Landlord and Tenant Issues

Your landlord is selling the house: do you have to move out?

Last updated October 7, 2026.

No. In Ontario a sale on its own does not end a tenancy: your lease, your rent and your rights carry over to the new owner. You only have to leave if the tenancy is ended in a way the Residential Tenancies Act allows. The usual route is an N12 notice for a buyer who will live in the unit, which needs at least 60 days' notice, a building with three or fewer units (or a condominium unit), and one month's rent paid to you.

If you are a tenant facing a sale, or a seller trying to deliver an empty house on closing, our page on help with landlord and tenant issues explains how Carson Frankum, a licensed paralegal in Hamilton, works on Landlord and Tenant Board (LTB) cases.

How does a sale affect a tenancy, step by step?

The rules below come from the Residential Tenancies Act, 2006 (current consolidation, in force from September 21, 2026), the LTB's current N12 and L2 instructions, and LTB Interpretation Guideline 12.

The home is listed. Nothing about the tenancy changes. Section 37(1) says a tenancy may be ended only in accordance with the Act, and a listing or a sale is not one of the grounds. Rent stays due as usual.
Buyers come to look. The landlord, or a registered real estate broker or salesperson with the landlord's written authorization, may enter to show the unit to a potential buyer with written notice given at least 24 hours ahead (s. 27(2)). The notice must state the reason, the day, and a time between 8 a.m. and 8 p.m. (s. 27(3)). Entry without written notice is allowed only in an emergency or if you agree at the time (s. 26(1)).
An agreement of purchase and sale is signed. Only after this can the seller give you an N12 on behalf of a buyer who wants to live there (s. 49(1)). If the buyer does not plan to live in the unit, there is no notice the seller can give you because of the sale.
The seller serves an N12, if the building qualifies. The building must contain no more than three residential units, or the unit must be a condominium unit (s. 49(1) and (2)). The termination date must be at least 60 days after the notice is given and must be the last day of a rental period, or the last day of a fixed-term lease (s. 49(3)).
The seller pays one month's rent, or offers another unit you accept. This is owed for every purchaser N12, however much notice you get (s. 49.1(1)), and it must be paid by the termination date (s. 55.1). The obligation stays with the seller who gave the notice and does not pass to the buyer (s. 49.1(2)).
You decide what to do. You can move out on the termination date, move out earlier by giving at least 10 days' written notice (s. 49(4) and (5)), or stay. Staying does not break any rule: the notice is not an eviction order.
If you stay, the seller must apply to the LTB. The landlord files an L2 application no later than 30 days after the termination date (s. 69(2)). The fee is $201, or $186 through the Tribunals Ontario Portal. The application must come with an affidavit or signed declaration from the person who will move in, confirming they need the unit in good faith for their own use (ss. 71.1(1) and 72(1)(b)), and a list of any N12 or N13 notices the landlord gave in the past two years (s. 71.1(3)).
The LTB holds a hearing. The landlord must show the buyer genuinely intends to live there. The LTB guideline says the landlord should give the tenant and the Board a copy of the agreement of purchase and sale at least 7 days before the hearing. Even if the landlord proves the case, the Board must consider whether to refuse or delay the eviction (s. 83), and for an N12 it may delay it if that would not be unfair to the landlord or other tenants (O. Reg. 516/06, s. 8.4).
Closing. If no valid notice ended the tenancy, the buyer simply becomes your landlord. The Act's definition of "landlord" includes the owner's successors in title (s. 2(1)), and the promises in your tenancy agreement run with the land (s. 18).

For a sense of how long the LTB route can take once an application is filed, see how long an eviction takes in Ontario.

When a rented home is sold in Ontario: the key rules (Residential Tenancies Act, 2006 and LTB, read October 7, 2026)
Question	The rule	Where it comes from
Does the sale end the lease?	No. The tenancy continues with the new owner	ss. 2(1), 18, 37(1)
Showings to buyers	Written notice at least 24 hours ahead, stating reason, day and a time between 8 a.m. and 8 p.m.	s. 27(2), (3)
When a buyer's N12 is possible	Only after an agreement of purchase and sale, for a building of three or fewer units or a condominium unit	s. 49(1), (2)
Who may move in	The buyer, the buyer's spouse, a child or parent of either, or their caregiver	s. 49(1)
Minimum notice	60 days, ending on the last day of a rental period or fixed term	s. 49(3)
Compensation	One month's rent or another unit you accept, paid by the termination date, always owed on a buyer's N12	ss. 49.1, 55.1
Leaving early	At least 10 days' written notice (Form N9)	s. 49(4), (5)
Landlord's L2 deadline and fee	No later than 30 days after the termination date; $201, or $186 online	s. 69(2); LTB fee schedule
If the buyer never moves in	T5 application within one year after you move out	s. 57(1)(b), (2)
Your rent deposit	A new landlord cannot require a second deposit if you paid one to the seller	s. 106(4)

Who counts as the buyer's family?

The list in section 49(1) mirrors the one for a landlord's own use. The unit can be needed for residential occupation by the purchaser, the purchaser's spouse, a child or parent of the purchaser or the purchaser's spouse, or a person who provides or will provide care services to one of them, as long as the person receiving care lives, or will live, in the same building or related group of buildings. A brother, sister, grandchild or cousin of the buyer is not on the list.

One difference from a landlord's own-use notice is worth knowing. The LTB guideline points out that for a purchaser's N12 the Act does not say the occupant must live there for at least one year, although the buyer's intention to move in still has to be genuine. If your own landlord, rather than a buyer, wants the unit, the rules are in our page on when a landlord can use an N12 to move in or house family.

What changes the answer?

The size of the building. A purchaser's N12 is limited to a residential complex with no more than three residential units (s. 49(1)). The LTB guideline says an application for a bigger building will be dismissed. The exception is a condominium unit, where the number of units in the building does not matter (s. 49(2)).
Whether a deal is really in place. The notice needs an agreement of purchase and sale. The LTB guideline says the Board may refuse the application if it is not reasonably certain the sale will close, or if the "sale" is a pretence, such as a transfer to a relative or a price far below market value. Section 202 tells the Board to look at the real substance of transactions.
What the buyer plans to do. A buyer who wants a vacant house to rent to someone else, or to resell, has no ground to end your tenancy. If the buyer plans major work that needs a permit and an empty unit, the right notice after closing is an N13, with different rules; see how an N13 for renovations or demolition works.
Condominium conversions and severances. A landlord cannot give an N12 to a tenant who was already there when the building became a registered condominium, or when the unit was severed or subdivided (ss. 51 and 56).
A fixed-term lease. If you are in the middle of a one-year lease, the termination date must be the last day of the term (s. 49(3)), so the notice cannot cut the lease short.
An agreement instead of a notice. A landlord and tenant can agree to end a tenancy (s. 37(3)), usually on Form N11. The terms are whatever you both sign, and the N12 compensation rules do not apply to that agreement; see how an N11 agreement to end a tenancy works.
Retaliation or serious breaches. The Board must refuse an eviction if the landlord is in serious breach of their obligations, or if the application was brought because you tried to enforce your rights (s. 83(3)).

A worked example

For example, imagine a Hamilton tenant named Priya who rents the main floor of a duplex month to month for $1,650, due on the first. Her landlord lists the house in October 2026. The agent sends a written notice on a Thursday morning to show the unit on Friday at 6 p.m., which meets the 24-hour rule and the 8 a.m. to 8 p.m. window.

On November 3, 2026, the landlord signs an agreement of purchase and sale with a buyer who plans to live in Priya's unit with her spouse. The duplex has two units, so a purchaser's N12 is available. The landlord hands Priya the N12 on November 5. Sixty days later is January 4, 2027, so the earliest valid termination date is January 31, 2027, the last day of a rental period. The landlord owes Priya $1,650 (or another unit she accepts) by January 31, and giving her more notice would not remove that duty.

Priya decides to stay and see whether the buyer is real. The landlord files an L2 in early February with the buyer's declaration, and sends Priya the agreement of purchase and sale before the hearing. If the Board finds the buyer genuinely intends to move in, it can order the tenancy to end, possibly with a delay. If Priya leaves and the buyer never moves in, she has one year after moving out to file a T5 naming both the seller and the buyer; our page on what a tenant can do after a bad-faith eviction covers that claim. This is a made-up example to show the timing, not a real case.

What mistakes do tenants and sellers make?

Moving out because of a sign or a phone call. A listing, a verbal request or an email is not a notice under the Act. A tenant who leaves without an N12 has no N12 compensation to claim, because the one month's rent is tied to the notice.
Accepting an N12 that cannot apply. A purchaser's N12 given before an agreement of purchase and sale exists, or for a non-condominium building with four or more units, does not meet section 49.
Blocking a lawful showing. Ontario's guidance on rental disputes says a tenant can commit an offence by stopping a landlord from entering after a lawful notice to enter. If showings feel excessive, keep a log rather than refusing at the door.
Sellers assuming the buyer pays the compensation. Section 49.1(2) keeps the obligation with the landlord who served the notice. If it is unpaid when the termination date passes, the LTB guideline says the application will usually be dismissed.
Signing an N11 without reading it. An agreement to end the tenancy can be enforced quickly, and it does not carry the protections of an N12 unless the terms say so.

What to do this week

Keep paying rent as usual and keep the receipts or bank records.
Read any notice you get and check its form number. A showing notice is not an N12, and an N12 is not an eviction order.
If you received an N12, ask in writing whether an agreement of purchase and sale has been signed, and count how many residential units are in the building.
Check the termination date: at least 60 days away and on the last day of a rental period or the end of your lease.
Write down when and how one month's rent will be paid to you, and keep proof when it arrives.
For showings, keep each written notice and note the times people actually came in; our article on privacy and entry by landlords explains the general entry rules.
If you would rather leave early on your own terms, consider whether assigning or subletting your unit or an N9 with 10 days' notice fits your plans better.
If the home is in Hamilton, see how an LTB case works for a Hamilton rental for local supports.

Frequently asked questions

Does the new owner have to honour my lease?

Yes. The Act treats a successor in title as the landlord, and the covenants in your tenancy agreement run with the land (ss. 2(1) and 18). Your rent, your lease terms and any unexpired fixed term stay the same after closing.

Can the new owner raise my rent because they bought the house?

No, the sale does not reset the rent. Any increase must follow the usual rules, including at least 12 months since your last increase or since you moved in, and at least 90 days' written notice on the approved form (ss. 116 and 119).

What happens to my last month's rent deposit?

It stays tied to your tenancy. A new landlord cannot require you to pay another rent deposit if you already paid one to the prior landlord (s. 106(4)). Ask the seller in writing to confirm the deposit is being passed to the buyer at closing.

How often can the landlord show the unit?

The Act does not set a number, but each entry to show a buyer needs written notice at least 24 hours ahead, with a time between 8 a.m. and 8 p.m. (s. 27). A landlord also must not substantially interfere with your reasonable enjoyment of the unit (s. 22), and an illegal entry can be raised in a T2 application within one year (s. 29).

Can the buyer give me their own N12 after closing?

Once the sale closes, the buyer is your landlord. If the buyer is an individual and wants the unit for themselves or close family, they can give an N12 for landlord's own use under section 48, with its own notice and compensation rules, including the 120-day option for notices served on or after September 21, 2026.

What if the sale falls through after I got an N12?

The notice depends on the sale. The LTB guideline says the Board may refuse the application if a completed sale is not reasonably certain, and a deal that collapses leaves no buyer to move in. If you had already moved out because of the notice and nobody on the list moved in within a reasonable time, the facts may support a T5 application.

What if I disagree with the LTB's decision?

You can ask the LTB to review an order within 15 days of when it was issued, for orders issued on or after July 1, 2026, in limited situations such as a serious error; see what to do if you disagree with an LTB order. An appeal on a question of law goes to the Divisional Court within 30 days (s. 210), and that step is in the Divisional Court, where you would need a lawyer.

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This page gives general information about Ontario law, not legal advice for your situation. Cheddar Paralegal PC is a paralegal firm licensed by the Law Society of Ontario; licensed paralegals can help only with matters the Law Society allows paralegals to handle.