No, you can’t evict tenants just because you’re selling. Eviction is only legal if the buyer or their immediate family intends to move into the rental property.
When Eviction Is Allowed
- Personal use: The purchaser, their spouse, child, parent, or caregiver must genuinely intend to live in the property.
- End-user buyers: If the property is sold to an end user who plans to live in the unit (or their immediate family does), the tenant may be evicted with proper notice and compensation.
- Proper notice: Landlords must serve a Form N12 at least 60 days before the termination date, which is typically aligned with the end of a rental period or lease term.
- Compensation: Tenants are entitled to one month’s rent or another acceptable rental unit.
When Eviction Is Not Allowed
- Investor buyers: If the purchaser is buying as an investment, they must assume the existing tenancy.
- No valid grounds: Selling alone is not a legal reason to evict.
Why Compliance Matters
- LTB oversight: Improper notice or missing compensation can make the eviction invalid.
- Tenant rights: Tenants may challenge an N12 at the Landlord and Tenant Board if they believe it was issued in bad faith.
- Reputation: Following the law fosters smoother sales and protects landlords from costly disputes.
The Fox Marin Team helps landlord clients navigate the sale of tenant-occupied properties, ensuring compliance with Ontario’s Residential Tenancies Act and reducing risk for both sellers and buyers.
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