What lease details should a buyer request in writing from the seller before buying a tenanted property?
Before buying a tenanted property, ask the seller in writing for the current rent and exactly what it includes, whether the tenancy is fixed-term or month-to-month, the lease's start date, the amount of any last month's rent deposit held and any accrued interest owing on it, whether there are any current arrears, and whether any Landlord and Tenant Board application or dispute is pending or recently resolved. Together, these details tell you what tenancy you are actually stepping into as the new landlord.
It is also worth asking about any informal arrangements the current landlord has made with the tenant, such as included parking or storage, since these are easy to miss in a written lease but can still form part of what the tenant reasonably expects. Getting these confirmed in writing, either through a dedicated tenant estoppel or tenancy statement or as specific representations in the Agreement of Purchase and Sale, protects you if something turns out differently than described. A verbal assurance from the seller or their agent is not the same as a documented answer you can rely on after closing.
Key takeaways
- Request current rent, lease type, deposit amount and interest, arrears, and any pending LTB matters in writing.
- Ask about informal arrangements too, since these often fall outside the written lease itself.
- A tenant estoppel statement or specific APS representations document these details reliably.
- A verbal assurance from the seller is not something you can rely on if it later proves incorrect.