Selling a House With Tenants in Ontario: 2026 Seller Rules

Yes, you can sell. Selling a house with tenants in Ontario is legal, and plenty of owners do it. But the sale doesn't end the lease. Your tenant stays unless the buyer, or their family, is moving in, and even then there are rules on notice and money.

One detail most sellers miss: September's new "no compensation" rule doesn't cover a sale.

Do tenants have to leave when a house is sold in Ontario?

No. Ontario tenants have what the Landlord and Tenant Board calls security of tenancy. A sale on its own isn't a reason to end it.

If your buyer is an investor, the lease carries over to them.

If your buyer wants to live there, they can ask you to give the tenant notice, but only in a building with no more than three residential units, and only after you've signed an agreement of purchase and sale. The person moving in has to be the buyer, a member of their immediate family, or someone providing care to them.

How much notice and compensation does a purchaser N12 need?

This is the Form N12.

• Notice: the termination date has to be at least 60 days after the tenant gets the notice.
• End date: it must fall on the last day of a rental period, or the last day of a fixed-term lease.
• Money: you pay the tenant one month's rent, or offer them another acceptable unit.

Since September 21, a landlord who gives 120 days' notice for their own use no longer owes that month's rent. But the Landlord and Tenant Board says plainly that this change does not apply to N12 notices served for a purchaser's own use. Selling to a buyer who's moving in? Budget for the month's rent.

Can I show my house while tenants live there?

Yes. Under the LTB's guideline on a landlord's right of entry, you need to give written notice at least 24 hours ahead, and showings must happen between 8 a.m. and 8 p.m. The notice has to state the reason, the date and the time. Your listing agent can enter too, but only with your written authorization.

A tenant who feels ambushed by back-to-back showings can make your home look tired fast. Talk to them early and give them a schedule.

Vacant or tenanted: which sells better?

It depends on your buyer. An investor may like a good tenant at a fair rent. A family needs to know when the unit will be empty. Your options:

1. Sell tenanted to an investor. Simplest, but fewer buyers.
2. Purchaser N12 after you have a firm deal. Your closing date has to line up with the notice.
3. A mutual agreement to end the tenancy (Form N11), often with a payment to the tenant. The LTB is clear that a landlord can't force a tenant to sign one. I wrote about how cash for keys deals work if you want the details.

I've been investing in real estate since 2008, and the sellers who get burned list first and think about the tenant later. Sort out the tenant plan before your sign goes up. It's on my list of mistakes to avoid when selling your home.

Frequently asked questions

Can my buyer move into the basement apartment?

Yes, if the property has no more than three residential units and the buyer, their immediate family or their caregiver will live there. You serve the N12 after the agreement of purchase and sale is signed. The 60-day notice and one month's rent still apply, so build both into your closing timeline.

Does the 120-day rule mean I don't have to pay my tenant?

Not when you're selling to someone who will move in. The 120-day no-compensation option only covers a landlord's own use, meaning you or your family moving in. For a purchaser N12, you still pay one month's rent or offer another acceptable unit, no later than the termination date.

What if my tenant won't agree to leave?

A tenant doesn't have to sign an N11. If the sale qualifies for a purchaser N12 and the tenant doesn't move by the termination date, you apply to the Landlord and Tenant Board. That takes time, so many sellers either sell tenanted or negotiate a fair agreement first.

Next step

Book a call with me and we'll map out your timeline, or see what your home is worth first.