Estimated reading time: 5 minutes

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 an eligible immediate family member such as a spouse, child, parent, or parent of a 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 eligible family member must actually move in. If they do not, or if the unit is re-rented within 12 months, you may have grounds to raise a bad-faith application .

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 require you to leave before that date through an N12, 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 simply expire because the fixed term has ended.

The sale of the property does not change this.

You can also read our guide to ending your tenancy in Ontario for more information about how a tenancy can legally come to an end.

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, it may be worth speaking to tenant duty counsel or another legal resource about your situation.

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 generally give 24 hours' written notice and follow Ontario's entry rules.
  • You are not required to vacate the unit for showings, although many tenants accommodate them reasonably.
  • Get any agreement involving rent, move-out dates, compensation, or other tenancy conditions in writing before acting on it.

Frequently Asked Questions

What happens to my lease if my landlord sells the property?

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.

Can I be evicted just because my landlord is selling the property?

No. A landlord cannot evict you simply because they are selling the property. A sale does not automatically end your tenancy.

Does the new owner have to honour my lease?

Yes. The new owner must follow the existing lease terms, whether you are in a fixed-term lease or a month-to-month tenancy.

Can the buyer move into the rental unit?

Yes, but only through the proper legal process. If the buyer or an eligible immediate family member genuinely intends to live in the unit, an N12 notice may be used.

How much notice do I get if the buyer wants to move in?

An N12 notice must give at least 60 days' notice, and the termination date must comply with the applicable tenancy rules and cannot be earlier than the end of a fixed-term lease.

Can my landlord show the unit while it is listed for sale?

Yes. A landlord can enter to show the property to prospective purchasers when the requirements under Ontario's Residential Tenancies Act are followed. This generally includes at least 24 hours' written notice and entry between the permitted hours.

Disclaimer: This article provides general information about Ontario residential tenancies and is not legal advice. Individual circumstances can affect how the law applies. For advice about a specific situation, contact a community legal clinic, licensed paralegal, lawyer, or tenant duty counsel.