Ontario Landlord Guide › I'm selling my rental property. What happens to my tenant in Ontario?

I'm selling my rental property. What happens to my tenant in Ontario?

Last updated October 23, 2026 · Written for small Ontario landlords

Short answer: Selling doesn't end the tenancy. The tenant stays on the same terms with the new owner unless the buyer, or the buyer's spouse, child, parent or caregiver, will move in. Then, once you have a signed agreement of purchase and sale for a building of three units or fewer (or a condo unit), you can give an N12 for the purchaser's own use with at least 60 days' notice, ending on the last day of a rental period or term, and you must pay the tenant one month's rent or offer another unit they accept.

Official source: LTB: Instructions for the N12 notice (updated Sept 21, 2026) · Last checked Oct 2026

If the buyer keeps the tenant

A tenancy can end only in the ways the Residential Tenancies Act allows (s. 37(1)), and a sale isn't one of them. Under the Act, "landlord" includes the owner's successors in title (s. 1(1)), so once the sale closes the buyer becomes the tenant's landlord and the tenancy carries on. Let the tenant know who the new landlord is and where to pay rent from then on.

If the buyer wants to move in: the N12 for a purchaser

You, the current landlord, give the N12 on the buyer's behalf (s. 49). All of these must be true:

A signed agreement of purchase and sale. The LTB's Interpretation Guideline 12 says there must be one before you give the notice, and the LTB can dismiss the application if the sale is a pretense to evict.
Three residential units or fewer. The building can have no more than three units (s. 49(1)). A condominium unit qualifies on its own (s. 49(2)). The LTB dismisses applications for buildings with more than three units (IG12).
The right person moves in. The buyer, the buyer's spouse, a child or parent of either of them, or a caregiver for one of them, and they must need the unit in good faith to live in (s. 49(1)).

Notice period and compensation

At least 60 days, and the termination date must be the last day of a rental period, or the end of the term for a fixed-term lease (s. 49(3)). Add 5 days if you mail it (N12 instructions).
The 120-day option doesn't apply. Since September 21, 2026, a landlord who gives at least 120 days' notice for their own use can skip compensation. That exception is only for the landlord's own use, not a purchaser's (N12 instructions).
One month's rent, paid by you. Pay the tenant an amount equal to one month's rent, or offer another unit they accept (s. 49.1(1)). It must be paid no later than the termination date in the notice (s. 55.1). The duty stays with you as the seller, not the buyer (s. 49.1(2)).
The tenant can leave sooner. After getting the N12, the tenant can end the tenancy earlier by giving you at least 10 days' notice (s. 49(4), (5)).

If the tenant doesn't move out

Only the LTB can order an eviction, and only the sheriff can enforce it (s. 39). File an L2 no later than 30 days after the termination date (s. 69(2)). With it, file a copy of the N12, the Certificate of Service, Schedule B and a declaration or sworn affidavit signed by the person who will move in, saying they need the unit in good faith for their own use (s. 72(1)(b), L2 instructions). The fee is $201, or $186 through the Tribunals Ontario Portal (LTB fees page). IG12 says to give the tenant and the LTB a copy of the agreement of purchase and sale at least 7 days before the hearing. The LTB won't order an eviction unless the compensation was paid or another unit was offered and accepted (L2 instructions).

Showing the unit to buyers

You, or a registered real estate broker or salesperson with your written authorization, can enter to show the unit to a potential buyer with at least 24 hours' written notice (s. 27(2)). The notice must give the reason, the day and a time between 8 a.m. and 8 p.m. (s. 27(3)). See our landlord entry notice guide.

Worked example

You own a duplex. The tenant upstairs pays $2,100 rent on the 1st of each month, month to month. On Thursday, October 29, 2026 you sign an agreement of purchase and sale, and the buyer's daughter will live in the upstairs unit.

You hand the tenant an N12 (purchaser's own use) on Friday, October 30, 2026. 60 days later is Tuesday, December 29, so the earliest valid termination date is the end of that rental period: Thursday, December 31, 2026 (62 days).
If you mail it on October 30 instead, add 5 days. 60 days after Wednesday, November 4 is Sunday, January 3, 2027, so the earliest date becomes Sunday, January 31, 2027.
You pay the tenant $2,100 by Thursday, December 31, 2026, the termination date.
If the tenant stays, file the L2 by Saturday, January 30, 2027 (30 days after the termination date), with the buyer's daughter's declaration.

Where the toolkit helps: The toolkit's LTB-Ready Evidence Pack includes a communication log and a hearing bundle checklist, so the N12, each showing notice, the compensation payment and every message with the tenant are written down with a date. See what is inside the $19 toolkit

Avoid these mistakes

Giving the N12 before a deal is signed. A listing or an offer in talks isn't enough (IG12).
Using it for a fourplex. A building with four or more units doesn't qualify for a purchaser's own use, unless it's a condo unit.
Expecting the buyer to pay the month's rent. It's the seller's duty (s. 49.1(2)).
A buyer who never moves in. A former tenant has one year after moving out to apply to the LTB if the notice was in bad faith (s. 57(1)(b), (2)). The LTB can order up to 12 months' rent as general compensation, plus higher rent and moving costs (s. 57(3)). IG12 notes the Court of Appeal held the purchaser can be ordered to pay too.
Telling the tenant they must leave because the house sold. Without a valid N12, they don't. A tenant who wants to leave can sign an N11 agreement to end the tenancy instead.

Moving in yourself or a family member, rather than selling? See the N12 for the landlord's own use.

Official sources

Not legal advice. This site is general information written by a small Ontario landlord, based on official Ontario and Tribunals Ontario sources as of October 23, 2026. Laws and LTB forms change; check the linked official source before you act, and talk to a lawyer or licensed paralegal (or call the LTB at 1-888-332-3234) about your situation. Not affiliated with the Government of Ontario, Tribunals Ontario or the Landlord and Tenant Board. Full disclaimer.