Managing your rental
What happens to the tenancy when you sell an Ontario rental: showings on 24 hours' notice, when a buyer can move in with an N12, and the compensation owed.
By the Tenant.ca teamUpdated 3 min read
A sale does not end a tenancy. Section 18 of the Residential Tenancies Act says covenants concerning a rental unit run with the land, so the buyer takes the property with the tenant, the lease and the rent as they are, and becomes the landlord on closing.
This page is general information, not legal advice. It reflects the Residential Tenancies Act, the province's pages and the Landlord and Tenant Board's forms as checked on October 19, 2026. If a tenancy is already in dispute, speak to a lawyer or licensed paralegal.
Section 27 lets the landlord, or a registered real estate broker or salesperson with the landlord's written authorization, enter to show the unit to a potential purchaser on at least 24 hours' written notice. The notice must give the reason, the day and a time of entry between 8 a.m. and 8 p.m. A tenant who is kept informed and offered reasonable showing times is far more likely to keep the unit ready to show.
The seller can give notice on the buyer's behalf, within these limits:
A buyer who will rent the unit out cannot end the tenancy to get vacant possession, and neither can the seller: a sale is not one of the grounds the Act allows. If the tenant agrees to leave, the Board's Form N11 records the agreement, and whether to sign it is the tenant's choice.
A rent deposit is the only security deposit a landlord may collect (section 105), and it stays with the tenancy: the buyer takes on applying it, with its interest, to the last rental period. Agree with your lawyer how it is handled on closing. Give the buyer the lease, the rent record, the deposit and interest history and the tenant's contact details, and tell the tenant in writing who their new landlord is and where to pay.
For the owners we manage for, we coordinate showings with your tenant on proper notice, prepare an N12 on the buyer's behalf when the law allows it, and hand the tenancy file to the buyer or their manager on closing. Whether and how to sell is always your decision.
Management is $98 per month plus HST for a condo or apartment and $148 per month plus HST for a house, and the first 60 days of the agreement are a trial period.
