Tenant Rights in PEI When Landlords Sell the Property

When your landlord puts your rental property up for sale or sells it in Prince Edward Island, it's natural to feel uncertain about your future as a tenant. Knowing your rights under PEI's rental laws can help you navigate this special tenancy situation confidently and protect your interests.

What Happens to Your Tenancy When the Property Is Sold?

In Prince Edward Island (PEI), tenants are protected by the Rental of Residential Property Act. If the property you live in is sold, your tenancy does not automatically end. In most cases, the new owner becomes your new landlord and must honour your existing rental agreement and its terms.¹

Lease Continuation

Your lease continues under the same conditions after a sale—whether you have a fixed-term or month-to-month tenancy. The new owner inherits all existing agreements and responsibilities, including your right to quiet enjoyment of the unit and any promises for repairs or amenities. For more on your ongoing rights and obligations after signing a lease, see What Tenants Need to Know After Signing the Rental Agreement.

Can the New Owner Evict Me After the Sale?

Landlords (or new owners) in PEI cannot evict tenants simply because the property is sold. Eviction can only happen for lawful reasons, as set out in the Rental of Residential Property Act. The most common scenario is when the buyer intends to live in the unit (“own use”).

• The new (or current) landlord must give you the proper written notice using the official form (explained below).
• For "own use" evictions, you must receive at least two months’ written notice (not counting the day you receive it).
• Notice can only be served after the sale is final (i.e., after the new owner takes possession).

For more details on province-wide tenant and landlord rights, see Tenant Rights and Landlord Rights in Prince Edward Island.

Your Notice and Forms: What to Expect

If the new owner intends to move into your unit or have their close family member move in, they must provide you with notice using the proper government form:

• Form 4 – Notice of Termination by Lessor (Own Use)

This is the official document required for ending a tenancy due to the new owner's personal use. You should receive this form at least two months before your required move-out date.

• View Form 4 – Notice of Termination by Lessor (Own Use) on the PEI government site

Example: If the property is sold on March 1st and the new owner takes possession on April 1st, they cannot give you a Form 4 before April 1st. The earliest move-out date would then be two months after you receive proper notice—so, for example, if you’re served notice on April 2nd, your tenancy would end June 2nd or later.

What If I’m on a Fixed-Term Lease?

If you have a fixed-term lease (for example, until December 31), the new owner usually cannot end your tenancy for “own use” until the end of that period—except in limited circumstances required by law.

Property Showings and Privacy Rights

Your landlord (or their real estate agent) can show the property to potential buyers, but they must follow PEI law:

• They must give you at least 24 hours’ written notice before the showing.
• Showings must be scheduled between 9:00 a.m. and 9:00 p.m.
• You do not have to leave the unit during showings, but you must allow reasonable access.

Your right to privacy continues throughout this process. If you feel your privacy is being violated, you may contact the Island Regulatory and Appeals Commission (IRAC) - Rental Office for help.

Security Deposits: What Happens During a Sale?

Your security deposit is protected during and after the sale of your rental unit. The deposit must be transferred from the old landlord to the new owner, who becomes responsible for returning it when you move out (minus any legitimate deductions). For more about your rights regarding deposits, read Understanding Rental Deposits: What Tenants Need to Know.

How to Respond If You Receive Notice to Move

If you receive a termination notice (like the Form 4), you have the right to:

• Ask the landlord for clarification or for extra time, if needed (they aren’t required to grant it, but it may help).
• Apply to IRAC to dispute the notice if you believe it was issued incorrectly.
• Start searching for a new home—Find rental homes across Canada on Houseme for your next move.

Make sure to keep copies of all notices and correspondence to protect your rights if you need to dispute the notice.

How Do I File an Application with IRAC?

If you wish to challenge an eviction notice or have an issue after the property is sold, take these steps:

• Complete the Application by Lessee form (Form 2)
• Explain your situation thoroughly (why you think the notice is unfair or incorrect)
• Submit the form (online or in person) to IRAC’s Residential Rental Office

Key Rights and Responsibilities After the Sale

• Your rental agreement continues, unless you are served proper notice for a lawful reason.
• The new owner/landlord must honour security deposit rules and property conditions.
• You must continue paying rent as usual and maintain your regular obligations. For more detail on ongoing rights and duties, see Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

Staying informed about your rights makes it easier to handle the sale process with less stress.

Frequently Asked Questions

1. Can I be forced to move out if my landlord sells the property?
   No, not just because of a sale. You can only be required to move if the new owner gives you the proper written notice for a valid reason, such as the owner or their family moving in.
2. How much notice do I get if the new owner wants to move in?
   You must receive at least 2 months’ written notice after the new owner takes possession, using the correct government form.
3. What happens to my security deposit if the property is sold?
   The new owner becomes responsible for your deposit. It remains protected, and you’ll get it back (minus allowed deductions) when you move out.
4. Can the landlord or agent show my unit to buyers at any time?
   No. You are entitled to 24 hours' written notice, and visits must be scheduled between 9 a.m. and 9 p.m.
5. What if I want to dispute an eviction notice?
   You can file an application with IRAC, providing reasons why the notice was not given correctly or is not valid.

Conclusion: Key Takeaways

• Your tenancy and lease continue after a sale unless proper notice is given for reasons allowed under PEI law.
• You are entitled to written notice and specific timelines if the new owner moves in.
• Your security deposit is protected and follows you to the new landlord.

If you’re facing the sale of your rental home in PEI, stay informed and don’t hesitate to seek support if you’re uncertain about any part of the process.

Need Help? Resources for Tenants

• Island Regulatory and Appeals Commission (IRAC) - PEI Rental Office – Official tribunal for all rental disputes and forms
• Government of PEI – Residential Rental Property Information
• Tenant advocacy: PEI’s Housing Assistance Services
• For national context, see Tenant Rights and Landlord Rights in Prince Edward Island

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1. Rental of Residential Property Act, official government source
2. PEI Rental Office (IRAC): application forms and dispute resolution
3. Form 4 – Notice of Termination by Lessor (Own Use)
4. Form 2 – Application by Lessee

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