Investors selling a rented condo or house in Ontario have two paths: sell with the tenant in place, or sell vacant. The rules around each are specific, and getting them wrong is expensive.
Selling with the tenant in place
The tenancy continues under the new owner on the same terms. You must give the tenant 24 hours’ written notice for each showing, at reasonable times, and you cannot make them leave for showings. Investors buying for income are your market, and a good tenant paying market rent is a selling point. A tenant paying well below market is a discount.
Selling vacant
A landlord cannot end a tenancy simply because the property is being sold. If the buyer intends to live in the unit (or a close family member does), the buyer can ask you to serve an N12 notice on their behalf once there is a firm agreement of purchase and sale. The N12 requires at least 60 days’ notice ending on the last day of a rental period, one month’s rent in compensation to the tenant (or an acceptable alternative unit), and it is only available where the building has three or fewer residential units. The buyer must genuinely intend to occupy for at least a year. Tenants can dispute the notice at the Landlord and Tenant Board, which takes time, so price the timeline into the deal.
Cash for keys
A negotiated, written agreement (Form N11) where the tenant agrees to leave on a date in exchange for a payment. Often the cleanest path when the tenant is open to it.
Practical steps
- Talk to the tenant early and honestly.
- Gather the lease, rent ledger, deposit records and any LTB history.
- Decide whether to market to investors or end users before listing, because it changes the price, the photos and the showing plan.
We sell tenanted properties across Toronto, Vaughan, Mississauga and Oshawa, and we manage the notices and showings so the sale does not end up at the tribunal. Ask for a evaluation and tell us about the tenancy.
Thinking about a move? Get a request a home evaluation, browse our listings or talk to the team.
