If you rent a home in Ontario and your landlord is selling the property, the sale does not automatically end your tenancy. Ontario’s Residential Tenancies Act, 2006 protects tenants during a sale and sets rules for notices, showings, deposits and evictions.
This guide explains what happens to your lease when the landlord sells, when a buyer may ask you to move, what Form N12 means, and what you can do if you disagree with an eviction.
What Happens to Your Lease When the Landlord Sells?
Your lease does not automatically end because your landlord puts the property up for sale or sells it. The buyer becomes your new landlord and takes over the existing landlord’s rights and responsibilities. Your tenancy, rent and lease terms remain in effect unless the buyer, or an eligible family member, intends to move into the rental unit.
- Tenant Rights in Ontario protect your lease during and after a sale.
- A sale by itself is not enough to end your tenancy. Only specific lawful circumstances allow an eviction.
Can You Be Asked to Move Out?
A landlord or new owner may be able to end your tenancy in certain circumstances, but strict rules apply. One common reason is purchaser’s own use, when the buyer or an eligible family member genuinely intends to move into the unit. Eviction for renovation or demolition also has requirements.
A verbal request to leave is not the same as a valid eviction notice. Do not assume that you must move immediately because the property has been sold.
Required Eviction Notice: Form N12
If the new owner intends to occupy the rental unit personally, or have a close family member occupy it, you may receive an official Notice to End your Tenancy because the Landlord, a purchaser, or a family member requires the rental unit (Form N12).
- Form Name & Number: Notice to End your Tenancy because the Landlord, a purchaser, or a family member requires the rental unit (Form N12)
- When Used: The landlord or buyer must use this form when they, or an eligible family member, intend to move into the unit.
- Notice Period: You must receive at least 60 days’ notice before the end of a rental period.
- Official Resource: Landlord and Tenant Board Forms
The termination date must match the end of a rental period. For example, if rent is due on the first day of each month, the notice must provide at least 60 days and end on the last day of a rental period.
Your Rights When Served an N12 Notice
Receiving an N12 does not mean that you must leave immediately. You have important protections while the notice and any LTB application are being dealt with.
- The new owner must genuinely intend to move into the unit, and the process is regulated.
- Your tenancy remains active until the notice expires or an eviction order is issued by the Landlord and Tenant Board (LTB).
- You do not need to leave simply because the notice period has ended; if you do not agree to move, the LTB must issue an eviction order.
After an N12 is served, the landlord or purchaser must apply to the LTB for approval to end your tenancy if you do not agree to leave.
Compensation Owed to You
When a tenancy is ended with an N12 because of a sale for purchaser’s own use, Ontario law requires the landlord to pay the tenant the equivalent of one month’s rent or offer another acceptable unit. This compensation applies when the tenancy is ended for that reason.
Showings and Access During the Sale Process
Your landlord may need access to show the property to prospective buyers or agents, but you still have privacy rights. The landlord must:
- Give at least 24 hours’ written notice before showing the unit to prospective buyers or agents
- Show the property only between 8 a.m. and 8 p.m.
- Not harass or pressure you to leave because of showings
For more information about your responsibilities after signing a rental agreement, visit What Tenants Need to Know After Signing the Rental Agreement.
What Happens to Your Rental Deposits?
Your last month’s rent deposit must be transferred to the new landlord after the sale. The deposit remains in place and is protected by law. For more information, see Understanding Rental Deposits: What Tenants Need to Know.
Other Key Considerations
If you are a month-to-month tenant, you are entitled to a full 60 days’ proper written notice on Form N12, when that form applies. You are not required to leave on shorter notice unless you choose to negotiate a voluntary agreement.
A fixed-term lease cannot be ended before it expires unless there are legal grounds under the Residential Tenancies Act, 2006.
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For More Information
- Landlord and Tenant Board (LTB): The official tribunal handling residential tenancy matters in Ontario. Visit the LTB website for forms, filing information and updates.
- Legislation: The rules come from the Residential Tenancies Act, 2006.
Frequently Asked Questions
- Can I be evicted immediately if the landlord sells?
No. A sale does not automatically end your tenancy. You can only be evicted for a lawful reason after proper notice and, if you do not agree, an LTB hearing and eviction order. - What notice do I get if the new owner wants to move in?
You must receive at least 60 days’ written notice on Form N12, and the termination date must align with your rental period. - Am I owed compensation if I am asked to move because of the sale?
If the tenancy is ended by an N12 for purchaser’s own use, the landlord must pay one month’s rent or offer another acceptable unit. - Does my deposit transfer to the new landlord?
Yes. Your last month’s rent deposit transfers to the new landlord and remains protected by law. - What can I do if I think the new owner will not really move in?
You can challenge the eviction at the LTB. If you believe the notice was given in bad faith, you may be entitled to additional compensation.
Conclusion
- Your tenancy does not automatically end when the property is sold; your lease and deposit remain protected by law.
- Eviction is possible only for specific lawful reasons, with proper notice and LTB approval when required.
- You may have a right to compensation and can challenge an eviction if you suspect bad faith.
Knowing your rights when a landlord sells your Ontario rental can help you respond to notices, protect your deposit and decide whether to stay or move.
Need Help? Resources for Tenants
- Landlord and Tenant Board (LTB) – Official Site
- Residential Tenancies Act, 2006 (legislation)
- Ontario – Community Legal Clinics (free tenant help)
- LTB Guide to the Residential Tenancies Act
- Landlord and Tenant Board (LTB) – Ontario’s official residential tenancy tribunal
- Residential Tenancies Act, 2006 – Ontario's governing tenant law
- Landlord and Tenant Board Forms – Official tenancy forms, including Form N12
