If your landlord sells the building where you rent, you may worry about who keeps your deposit and how to get it back. In Ontario, tenant protections and the Residential Tenancies Act[2] set rules for last month's rent deposits, interest and transfers to a new owner. This guide explains what typically happens when a property is sold, how deposit transfers or refunds should be handled, what evidence tenants should keep, and when to apply to the Landlord and Tenant Board[1]. Practical tips cover conversations with the landlord or buyer, documenting payments, and filing a claim if the deposit is not returned. Read on for clear next steps for Ontario renters and tenants facing a sale.
Who holds the deposit when a property is sold?
When the landlord sells the property, the deposit does not automatically disappear. Typically the seller transfers tenant records and any held deposits to the buyer as part of the sale closing. If the buyer becomes the new landlord, they are generally responsible for the deposit under the Residential Tenancies Act.[2] If the seller does not transfer the deposit, the tenant can ask for a refund or request the buyer to confirm receipt in writing.
Practical steps to protect your deposit
- Gather payment records, receipts and bank statements that prove the deposit was paid.
- Ask the current landlord in writing whether the deposit will be transferred or refunded and request written confirmation of the buyer's acceptance.
- Keep timelines in mind: ask for a written response and follow up within a few business days if you do not hear back.
- If the deposit is not returned or transferred, prepare to file an application to the Landlord and Tenant Board to claim the money.
When you ask the landlord or buyer in writing, be specific: state the deposit amount, date paid, and request confirmation of where the funds are held. If you rely on verbal assurances, follow up immediately by email to create a record.
What if the buyer says they never received the deposit?
If the buyer denies receiving the deposit, present your proof of payment. If the seller already spent the money and cannot repay, you can file an application with the Landlord and Tenant Board to recover the deposit. The Board enforces the Residential Tenancies Act and hears disputes about deposits and other tenancy matters.[1]
Examples of evidence to use
- Receipts or written notes from the landlord acknowledging the deposit.
- Bank transfer records, cancelled cheques, or payment app history showing the deposit amount and date.
- Copies of lease clauses about deposits or correspondence about the sale.
If you plan to move after a sale
If you decide to find a new place because of a sale, start documenting your move-out condition and ask for a final inspection. For deposit interest and return rules when moving out, see the guide on How to Get Your Security Deposit Back with Interest When Moving Out. If you need to search for a replacement rental quickly, Find rental homes across Canada on Houseme to check listings in your area.
When to apply to the Landlord and Tenant Board
Use the Board when informal requests fail. An application asks the Board to order a refund or other remedy. You can file to recover deposits, unpaid interest where applicable, or to resolve disagreements about transfer responsibilities. See the Board's instructions for how to apply and what evidence to bring.[1]
Related tenant resources
To understand deposits in more detail, read Understanding Rental Deposits: What Tenants Need to Know for general rules and common scenarios.
FAQ
- Can a landlord transfer my deposit to a new owner without telling me?
- No. The landlord should provide notice or documentation about the transfer. If you don't receive confirmation, ask in writing and keep records.
- What if the seller spent the deposit and can't repay it?
- File an application with the Landlord and Tenant Board to recover the deposit; bring proof of payment and any correspondence.
- Do I get interest on my deposit in Ontario?
- Interest rules vary; review your lease and the Residential Tenancies Act for any obligations and consult the Board if you think interest is owed.[2]
How-To
- Collect all proof of deposit payment: receipts, bank records, and the lease.
- Send a written request to the seller and buyer asking where the deposit is held and request written confirmation.
- If there is no satisfactory response, prepare your evidence and draft an application to the Landlord and Tenant Board.
- File the application and meet any Board deadlines; include all supporting documents and copies for the other party.
- Attend the hearing (virtual or in-person), present your evidence clearly, and follow the Board's decision for enforcement.
Help and Support / Resources
- Landlord and Tenant Board (Tribunals Ontario)
- Residential Tenancies Act, 2006 (e-Laws)
- Ontario.ca: Renting and tenancy
