Landlord Selling a Rented Home: Tenant Rights in Ontario

A rented house or condo is going on the market. If you are the tenant, you may wonder about strangers walking through and whether you will have to leave. If you are the landlord, you want a smooth sale without breaking the rules.

In Ontario the Residential Tenancies Act, 2006 (RTA) protects a tenant through a sale, and it also gives a landlord some tools. This article walks through showings, notice and a buyer's own-use eviction, and then touches on the tax side for the landlord.

A sale does not end the tenancy

Covenants about a rental unit run with the land, so a buyer takes the property subject to the existing tenancy and its terms. The RTA applies despite any agreement or waiver to the contrary.

A landlord cannot end a tenancy just by announcing a sale. A notice to end the tenancy does not end it by itself. If the tenant stays, the landlord must apply to the Landlord and Tenant Board (LTB), and only the Sheriff can enforce an eviction order. A landlord cannot remove the tenant or change the locks.

Showings and entry during a sale

To let a potential buyer view the unit, the landlord, or a registered broker or salesperson the landlord has authorized in writing, may enter with at least 24 hours' written notice. Entry must be between 8 a.m. and 8 p.m., and the notice must state the reason, date and time.

Once the parties have agreed to end the tenancy, or a notice of termination has been given, the landlord may enter without written notice to show the unit to prospective tenants. Entry must still be between 8 a.m. and 8 p.m., after informing the tenant or making a reasonable effort to.

• Landlords: give written notice with the reason, date and time, and keep a copy.
• Landlords: authorize any agent in writing before they enter.
• Tenants: showings are for a potential buyer, so check that the notice gives the reason, date and time.
• Both: talking about a workable showing schedule often avoids disputes.

When a buyer wants the unit for their own use

A landlord of a residential complex with no more than three residential units, who has signed an agreement of purchase and sale, may give notice (form N12) for the buyer. The buyer must in good faith require the unit for their own residential occupation or that of their spouse, child or parent (or the spouse's), or a caregiver.

For a condominium unit that is a rental unit, these notices are available whatever the size of the building. But once a complex becomes subject to a registered condominium declaration and description, a landlord may not give this type of notice to a person who was a tenant at the time of registration.

The termination date must be at least 60 days after the notice is given and on the last day of a rental period, or the end of the term for a fixed-term lease. The selling landlord must pay the tenant one month's rent, or offer another acceptable unit. This stays the seller's obligation and does not pass to the buyer.

Two newer rules do not extend to purchaser's-use notices. The exception for no compensation on 120 days' notice applies to a landlord's own-use notice, not to a purchaser's-use notice. The presumption of bad faith if a person does not move in within 60 days also does not apply to purchaser's-use notices. Several LTB forms, including the N12, were replaced on September 21, 2026, and the earlier versions will not be accepted as of November 30, 2026.

If the tenant does not leave, the landlord still has to go through the LTB.

The landlord's tax on the sale

Selling a rental property for more than it cost may produce a capital gain, reported on Schedule 3, Capital Gains or Losses. For 2025, the inclusion rate is generally one-half, so only half of the gain is added to taxable income. The proposed increase to two-thirds was cancelled. Check the rules for the year of your sale.

• The adjusted cost base is usually the cost of the property plus the costs of buying it. The gain is the amount by which the proceeds exceed that figure plus the costs of selling.
• Legal fees paid on the sale are deducted from the proceeds, not claimed as a rental expense.
• If the capital cost allowance you claimed is more than the undepreciated balance left in the class, the excess is a recapture, added to income in full and not at the inclusion rate.
• A rental building cannot produce a capital loss, though a terminal loss may be deductible if no property is left in the class but undeducted allowance remains.

If you are a non-resident seller, you must notify the CRA no later than 10 days after the sale. An accountant can confirm how all of this applies to you.

What to do next

Landlords should talk to a lawyer before listing, especially if the buyer wants to move in. Tenants should keep their lease, rent records and every notice they receive. Do not move out only because a notice arrives, because it does not end the tenancy on its own. Get advice about your specific notice before you decide.

Frequently asked questions