Selling a house with tenants in Ontario

Can you sell a house with tenants in Ontario?

Yes. A landlord can sell a rented house, condo or multiplex at any time, and the tenancy carries on. Under the Residential Tenancies Act, the lease's terms "run with the land" (section 18), and the buyer takes over as landlord. A tenancy "may be terminated only in accordance with this Act" (section 37), so a sale on its own never ends it (RTA).

For the tenant, as Steps to Justice puts it: "You do not have to move out just because you get this notice. You can be forced to move only if the Landlord and Tenant Board (LTB) makes an eviction order against you" (Steps to Justice).

That leaves you two ways to sell, and the choice shapes your price, your buyers and your timeline.

Sell it tenanted, or with vacant possession?

Tenanted means the buyer takes over the lease: usually an investor who wants the rent from day one. Vacant possession means the home is empty on closing: what most buyers who plan to live there want. You get there either by agreement with your tenant or, for a buyer who'll move in, by an N12.

Showing a house with tenants: the rules

Your tenant can't stop showings, but the law sets how they happen. You, or an agent you've authorised in writing, may enter "in accordance with written notice given to the tenant at least 24 hours before the time of entry to allow a potential purchaser to view the rental unit" (section 27). The notice must give "the reason for entry, the day of entry and a time of entry between the hours of 8 a.m. and 8 p.m." (RTA). If the tenant agrees at the door, you can enter without notice.

RECO says the same to agents: "A tenant can't prevent registrants and potential buyers from viewing their home, but they must be given at least 24 hours of advance written notice" (RECO).

There's no set limit on the number of showings, but a landlord must not "substantially interfere with the reasonable enjoyment" of the unit (section 22), and a tenant can ask the LTB for a rent abatement. What works in practice:

• Talk to your tenant before you list. Say why you're selling, what happens to their lease, and how showings will work.
• Group showings into a few set windows a week rather than one-offs every day.
• Give every notice in writing, even when the tenant tells you any time is fine.
• Agree the photos. Take them before the tenant's belongings make it hard, or with their OK; RECO lists unauthorised photos among tenants' complaints.
• Put the rules in your listing: "24 hours' notice required, tenant occupied" in the showing instructions, so buyer agents plan for it.

If the buyer wants to move in: the purchaser's N12

Only you, the seller, can serve this notice, and only after you've signed an agreement of purchase and sale. It works when the buyer, their spouse, a child or parent of either of them, or a caregiver "in good faith requires possession" to live there (section 49), and the home is a condo unit or a building with no more than three residential units (RTA).

1. Sign a firm agreement with the buyer that includes vacant possession on closing.
2. Serve the N12 (version 2026/09). The termination date must be at least 60 days after the notice and the last day of a rental period, or the end of a fixed-term lease; add 5 days if you mail it (N12 instructions).
3. Pay the tenant one month's rent (or offer another unit they accept) no later than the termination date. That's your cost, not the buyer's: it "does not become an obligation of the purchaser" (section 49.1).
4. If the tenant stays, file an L2 with the LTB, with the N12, a certificate of service and the buyer's signed declaration that they need the home in good faith (L2 instructions).
5. Close only when the unit is empty. The tenant may stay until the LTB orders otherwise, so build that time into your closing date.

Ending the lease by agreement: the N11 and "cash for keys"

Many sales go quicker when the tenant agrees to leave. You and your tenant sign the LTB's N11 (Agreement to End the Tenancy) with a move-out date you both accept. No other notice is needed (section 37). The tenant can't be pressured: an agreement to end the tenancy is void if it was signed when the lease was, or as a condition of renting.

"Cash for keys" is the usual name for paying a tenant to sign an N11, along with help to move, a free last month or a later date. Nothing in the Act forbids it, and the amount is whatever you agree. Put it in writing and pay it when the keys come back.

Money: deposits, rent and closing

• The last month's rent deposit goes with the tenancy: the buyer must apply it to the last month and can't ask the tenant to pay another one (section 106). Your lawyer usually credits it, with the interest owed, to the buyer on closing.
• Deposit interest is owed every year at the rent increase guideline (2.1% for 2026).
• Rent is adjusted to the closing day, like property tax.
• N12 compensation of one month's rent is yours to pay, even though the buyer wants the unit.
• What buyers will ask for: the lease, the rent and when it's due, the deposit and interest paid, the date of the last rent increase, and whether the unit was first occupied after November 15, 2018 (no rent control on increases).

What changed on September 21, 2026

Ontario's new rules (Bills 60 and 97) mostly affect landlords who keep their units, but three points matter when you sell (LTB update):

• The 120-day rule doesn't apply to buyers. A landlord moving in with at least 120 days' notice no longer pays compensation, but "this change does not apply to N12 notices served for purchaser's own use". You still pay one month's rent.
• New forms. The N12, L2 and others were updated; previous versions "will no longer be accepted as of November 30, 2026".
• Good faith is the test. The buyer's declaration says they need the home in good faith for their own use. If it was in bad faith, the former tenant can apply within a year, and the LTB can order up to 12 months' rent in compensation, moving costs and a fine of up to "the greater of $10,000 and the monetary jurisdiction of the Small Claims Court" (section 57).

How long it takes

If the tenant agrees, it takes as long as the date you sign for. With an N12, plan for at least 60 days plus the end of a rental period. If the tenant disputes it, the LTB says most applications other than unpaid rent "are being scheduled within 5-7 months" (LTB). That's why many sellers either sell tenanted to an investor or settle with an N11 before they list.

This page is general information, not legal advice. Before you serve a notice or set a closing date, talk to a real estate lawyer or a licensed paralegal.

Selling a tenanted property with a flat fee MLS® listing

A flat fee listing puts your tenanted home on the MLS® System and realtor.ca from $69.99 a month, through Robin Hood Realty Limited, Brokerage. Buyer agents' showing requests come straight to you, so you control the notice to your tenant and the showing windows, and offers come to you directly. You choose the tenancy terms in the listing: "tenant to stay" for investors, or "vacant possession" with your plan for it. Learn more about how a mere posting works.

Questions sellers ask about tenants

What's included

• Your property on the MLS® System through PropTx, which feeds 14 Ontario boards, including Toronto (TRREB), Ottawa, London, Niagara and Oakville-Milton
• Your property on realtor.ca, typically followed by MLS®-fed sites such as HouseSigma, Zolo and Condos.ca
• Up to 40 photos, your description, the tenancy details and 24-hour notice in the showing instructions
• Showing requests from buyer agents sent straight to you, so you give your tenant notice and choose the windows
• Price, photo and detail changes while you're listed, plus the conditional and sold updates

Flat fee MLS® prices

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