Question: What Rights Do Tenants Have When the House Is Being Sold in Ontario?
Answer: Rights that tenants have when the house is being sold include: Your lease agreement continues under the new owner. Landlords must provide 24 hours’ written notice for showings. A new owner can only end the tenancy for their own use by serving an N12 form, requiring 60 days’ notice and one month’s rent as compensation.
Your Rights When Your Landlord Sells the Property
A “For Sale” sign on your lawn can cause immediate stress. You likely have many questions and concerns about your future. A common question tenants may ask is what rights do tenants have when the house is being sold in Ontario? The law gives you significant protections. Your tenancy does not simply end because the property is listed for sale. Your landlord must follow specific rules, and you retain important rights throughout the entire process. This ensures your privacy is respected and your home remains your home.
Knowing your rights is the first step to feeling secure during this period of change. The Residential Tenancies Act outlines the obligations of your landlord and the rights you hold as a tenant. These rules cover everything from how and when potential buyers can view your home to the conditions under which your tenancy can be terminated. Understanding these regulations empowers you to ensure the sale process happens smoothly and legally, with minimal disruption to your life. This knowledge helps you communicate effectively with your landlord and any potential new owners.
Landlord Entry for Property Showings
Your landlord has the right to show your rental unit to potential buyers. However, this right is not unlimited. The law requires your landlord to provide you with at least 24 hours of written notice before each entry. This notice must clearly state the reason for entry, which in this case is to show the home to a prospective purchaser. It must also specify the exact date and a time of entry. The law restricts these entry times to between 8:00 a.m. and 8:00 p.m. You do not need to be home for the showing to occur.
The landlord or their real estate agent must be present for the showing. They cannot just give the key or a lockbox code to a potential buyer. Speaking of lockboxes, a landlord can only place one on your door with your permission. You are not required to agree to a lockbox. If you receive a notice that does not meet the legal requirements, such as less than 24 hours’ notice, you can refuse entry. While you must allow reasonable access, you can also object to an excessive number of showings that disrupt your right to quiet enjoyment of your home.
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Rules for Eviction When a Property Sells
A landlord cannot evict you simply because they want to sell the property. Their desire to sell is not a valid reason for termination under the law. However, the situation changes once there is a firm agreement of purchase and sale. The new buyer can ask the current landlord to provide an eviction notice if the buyer, or a close family member, intends to move into the unit for their own personal use. This is a specific legal reason for ending a tenancy, often called “purchaser’s own use.”
This process requires a specific form, the N12: Notice to End your Tenancy. The notice must give you at least 60 days to move out, and the termination date must be the last day of a rental period. For example, if you pay rent on the first of the month, the 60-day period must end on the last day of a month. In addition, the landlord must give you compensation equal to one month’s rent. They must pay this on or before the termination date. If you believe the notice was given in bad faith, you have the right to challenge it at the Landlord and Tenant Board.
Your Right to Privacy and Quiet Enjoyment
During the sale process, you continue to have a right to the quiet enjoyment of your home. This legal right means your landlord cannot unreasonably disturb you. While you must accommodate showings with proper notice, the process should not become a constant intrusion. An endless stream of visitors can violate your right to privacy. If you feel the number of showings is excessive, you should first try to discuss it with your landlord. You might suggest limiting showings to certain days of the week or a few hours each day to create a more predictable schedule.
This right also extends to photographs and marketing materials. Your landlord needs to take pictures to sell the property. However, they should get your consent before taking photos or videos that prominently feature your personal belongings. You can ask them to be mindful of your possessions. Many tenants temporarily store personal items like family photos to protect their privacy. If communication with your landlord fails to resolve issues with excessive showings or privacy concerns, you can seek assistance from the Landlord and Tenant Board for a resolution.
“Cash for Keys” Agreements
Sometimes, a landlord or a new buyer will want the property to be vacant for the sale. In this situation, they might offer you a “cash for keys” agreement. This is a negotiation where the landlord offers you a sum of money in exchange for you agreeing to move out by a specific date. This is a completely voluntary arrangement. You are under no obligation to accept any offer. You have the right to remain in your home until a tenancy is ended legally through the proper notice and process.
If you decide to accept an offer, it is vital to get the agreement in writing. The correct legal form for this is an N11: Agreement to End the Tenancy. Both you and your landlord must sign this form. It solidifies the termination date and protects both parties. Never agree to move out based on a verbal promise alone. The N11 form makes the agreement official and legally binding. A cash for keys deal can be a win-win situation. The landlord gets vacant possession, and you receive financial compensation that can help with your moving costs.
Protecting Your Tenancy During a Sale
Facing the sale of your rental home can feel unsettling, but your rights provide a strong foundation of security. Remember the key protections available to you. Your landlord must give you 24 hours’ written notice for showings, which are restricted to reasonable hours. Most importantly, your lease does not end with the sale; the new owner inherits your tenancy agreement and all its terms. Eviction is only possible under specific circumstances, such as for the purchaser’s personal use, and requires a formal notice and compensation.
Throughout the process, open communication can solve many potential problems. Try to work with your landlord to establish a reasonable showing schedule. Always keep detailed records of all communication, including notices, emails, and any formal agreements like an N11 form. If a dispute arises that you cannot resolve directly, the Landlord and Tenant Board is the proper venue for a formal resolution. Knowing your rights empowers you to manage this transition with confidence. You can protect your home and ensure that your landlord and any potential buyers respect your tenancy.
