Estimated reading time: 5 minutes
Short answer: your lease survives the sale.
If you’re renting in Ontario and your landlord tells you they’re selling the property, or you find out through other means, the first thing to know is this: a sale does not end your tenancy. Your lease doesn’t disappear when ownership changes hands.
Ontario’s Residential Tenancies Act (RTA) is clear on this point. The new owner steps into the seller’s shoes and takes on all the obligations of the existing lease. They cannot simply ask you to leave because they’ve purchased the property.
That said, there are situations where a sale can eventually lead to a notice to vacate, and it’s important to understand exactly when that’s legal, what process must be followed, and what your rights are throughout.
Does the New Owner Have to Honour My Lease?
Yes. Unconditionally.
Whether you have a fixed-term lease (a specific start and end date) or a month-to-month tenancy, the terms carry over automatically to the new owner. The new owner is bound by the same rent, the same lease conditions, and the same notice requirements as the previous owner.
There is no legal mechanism in Ontario that allows a new purchaser to void an existing lease simply because they’ve bought the property.
Can the New Owner Ask Me to Move Out?
There is one scenario where a new owner can legally ask you to vacate: if they, or an immediate family member, intend to move into the unit and use it as their primary residence. This is called an N12 notice.
The N12 Notice, What It Requires
- The new owner (or their immediate family member: spouse, child, parent, or parent of spouse) must genuinely intend to occupy the unit
- The notice must give you at least 60 days and expire on the last day of a rental period
- You are entitled to compensation equal to one month’s rent
- The owner or family member must actually move in, if they don’t, or if they re-rent the unit within 12 months, you may have a case for bad faith
“Receiving an N12 is not the end of the road. You have the right to dispute it at the Landlord and Tenant Board (LTB) if you believe the notice is being served in bad faith.”
What If I’m on a Fixed-Term Lease?
An N12 can only be served to expire on or after the end of your fixed-term lease. If you have a lease running until December 31, 2026, a new owner cannot serve you notice to leave before that date, even if they intend to move in themselves.
Once a fixed-term lease ends in Ontario, it automatically converts to a month-to-month tenancy under the same terms. It does not expire. The sale of the property does not change this.
You might also like: Ending Your Tenancy in Ontario
What About “Cash for Keys”?
You may be offered money to leave voluntarily, often called ‘cash for keys.’ This is not a legal requirement, and you are under no obligation to accept it. Some tenants find it beneficial if the compensation offered is significant and their housing situation allows flexibility. Others choose to stay.
No one can force you to accept a cash-for-keys offer. If you feel pressured or threatened, that is worth speaking to a tenant duty counsel about, many offer free legal advice in Ontario.
What Should I Do When the Property Is Listed for Sale?
- Keep a copy of your lease in an accessible place
- Note the date any notice is formally served to you in writing
- If prospective buyers want to view the unit, your landlord must give 24 hours’ written notice and can only show the unit at reasonable times
- You are not required to vacate for showings, though most tenants accommodate them reasonably
- Get any agreement with the new owner, on rent, conditions, timelines, in writing before you act on it
Resources
Landlord and Tenant Board (LTB): tribunalsontario.ca/ltb
“A sale is stressful. But your rights as a tenant in Ontario are strong, and they don’t disappear with a change of ownership.”
FAQ
Your lease continues after the sale. The new owner takes over the existing tenancy and must honour the same rent, lease terms, and tenant rights.
No. A landlord cannot evict you simply because they are selling the property. A sale does not automatically end your tenancy.
Yes. The new owner must follow the existing lease terms, whether you are in a fixed-term lease or a month-to-month tenancy.
Yes, but only through the proper legal process. If the buyer or an eligible immediate family member genuinely intends to live in the unit, they may serve an N12 notice.
An N12 notice must give at least 60 days’ notice and the termination date must fall on the last day of a rental period or after the end of your fixed-term lease.
Yes, but your landlord must usually give at least 24 hours’ written notice before entering the rental unit, and showings must happen at reasonable times.
