As life becomes increasingly expensive, many people will begin to seek quick methods to put money back in their pockets. For Landlords, this could mean selling a rental property.But before you put your home on the market, you’ll want to take a moment to familiarize yourself with your rights as a Landlord along with the rights of any current tenants you may have so as to save yourself any headaches - or lawsuits - later.
I’m a Landlord. Can I sell the home or condominium I’m currently renting to a tenant?
A landlord does have the right to sell a tenanted home at any time. However, unless you have a legal reason for evicting a tenant (ie. “for cause” reasons such as the tenant has not been paying rent, caused damage to the unit, is disturbing other tenants in the building, or there has been illegal activity taking place in the unit), you must wait until after the lease agreement is done to close the sale.
If you, as the landlord would like to close earlier, doing so can be subject to negotiations if the tenant is willing. Some options would be offering the tenant another suitable place to live, having the new owner take over the tenants as part of the agreement, or providing monetary compensation to the tenants.
The Exceptions
But like many rules and regulations, there are some exceptions, which are referred to as “no fault” reasons. They are the following:
- If the unit is being given to a family member, caregiver, or the landlord themselves, in which case they are required to provide the tenant written notice in the form of Form N12 - Notice to End Your Tenancy Because the Landlord, a Purchaser, or a Family Member Requires the Rental Unit
- If the unit is being demolished,
- If the unit needs to undergo extensive repair or renovation, or
- If the Purchaser requires the unit for themselves, their spouse, a child or parent, or a caregiver of any of the aforementioned people.
If another party has purchased the property and will be using it for the reasons mentioned in section d. above, the landlord would need to provide the tenant with Form N12 - Notice to Terminate the Tenancy at the End of the Term for Landlord’s or Purchaser’s Own Use. They would also need to provide a minimum of 60 days notice to the tenant, and if a fixed term agreement was in place, the termination date would need to be dated the last day of the rental period or lease term. The same applies if the landlord wishes to use the unit for themselves, family and/or a caregiver.
If a Landlord issues an N12 form to their tenant, they are required to provide the equivalent of one month’s rent or provide them with a suitable place to live even if the eviction notice is dated to be at the end of the fixed term agreement.
Additionally, this responsibility remains with the current Landlord even if sold to a Purchaser. If the Landlord and Tenant Board discovers the Landlord has not fulfilled this obligation, they will not issue an eviction notice to end of the tenancy.
If the property is undergoing extensive repairs or renovations that require an empty unit, the tenant would need to be given 120 days notice with the termination date on the last day of the rental period or lease term if a fixed term agreement was in place.
What About Showings?
As a Landlord, you are required to provide your tenant(s) with 24 hours notice for all showings. Tenants also have the right to stay in the unit during the showings if they so choose.
Regardless of your reason for selling a tenanted home, it is always best practice to work together amicably on a solution whenever possible.
Have any further questions? Reach out any time!