Tenant Rights When a Landlord Sells a Rental in PEI

If your landlord decides to sell the property you’re renting in Prince Edward Island, it can feel stressful and uncertain. Knowing your rights can make the process less confusing and help you plan the next steps with confidence. In PEI, both tenants and landlords have obligations under provincial law when a rental property is sold. This article will guide you through what typically happens, your protections, necessary forms, and answers to common questions about sales and ending tenancies.

What Happens When a Landlord Sells a Rental Property in Prince Edward Island?

When a landlord sells a rental property in PEI, the existing tenancy does not automatically end. The Rental of Residential Property Act protects tenants and outlines exactly how a tenancy can be ended and what notice must be given.

Can the New Owner Evict Me Right Away?

No. The new owner must respect your existing lease or rental agreement. If you have a fixed-term lease, you can remain until the lease expires. If you are month-to-month, there are only certain legal reasons a landlord—or their buyer—can ask you to move out.

• If the buyer or a close family member wants to move in, or plans a major renovation that requires vacant possession, the landlord can give notice to end the tenancy for personal use or major repairs only.
• In all cases, proper notice and the correct forms must be used.

Your Legal Rights and Required Notices

Tenants must receive written notice if their tenancy will be ended because the new owner needs the property for personal use or renovations. The law requires:

• At least 2 months’ written notice for ending a month-to-month tenancy (for purchaser's use)
• The correct use of official forms (see below)
• Tenants to receive the notice no later than the end of a rental period
• The right to apply for a review of notice if you believe it’s not for a legitimate reason

Official Forms Used in PEI

• Form 4: Notice of Termination by Lessor – Purchaser's Own Use
  • View the official Form 4
  • This form must be provided if the new owner, or their immediate family member, intends to move in and end your tenancy.
  • Example: Your landlord sells to someone who wants to move in. They provide you with a completed Form 4 at least 2 months before you must leave.
• Form 6: Application by Lessee for Compensation/Order
  • View official Form 6
  • If you believe the notice was improper, or you want to request compensation (e.g., if the notice was not given legally), you can apply to the Residential Tenancy Office with Form 6.
  • Example: The new owner asks you to leave without proper notice. You fill out Form 6, submit it, and the matter is reviewed by the Residential Tenancy Office.

The Residential Tenancy Office and PEI Tribunal

Residential tenancy matters in PEI are handled by the Residential Tenancy Office. This is the government branch responsible for enforcing tenant and landlord rights, processing forms, and hearing disputes about rental issues like evictions and deposits.

What About Rental Deposits and Moving Out?

If your tenancy ends because of a sale, your rights regarding your security deposit are protected. The landlord must return your deposit within 10 days of move-out, minus any lawful deductions.

For details about deposits, see Understanding Rental Deposits: What Tenants Need to Know.

See Tenant Rights and Landlord Rights in Prince Edward Island for a detailed overview of provincial rules and protections.

Other Important Considerations for Tenants

• Your right to “quiet enjoyment” continues throughout a sale – the landlord must give 24 hours’ written notice before showing the unit to buyers.
• Your rent cannot be increased just because of a sale. Learn more in the Understanding Rent Increases: What Tenants Need to Know guide.
• If you feel pressured or receive unclear notices, contact the Residential Tenancy Office for guidance.

Always keep documentation of all communications and copies of any notices you receive.

For those looking to move following a property sale, you can Browse apartments for rent in Canada using intuitive map and filter options.

FAQ: What Tenants in PEI Need to Know About Sales

1. Does selling the house automatically end my tenancy?
   No, the sale itself does not end your lease or month-to-month tenancy. Only approved legal notice can end your rental agreement.
2. How much notice do I get if the buyer wants to move in?
   You are entitled to at least 2 months’ written notice using Form 4. The notice must be for a valid reason (owner or immediate family use).
3. Can my rent increase because the property was sold?
   No. Rent increases are regulated in PEI and are not linked to sales. Proper legal notification is still required for any increase. See the guide on rent increases for details.
4. Who returns my deposit if I move out after a sale?
   The landlord or their agent must return your deposit within 10 days of move-out. You may apply to the Residential Tenancy Office if there’s a dispute.
5. What should I do if I get a notice that seems invalid?
   Contact the Residential Tenancy Office right away, and consider filing Form 6 to dispute the notice or seek compensation.

Need Help? Resources for Tenants

• Residential Tenancy Office PEI – Get forms, information, and file disputes
• Phone: 1-800-501-6268
• Email: rentalinquiries@gov.pe.ca
• Official PEI rental forms and guides
• Further info: Tenant Rights and Landlord Rights in Prince Edward Island
• Local legal aid: PEI Community Legal Information, Tenant and Landlord resources

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1. Rental of Residential Property Act (Prince Edward Island)
2. Residential Tenancy Office – Government of PEI
3. PEI Rental Forms and Notices
4. PEI Community Legal Information – Tenants and Landlords

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