Should I include a condition if I'm buying a tenant-occupied home in Ontario?

Buying a tenant-occupied property in Ontario carries significant legal complexity because tenants have strong rights under the Residential Tenancies Act. If you need the property vacant by closing — for example, because you plan to live there yourself — you need to understand whether and how the tenancy can be terminated and on what timeline.

A seller cannot simply evict a tenant at closing without following the proper legal process. If the current owner has served the tenant a notice to terminate for personal use (N12 notice), there are mandatory notice periods and the tenant has the right to dispute the eviction at the Landlord and Tenant Board, which can take time. A sale does not automatically transfer the right to vacant possession.

Including a condition that vacant possession be obtained by closing — or that the tenancy status be satisfactory to you — gives you an exit if the tenant is not out on time or challenges the eviction. Your real estate lawyer can draft and review the condition language carefully, and can advise you on what the existing tenancy means for your purchase plan.