Selling a House With a Tenant in Ontario: Your Legal Options

You own a rented house and you have decided to sell. The first questions are usually practical: does the tenant have to leave, can buyers walk through, and what do you owe the tenant if the buyer wants to move in?

Ontario's Residential Tenancies Act, 2006 answers some of these questions, but only within narrow limits. This article walks through the purchaser's-own-use notice, the compensation rule, the showing rules and the risks of getting it wrong.

Can a tenant be made to leave when you sell?

The main route the Residential Tenancies Act, 2006 gives you is a notice ending the tenancy on the buyer's behalf. A landlord who has agreed to sell a residential complex with no more than three residential units may give the tenant this notice on Form N12, but only where the purchaser in good faith requires the unit for residential occupation.

This means a buyer who plans to rent the home out to someone else, or who simply wants it vacant, does not fit this route. If your buyer is an investor, the practical choice is often to sell with the tenant in place. A lawyer can help you think through how that affects your price and your buyer pool.

Condominium units are a special case. The same notice can be used for a condominium unit when the landlord is an owner under the Condominium Act, 1998 and has agreed to sell the unit.

What an N12 notice must meet

Older versions of the updated Landlord and Tenant Board forms, including the N12, will not be accepted as of November 30, 2026, so always use the current version of the form.

Compensation and the risk of a bad-faith notice

The landlord who gives a purchaser's-own-use notice must pay the tenant compensation equal to one month's rent, or offer another rental unit acceptable to the tenant. This duty stays with the selling landlord and does not pass to the purchaser.

The Residential Tenancies Act amendments in force on September 21, 2026, including the 120-day-notice compensation change and the 60-day occupancy presumption, do not apply to N12 notices served for a purchaser's own use.

A notice given in bad faith can be costly. A former tenant may apply within one year of moving out. The Board may order up to 12 months' rent as general compensation, moving and storage costs, and an administrative fine up to the greater of $10,000 and the Small Claims Court limit. For that reason, it matters that your buyer's plan to live in the home is genuine and can be backed by a sworn statement.

Showing the home while it is rented

To show a rented unit to a potential purchaser, the landlord, or a broker or salesperson the landlord has authorized in writing, must give written notice at least 24 hours ahead. The notice must state the reason, the day, and an entry time between 8 a.m. and 8 p.m..

• Put the notice in writing every time; a text message or a call alone may not meet the rule.
• State that the reason is showing the unit to a potential purchaser.
• Name the day and a specific entry time inside the 8 a.m. to 8 p.m. window.
• If your agent will handle showings, authorize them in writing first.

Some municipalities have their own rental rules as well, so it is worth checking local bylaws where the property is located.

What to do next

• Find out whether your buyer truly intends to live in the home, and whether they are willing to sign the affidavit that may be needed later.
• Check how many units the property has and whether it is a condominium unit.
• Read the lease for its end date, because a fixed-term tenancy affects the termination date.
• Budget for one month's rent in compensation, or an alternative unit the tenant would accept.
• Make sure you are using the current N12 form.
• Speak with a real estate lawyer before you serve the notice or write the sale terms around it.

Frequently asked questions