Does selling the property end your tenancy? No. Covenants concerning a rental unit “run with the land” (s.18), and the Act’s definition of landlord expressly includes “the heirs, assigns, personal representatives and successors in title” of the owner. The buyer simply becomes your landlord on the same lease, at the same rent.
You must allow showings on 24 hours’ written notice specifying a reason, a day and a time between 8 a.m. and 8 p.m. You do not have to leave, tidy, or make the place look nice.
A buyer can only end your tenancy with an N12, and only in a complex of three units or fewer, or in a condominium unit. It needs 60 days’ notice ending on the last day of a rental period, and the landlord must pay you one month’s rent in compensation by that date — or offer you another unit you find acceptable.
Does my landlord selling the house end my lease?
No. There is no provision in the Act that terminates a tenancy on a sale, and two provisions confirm the opposite.
Section 18: “Covenants concerning things related to a rental unit or the residential complex in which it is located run with the land, whether or not the things are in existence at the time the covenants are made.”
And the definition of “landlord” in s.2(1) includes, at paragraph (b), “the heirs, assigns, personal representatives and successors in title” of the owner. A purchaser is a successor in title. On closing, they inherit your lease, your rent, your last month’s rent deposit and every obligation the previous owner had.
The strongest structural proof is section 49 itself. If a sale ended tenancies, there would be no need for a section allowing a landlord to serve notice on a purchaser’s behalf. The section exists precisely because it does not.
What do I have to allow during the sale?
Showings, on proper notice. That is essentially it.
Section 27(2) lets the landlord — or a broker or salesperson registered under the Trust in Real Estate Services Act, 2002, with the landlord’s written authorisation — enter to let a potential purchaser view the unit, on at least 24 hours’ written notice. Section 27(3) requires that notice to state the reason, the day, and a time of entry between 8 a.m. and 8 p.m. A range is not a time.
| You must | You do not have to |
|---|---|
| Allow entry that complies with s.27 | Be home, or leave, during a showing |
| Not obstruct the landlord or their agent | Clean, stage, declutter or depersonalise |
| Keep paying rent as normal | Accept a lockbox, or hand over keys beyond the lease |
| Allow reasonable access to rooms where work is to occur | Allow marketing photographs, absent a lease term or your consent |
| — | Sign anything, including an N11 |
On that last row in the right column: in Juhasz v Hymas, 2016 ONSC 1650, the Divisional Court found — in the Board’s own summary in Guideline 6 — that absent a specific term of the lease or the tenant’s consent, s.27 does not authorise entry to take photographs for marketing purposes to advance a sale. I cover the entry rules in detail in the entry and showings guide.
The N12: when a buyer can actually end your tenancy
Section 49 is narrow. Every element has to be there.
| Requirement | Section |
|---|---|
| The complex contains no more than three residential units — or the unit is a condominium unit, in which case there is no unit cap | s.49(1), s.49(2) |
| The landlord has entered into an agreement of purchase and sale | s.49(1) |
| The purchaser in good faith requires possession for residential occupation | s.49(1) |
| The occupant is the purchaser, the purchaser’s spouse, a child or parent of either, or a person providing care services to one of them who resides in the building | s.49(1)(a)–(d) |
| Termination date at least 60 days after the notice is given, and the last day of a rental period — or the end of a fixed term | s.49(3) |
| Compensation of one month’s rent, or another rental unit acceptable to the tenant | s.49.1(1) |
| Compensation paid no later than the termination date in the notice | s.55.1 |
| An affidavit from the person who requires the unit, filed with the Board | s.72(1)(b) |
Two points that trip people up. The 60 days is a floor, and the date must also land on the last day of a rental period — for a month-to-month tenancy, the end of a month. And the compensation is owed by the landlord who served the notice, not the purchaser: s.49.1(2) says so expressly, “despite section 18.” If you are selling, that money comes out of your side of the closing, not the buyer’s.
The 12-month rule does not apply to a purchaser’s N12
This is the most commonly repeated error about N12s, and it matters in both directions.
Section 48, the landlord’s own use notice, requires the landlord to require the unit “for the purpose of residential occupation for a period of at least one year.” Section 49, the purchaser’s own use notice, contains no such words. Nor does the s.72(1)(b) affidavit for a purchaser, which certifies only that the person “in good faith requires the rental unit for his or her own personal use.” Form N12 mirrors it: Reason 1 says “for at least one year,” Reason 2 does not.
So the test for a purchaser N12 is good faith plus occupation within a reasonable time, not a one-year residency requirement. Anyone telling a tenant “they have to live there a year or you get compensation” is describing s.48, not s.49.
The same asymmetry runs through the bad-faith presumption. Section 57(5) — where advertising the unit for rent, re-letting it, listing it for sale, demolishing or converting it within a year raises a presumption of bad faith — applies only to applications about s.48 notices. There is no equivalent presumption for a purchaser N12. A tenant challenging a s.49 notice has to prove bad faith rather than presume it.
What “good faith” actually means at a hearing
The Board’s Interpretation Guideline 12 sets the test: the landlord must prove, on a balance of probabilities, that the person genuinely intends to move in within a reasonable time. “Whether the landlord’s plan is reasonable is not the test.”
Guideline 12 adds two things specific to purchaser notices that a tenant should know:
- “The LTB may refuse an application if it is not reasonably certain that a completed sale will result from the agreement.” A conditional deal that may never firm up is not a foundation for eviction.
- “The LTB may also dismiss the application if satisfied the purchase is a pretence created for the purpose of evicting the tenant.” Section 202 directs the Board to look at “the real nature of any transactions.”
And under s.72(3), in assessing good faith the Board may consider evidence of the landlord’s or purchaser’s previous use of notices under s.48, s.49 or s.50 — in respect of the same unit or a different one. A pattern is admissible.
What if the notice was in bad faith?
You apply on a T5. Section 57(1)(b) covers the purchaser limb: the landlord gave a s.49 notice in bad faith, you vacated as a result, and no person named in s.49(1) or 49(2) occupied the unit within a reasonable time after you left.
There is a hard deadline in s.57(2): no application more than one year after you vacated. Diarise it the day you move out.
What the Board can order under s.57(3):
| Remedy | Cap |
|---|---|
| Your increased rent for a one-year period after vacating | Actual increase incurred |
| General compensation, whether or not you incurred any actual expense | Up to 12 months of your last rent |
| Reasonable out-of-pocket moving and storage costs | Actual |
| Abatement of rent | Board’s discretion |
| Administrative fine payable to the Board | The greater of $10,000 and the Small Claims Court’s monetary jurisdiction — $50,000 since 1 October 2025 |
Both the landlord and the purchaser can be on the hook. The Board’s own T5 instructions say it: “The LTB can decide that the landlord, the purchaser or both acted in bad faith and must pay you money.”
Can I leave early if I get an N12?
Yes, and it does not cost you the compensation. Section 49(4) lets a tenant who receives the notice terminate the tenancy on an earlier date, and s.49(5) requires that date to be at least 10 days after the tenant’s notice is given. Form N12 directs you to use Form N9 to do it.
The compensation under s.49.1(1) is triggered by the giving of the notice, not by staying to the termination date. Leaving early does not forfeit it.
If you would rather move on your own terms
Two routes exist, and both are yours to choose, not the landlord’s to impose.
Assignment (s.95). With the landlord’s consent, you may assign the unit to someone else, who steps into your tenancy. You can make a general request, or name a specific person. If you make a general request and the landlord refuses or does not respond within seven days, you can end the tenancy on 30 days’ notice.
An N11, if the price is right. A landlord who wants vacant possession can offer you money to sign an agreement to end the tenancy. You are under no obligation to sign, there is no statutory amount, and the moment you sign you give up the s.49.1 compensation and every protection an N12 would have carried. I have written about that trade-off in the N11 and cash-for-keys guide.
Selling with a tenant, or buying one?
Send me the address, the lease end date and the notice history and I will tell you what it does to price, timeline and your realistic options — including whether the tenant is an asset rather than a problem. If you are the buyer, I will tell you before you sign whether possession is actually achievable. No pitch, no obligation.
connect@jatindua.com · 437-987-1925 · Book a free consultation
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Frequently asked questions
Does my landlord selling the house end my lease in Ontario?
No. Section 18 of the Residential Tenancies Act says covenants concerning a rental unit run with the land, and the definition of landlord in section 2(1) includes the successors in title of the owner. The buyer becomes your landlord on the same lease at the same rent.
Do I have to allow showings if my landlord is selling in Ontario?
Yes, on at least 24 hours written notice under section 27(2), stating the reason, the day and a time of entry between 8 a.m. and 8 p.m. You do not have to be home, and you do not have to clean or stage the unit.
Can my landlord evict me to sell the house in Ontario?
Not for the sale itself. A tenancy can only be ended on an N12 where the purchaser in good faith requires the unit for residential occupation by themselves, their spouse, a child or parent of either, or a care provider, and only where the complex has three units or fewer or the unit is a condominium. It needs 60 days notice ending on the last day of a rental period and one month’s rent in compensation.
How much notice does an N12 require in Ontario?
At least 60 days, and the termination date must also be the last day of a rental period, or the end of the term if the tenancy is for a fixed term. Section 49(3).
How much compensation do I get for an N12 in Ontario?
One month’s rent, or another rental unit acceptable to you, under section 49.1(1). It must be paid no later than the termination date in the notice under section 55.1. The obligation falls on the landlord who served the notice, not on the purchaser.
Does the purchaser have to live in the unit for a year after an N12?
No. The one-year occupancy requirement is in section 48, which covers a landlord’s own use. Section 49, the purchaser’s own use, contains no such requirement, and neither does the affidavit or Form N12 for a purchaser. The test is good faith plus occupation within a reasonable time.
What can I do if the N12 was in bad faith?
File a T5 with the Landlord and Tenant Board within one year of vacating. Under section 57(3) the Board can order your increased rent for a year, general compensation of up to 12 months of your last rent whether or not you incurred an expense, moving and storage costs, an abatement of rent, and an administrative fine of up to $50,000.
Can I move out early after receiving an N12?
Yes. Section 49(4) lets you terminate on an earlier date, and section 49(5) requires at least 10 days notice, given on Form N9. Leaving early does not forfeit the one month’s compensation, which is triggered by the giving of the notice rather than by staying to the termination date.
Sources
- Residential Tenancies Act, 2006, S.O. 2006, c. 17 (e-Laws). Sections 2(1), 18, 27, 48, 49, 49.1, 51, 55.1, 57, 72, 95, 135(1.1), 202 and 234. Consolidation current from 1 July 2026; accessed 10 August 2026.
- LTB Interpretation Guideline 12 — Eviction for Personal Use. The good-faith test, the treatment of conditional sales and pretence purchases, and the rule that the Board will not order eviction until compensation is paid.
- LTB Form N12 — Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit. The 60-day and last-day-of-period rules and the compensation box.
- LTB Form T5 instructions. Confirms the Board can find the landlord, the purchaser or both acted in bad faith.
- O. Reg. 626/00 — Small Claims Court Jurisdiction and Appeal Limit. The $50,000 limit that sets the administrative fine ceiling, in force 1 October 2025.
- Tribunals Ontario — LTB Operational Update, 30 June 2026. Increased offence fines, and confirmation they do not apply to administrative fines.
Related reading
- Can my landlord enter or show my unit? The Ontario entry rules
- The N12 notice for landlord’s or purchaser’s own use
- Buying an Etobicoke condo with a tenant in place
- The Ontario LTB forms guide — which form does what
- What it costs to sell a house in Ontario in 2026
About the author — Jatin Dua, Etobicoke real estate agent
I am Jatin Dua, a Realtor with RE/MAX Quantum Realty, working out of 799 The Queensway in Etobicoke. Tenanted listings are a large part of what I do here, and the two calls I get most are from sellers who have priced on vacant possession they never had, and tenants who have been told the sale ends their lease. Neither is true, and both are fixable earlier than people think.
Reach me at connect@jatindua.com or 437-987-1925.