Owning or leasing a home or apartment isn’t simple anymore. Not that it ever was perfectly straightforward, but changing rules and guidelines have made everything seem more complicated.
If you’re the tenant, there is some good news. The laws already mostly favoured you, and any new legislation tends to benefit you further. If you’re the landlord, these rules can be harder to navigate.
No matter what side of the landlord/tenant divide you fall under, things can get quite stressful when the house is listed for sale. If this happens, both parties might start frantically Googling, “landlord selling house what are my rights?”
In this post, we’ll explore the rights and responsibilities of both the landlord and the tenant during the sale of the property.
Do you want to simplify the home selling process? Check out one of our comprehensive guides for sellers.
Help! My Landlord Is Selling the House (Ontario)
At the first hint of a possible transaction, your first panicked thought may be, “if my landlord sells the house, do I have to move?” It’s a stressful situation if you like where you are and are all settled. The answer depends on the new buyer and the type of lease you have. The bottom line is that you might have to move eventually, but not any time soon.
Let’s consider a few of the scenarios that might play out:
The new owner wants to occupy the property. You should start looking for a new solution, but you may not need to pack just yet. The terms of your lease carry through even after ownership changes hands. If you’re on the first month or two of a one-year lease, the new buyer will have to wait.
If you are on a month-to-month lease, the owner will fill out an N12 form and give you sufficient notice to allow you time to find a new place.
Either of these situations may seem far from ideal, but there is another likely scenario. Many people who are buying a tenant-occupied property are investors, and they don’t necessarily want the home for themselves. In this case, they are more than likely happy to keep you on as a tenant, especially if you have taken good care of the property and have diligently paid your rent on time.
Planning to sell a house in Guelph or the Tri-Cities? First, read the posts below:
- When Is The Best Time To Sell A House?
- What Are the Best Ways to Increase Your Home’s Value?
- What Can You Do if a Buyer Tries to Back Out?
Can a Landlord Break a Lease in Ontario?
When can a landlord evict a tenant in Ontario? This question comes up often, not just when a landlord decides to sell the property. Under the Residential Tenancy Act (RTA), a landlord can only break a lease with a valid reason. These include:
The homeowner or an immediate family member wants to move into the property.
The home needs substantial renovations and needs to be vacant. In this situation, the tenant would have first right of refusal when the upgrades are completed.
If the tenant breaks the terms of the lease (fails to pay the agreed-upon rent, disrupts the peace, or damages the property), the landlord can appeal to the Landlord and Tenant Board (LTB) to begin the eviction process.
Even with a month-to-month lease, a landlord cannot simply evict the tenant without just cause. According to the RTA, tenants have the right to tenancy. Even when the landlord has a valid reason, they must still provide ample notice for the tenant to vacate. There may also be compensation for tenants when the landlord sells property.
The best way to sell your house, tenants or no tenants, is to work with an expert. Here’s How An Experienced Guelph Real Estate Team Can Help With Your Investments.
Can You Sell a House With Tenants in It?
As a landlord, selling a rental property in Ontario is your right. Nevertheless, you will need to know and honour all of your responsibilities toward your tenant. Here are some of the most common questions a homeowner has about selling a house with tenants.
How much notice to give a tenant when selling the house?
This is as much about the right thing to do as it is about legalities and logistics. By law, you must give them at least 60 days’ notice if you intend to end their tenancy for any valid reason. Your tenant’s life is about to be uprooted, and the more time they have to plan, the less stressful (and more amicable) the transition will be.
This is a balancing act, however. Providing minimal notice can lead to resentment, and your tenant’s cooperation can make it easier to sell the home.
If you provide too much notice, they might find a new place quickly and leave your unit vacant longer than you anticipated. The amount of notice you provide above and beyond the legal requirement will ultimately depend on the relationship you have with your tenant.
Successful investing takes a significant amount of knowledge and expertise. You’ll gain valuable insight from the posts below:
- A Complete Guide to Real Estate Investing in Guelph
- The Go Wylde Guide to House Flipping
- Five Best Cities in Ontario to Buy Recession-Proof Investment Properties
How can I show a tenanted home?
When showing the property to a prospective buyer, you must let your tenant know 24 hours ahead of time that you intend to enter the unit. The tenant is also under no obligation to prepare or stage the home beyond maintaining a reasonable standard of cleanliness.
Your tenant has the option to be present or absent during showings. However, they cannot restrict showings based on their preferences. Appointments are permitted between 8:00 a.m. and 8:00 p.m.
What is an N11 form in Ontario?
A landlord cannot force the tenant to leave a property without a valid reason. However, sometimes they can reach an agreement that is in the best interest of both parties. When that happens, both will sign an N11 form, which is essentially a mutual release.
What is an N12 form?
When a landlord ends a tenancy because they or an immediate family member wishes to move in, they will provide the tenant with an N12 form. When selling a rental property, the new owner can provide the form as long as they provide sufficient notice. The existing owner can also provide the form on behalf of the buyer once the Agreement of Purchase and Sale is firm.
When this happens, the landlord must cover one month’s rent in compensation. The landlord can also not lie or act in bad faith. They must actually intend to occupy the property for at least 12 months.
Selling a house under any circumstances isn’t always easy. A tenant in the mix can create even more challenges. For the best results, consider working with a real estate team with extensive experience in every market and every scenario.
Do you have more questions about listing a home with tenants? Our top Guelph real estate agents often work with investors in the area and are happy to help. Reach out today at info@gowylde.ca or call 519-826-7109 for more information.
