Tenant Rights When Property Is Sold in NL: Complete Guide

When your rental unit is sold in Newfoundland and Labrador, it’s natural to worry about your home and your rights as a tenant. The Residential Tenancies Act protects both tenants and landlords throughout this process, ensuring fairness and clarity. Below, you'll find clear guidance tailored for tenants, including what to expect, official forms you may encounter, and how to take action if needed.

What Happens When a Rental Property Is Sold?

A sale does not automatically end a tenant’s lease or tenancy agreement. Your rights remain protected even if the landlord changes. This means the new owner generally becomes your new landlord and must honour all existing terms of your rental agreement until proper notice is given or your lease expires.

Lease Types: Fixed-Term vs. Month-to-Month

• Fixed-term lease: If you signed for a set period (e.g., one year), your lease continues until the end date, regardless of a sale.
• Month-to-month tenancy: The new owner takes on the landlord role and can only end the tenancy by following legal steps.

For details about your obligations during and after the lease, see Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

When Can a Tenant Be Asked to Move Out Because of a Sale?

A tenant may be required to move only if the property buyer (the new owner) or their immediate family plans to move in. The new landlord or seller must give you a proper legal notice before asking you to vacate.

Legal Notice Requirements

• Notice Period: In most cases, you must receive at least two months’ written notice before being asked to move out due to a sale where the buyer will occupy the unit.
• Written Notice: The notice must clearly state the reason (e.g., new owner or close family member taking occupancy).

It’s important to know that a verbal request or a simple message from a realtor does not count as legal notice. Protect yourself by asking for written communication.

Official Forms Tenants May Receive

Depending on the situation, you may receive official notices, such as:

• Notice to Terminate Tenancy at the End of Rental Period (Form RTB-10): If the purchaser or their family is moving in, this form must be used.
  Example: Your landlord notifies you with this official form after the sale closes, stating that the buyer is moving in at the end of your lease.
  Download Form RTB-10 from Government of Newfoundland and Labrador
• Notice to Terminate for Material Breach (Form RTB-11): Not related to sale, but used if there are major lease violations.

Always double-check that any termination notice uses the correct official form. Find out more about your overall rights in Tenant Rights and Landlord Rights in Newfoundland and Labrador.

Your Security Deposit and Other Considerations

When your landlord sells the property, your security deposit remains protected. The new owner must take responsibility for the deposit and return it at the end of the tenancy, provided all conditions are met. For tips on this process, see Understanding Rental Deposits: What Tenants Need to Know.

Also, your rights to proper repairs, reasonable privacy, and fair treatment continue regardless of a change in ownership.

If You Disagree With the Notice to End Tenancy

If you believe the notice is improper (e.g., the new owner isn’t moving in, or the notice timeline is too short), you can challenge it with the Residential Tenancies Office of Newfoundland and Labrador. The office oversees all residential tenancy issues in the province.

Key Steps for Tenants

• Request all notices and communications in writing.
• Review the notice form for accuracy and required timelines.
• Contact the Residential Tenancies Office if you want to challenge a notice or require clarification.
• Keep copies of all documents and correspondence related to the sale and your tenancy.

Finding Your Next Home

If you must move, Find rental homes across Canada on Houseme to view available listings in Newfoundland and beyond.

FAQ: Tenant Rights When Your Landlord Sells

1. Can the new owner change my lease terms?
   The new landlord must honour the existing lease or tenancy agreement. They cannot change the lease terms without your consent until it ends.
2. What if my landlord gives me less than two months' notice?
   This is not proper notice. You have the right to contest it with the Residential Tenancies Office.
3. Do I get my security deposit back if I move out?
   Yes. The new or existing landlord must return your security deposit at the end of the lease, provided you meet move-out conditions.
4. Does a property sale mean my rent can increase?
   No. Rent increases follow the usual rules and notice. A sale isn’t a valid reason for an immediate rent increase.
5. What should I do if I think the notice is invalid?
   Contact the Residential Tenancies Office as soon as possible to dispute the notice and get guidance on your rights.

Conclusion: What Tenants Should Remember

• A sale does not automatically end your lease or tenancy in Newfoundland and Labrador.
• You are entitled to written notice and official forms if you have to move because the buyer will live there.
• Contact the Residential Tenancies Office for help if you disagree with a notice.

Your rights are protected—understanding the process can help you plan and respond with confidence.

Need Help? Resources for Tenants

• Residential Tenancies Office – Government of Newfoundland and Labrador
  Oversees tenant–landlord matters, processes forms, and handles disputes.
• Newfoundland and Labrador Department of Justice and Public Safety
• Tenant support: Tenants may also contact local community legal clinics for advice or advocacy.
• To review all your rights as a tenant, visit Tenant Rights and Landlord Rights in Newfoundland and Labrador.

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1. Residential Tenancies Act, SNL 2018, c. R-14.2. View Newfoundland and Labrador Residential Tenancies Act
2. Government of Newfoundland and Labrador: Residential Tenancies Office – Official Guidelines and Forms

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