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Buying a Home With Tenants in Place in Ontario

Thinking of buying an Ontario home with tenants? Learn whether you can get vacant possession, the notice rules, and the 2026 changes before you sign.

Real Estate4 min readTSLBy the Treadstone Law Team · OntarioUpdated October 28, 2026
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Key takeaways
  • Vacant possession is not automatic; a landlord who has signed an agreement of purchase and sale for a property of no more than 3 residential units may serve Form N12 where the purchaser in good faith requires the unit for residential occupation.
  • The N12 notice must give at least 60 days, and the termination date must be the last day of the rental period or lease term.
  • The landlord must generally pay one month's rent or offer another acceptable unit, and filing deadlines apply.
  • The 120-day compensation exemption that took effect September 21, 2026 does not apply to purchaser's own use notices.

Buying a home that has tenants living in it raises a basic question: will you be able to move in, or are you taking on a tenant as part of the deal? A buyer who wants the home empty has to follow set rules, and how they apply depends on the facts of the tenancy.

This article explains the notice process for purchaser's own use, what money and deadlines are involved, and what to settle before you remove conditions. Because the facts of each tenancy differ, speak with a real estate lawyer before you sign.

Do you get vacant possession?

Not automatically. If you want to live in the home yourself, the process runs through the Residential Tenancies Act and the Landlord and Tenant Board. A landlord who has signed an agreement of purchase and sale for a property with no more than 3 residential units may serve Form N12 on a tenant when the purchaser in good faith requires the unit for residential occupation.

Notice that the landlord, who is the seller, serves the notice. Buyers often write the agreement so that the seller must give notice, and the terms of that deal are a matter for your lawyer. If your plan is to rent the home out again or renovate, this route is not available on those grounds.

Notice, timing and compensation

The N12 notice must give at least 60 days, and the termination date must be the last day of the rental period or lease term. That can push the practical move-in date later than people expect, particularly with a fixed-term lease.

For purchaser's own use, the landlord must generally pay one month's rent or offer another acceptable unit. If the tenant does not leave, the landlord has to apply to the Board: the L2 application must be filed within 30 days after the termination date, with an affidavit from the person who will move in.

StepRule
NoticeForm N12, at least 60 days, ending on the last day of the rental period or lease term.
CompensationGenerally one month's rent or another acceptable unit.
If tenant staysL2 application within 30 days after the termination date, with an affidavit from the person moving in.
After the tenant leavesThe person must move in; if not within 60 days, the tenant can file a T5 bad-faith application.

The 2026 changes and what they do not change

Changes effective September 21, 2026 let a landlord skip N12 compensation for own use if the notice gives at least 120 days. However, the Board says this change and the 60-day occupancy presumption do not apply to N12 notices for purchaser's own use. Do not assume a news headline about the new rules applies to your purchase.

The bad-faith risk is real. If the purchaser does not move in within 60 days of the tenant leaving, the tenant can file a T5 application. Only serve or ask for an N12 if you genuinely intend to live in the unit.

If you plan to keep the tenants

If you are buying as an investor, or are happy to keep the tenants, how the arrangement carries over to you depends on your situation, so it is worth confirming with a lawyer. How rent, deposits and lease terms are handled depends on the lease and the agreement of purchase and sale, so have your lawyer review both.

What to do next

Frequently asked questions

Can I make the tenants leave because I bought the house?

Not simply because you bought it. The seller, as landlord, may serve Form N12 if the property has no more than 3 residential units and you in good faith require the unit for residential occupation. The notice must give at least 60 days.

Do I have to pay the tenant to leave?

For purchaser's own use, the landlord must generally pay one month's rent or offer another acceptable unit. Who bears that cost between buyer and seller should be settled in your agreement.

Does the new 120-day rule help me?

No. The Board says the 120-day compensation change and the 60-day occupancy presumption do not apply to N12 notices for purchaser's own use.

What if I do not move in?

If the person does not move in within 60 days of the tenant leaving, the tenant can file a T5 bad-faith application. Get legal advice before relying on this process if your plans are uncertain.

Sources

Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.

This article is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.

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