12 months’ rent.
What if the tenant refuses to leave after a valid N12? Only the Sheriff can remove them, on an order from the Landlord and Tenant Board. Changing locks or removing belongings is an illegal eviction and carries a maximum fine of $100,000 for an individual.
Talk to a Toronto real estate lawyer before you serve anything
Zinati Kay has closed real estate transactions across Ontario for over 25 years, with 340+ client reviews and remote signing available across the province. Tenanted and investment properties fall outside our fixed $999 closing package, so call for a quote specific to your sale – we will tell you what the tenancy does to your timeline before you list, not after.
416-321-8766 · john@zinatikay.com
General information about Ontario law as of August 2026, not legal advice for your situation.