Tenant’s Rights When Landlord Sells Property in Ontario, Canada

When a landlord decides to sell their property, it can create a sense of uncertainty for tenants. However, tenants in Ontario, Canada, have specific rights under the Residential Tenancies Act, 2006, which provides protection in such situations. This article will explore the rights of tenants when their landlord sells the property and answer some common questions on the topic.

Notice of Sale

Under the Residential Tenancies Act, a landlord is not legally required to inform their tenants if they are planning to sell the property. However, if the landlord or a potential buyer wants to inspect the property, they must provide the tenant with at least 24 hours written notice.

Right to Stay in the Property

When a property is sold, the new owner takes over the existing lease agreements. This means that if you have a lease, you have the right to stay in the property until the end of your lease term. The new owner must respect the terms of the existing lease, including the rent amount and the lease end date.

Eviction

There are only a few specific circumstances under which a new owner can evict a tenant. These include if the new owner, or a close family member, plans to live in the property, or if major renovations are planned that require the property to be vacant. In these cases, the landlord must provide the tenant with at least 60 days’ notice and one month’s rent in compensation.

FAQs

What if I have a month-to-month lease?

If you have a month-to-month lease, the new owner can end your tenancy with 60 days’ notice, provided they or a close family member intend to live in the property, or if major renovations are planned.

Can the new owner increase my rent?

The new owner must respect the terms of the existing lease, including the rent amount. They can only increase the rent after the lease term ends, and even then, they must follow the guidelines set by the Ontario government, which limit how much the rent can be increased each year.

What if the new owner wants to use the property for a different purpose?

If the new owner wants to use the property for a purpose other than residential (for example, to run a business), they must apply to the Landlord and Tenant Board for permission to end the tenancy. The Board will consider factors such as the economic impact on the tenant and the landlord’s reasons for the change.

In conclusion, while the sale of a property can be a stressful time for tenants, it’s important to remember that you have rights. If you believe your rights are being violated, you can contact the Landlord and Tenant Board for assistance.