Video: Selling a Tenanted Property | yael + co. real estate

Selling a Tenanted Property in Toronto: What Every Landlord Needs to Know

Thinking about selling a tenanted property in Toronto? Whether you’re an investor looking to cash out or a homeowner with tenants, navigating this process requires careful planning to comply with Ontario’s landlord-tenant laws. Selling a house with tenants in place comes with unique challenges, but understanding your legal obligations under the Residential Tenancies Act Ontario can help ensure a smooth transaction.

Can You Sell a House with Tenants in Ontario?

Yes, you can sell a tenanted property in Ontario. However, tenants’ rights are strongly protected, and their lease does not automatically terminate just because the property is being sold. If a tenant has a fixed-term lease, they have the legal right to stay until the lease expires. If they are on a month-to-month lease, the buyer can either assume the tenant or provide proper notice for vacancy.

Do you have more questions about selling real estate in Ontario? Here are a few videos to check out next:

Landlord Selling House: Tenants’ Rights in Ontario

If the new buyer wants to move into the property, you, as the landlord, must serve the tenant with an N12 notice, which requires at least 60 days’ notice before the end of a rental period. However, this notice is only valid if the buyer or their immediate family intends to occupy the unit. You cannot evict a tenant simply because you want to sell the home more easily or because the buyer prefers to find their own tenants.

Key considerations for selling a house with tenants in Ontario:

Tenants cannot be forced to leave unless they voluntarily agree or a proper legal notice is served.
If a tenant refuses to vacate, you may need to go through the Landlord and Tenant Board (LTB) for a formal eviction, which can take months.
Showings require 24-hour written notice before potential buyers can enter the property.

How to Sell a Tenanted Property Smoothly

Selling a home with tenants in place can be more complicated than selling a vacant property. Here are some tips to make the process easier:

Provide Proper Notice for Showings – Ontario law requires that landlords give at least 24 hours’ written notice before showing the property to potential buyers.
Work with Your Tenant – A cooperative tenant can help keep the home clean and presentable. Some landlords offer a small incentive to encourage their cooperation.
Market to Investor Buyers – Some buyers are looking for rental income, so positioning your property as a turn-key investment can attract more interest.

Considering a “Cash for Keys” Agreement?

If you prefer to sell the home vacant, you may want to negotiate a Cash for Keys agreement. This is a voluntary arrangement where the tenant agrees to move out in exchange for a financial incentive. The key here is to have the tenant sign a mutual release to end the tenancy legally before listing the property.

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Final Thoughts: Landlord Rights & Tenants’ Rights When Selling a House in Ontario

Selling a house with tenants in Ontario requires landlords to carefully follow the Residential Tenancies Act to avoid legal issues. Whether you sell with the tenant in place or negotiate a move-out, planning ahead is key to a smooth sale.

If you’re navigating this process, working with an experienced real estate agent can make all the difference. They can guide you through legal requirements, help communicate with tenants, and ensure a successful transaction.

Have questions about selling a tenanted property in Toronto? Contact a local real estate expert today to discuss your options! Get in touch with us by filling out the form on this page, calling 416-909-9235, or emailing info@yaelandco.com.