What happens to an ongoing Landlord and Tenant Board hearing if the rental property is sold partway through?
An ongoing Landlord and Tenant Board proceeding generally does not stop or restart simply because the property changes hands partway through; the new owner typically steps into the previous landlord's position for purposes of that proceeding, since the tenancy and the dispute connected to it continue regardless of who owns the building. This means a buyer can end up taking over an active, unresolved LTB file along with the tenancy itself.
Because this can meaningfully affect what you are actually buying, whether the pending matter involves arrears, a maintenance dispute, or something else entirely, ask specifically during your due diligence whether there is any active or recent Board proceeding connected to the property, rather than assuming a seller will volunteer this information unprompted. Understanding the nature and status of a pending matter before closing lets you and your lawyer assess what involvement you may need to take on as the new landlord, and factor any related risk into your decision to proceed, rather than discovering an active file only after you have already taken over as owner.
Key takeaways
- A pending Landlord and Tenant Board proceeding generally continues despite a change in ownership.
- The new owner typically steps into the previous landlord's role in that proceeding.
- Ask specifically about any active or recent Board matters during your due diligence.
- Understand the nature and status of a pending matter before closing, not after taking over.