I would like to purchase a property, but I am becoming aware that tenants already live there. Is it true that the current tenants have a right to stay, even after I purchase the property?
The first thing to determine is whether or not the existing tenancies are covered under the Residential Tenancies Act. Generally speaking, if the tenants only have to share a kitchen or bathroom with one another, or if they have their own kitchen and bathroom, then they are considered to be tenants and are protected by the rules of that Act (which includes privacy rights and strict rules for ending a tenancy).
Whereas if they are presently required to share a kitchen or bathroom with the present owner, (or their child, spouse or parent) and that person lives in the property as their primary residence, then they would not be tenants and not protected by the Act.
If they are covered by the Act, then as a new landlord, you would only be able to serve 60 days’ (N12) notice for Landlord’s Own Use on the month to month tenant, and wait until 60 days before the end of the lease term if you want to move into the space currently occupied by the tenant.
If they are not covered by the Act because of a current shared living arrangement, then this would give you more flexibility in terminating, but since there is a lease (contract) in place with one of them, it would be better for the current owner to deal with ending the lease through some sort of incentive.
The rules regarding entering the rental property for the purpose of showing the unit to prospective buyers is to provide a 24 hours written notice stating the reason for entry, the day of entry and a time of entry between the hours of 8:00 a.m. and 8:00 p.m. You must also provide your real estate agent with written authorization to show the property. As long as proper notice has been given the tenant does not have the right to refuse entry.
What notice must a landlord provide to the tenant when the landlord intends to show the unit to a prospective buyer?
The landlord must give 24-hour written notice of entry to the tenant. The notice of entry may be delivered by: handing it to the tenant or an apparently adult person on the tenant’s premises; placing it in the tenant’s mail box; placing it where mail is ordinarily deliver; sliding it under the tenant’s door; sending it by facsimile to the residence or place of business; sending it by courier or mail with additional time added or posting it on the tenant’s door.(Note: Only the notice of entry may be posted on the door. Any other document that must be served on a tenant can not be delivered in this manner.)
If the purchaser does not intend to occupy the premises himself or require the premises for the occupation of his spouse, child or parent of one of them, then the purchaser does not have a valid reason for termination and the tenancy would continue under the same terms and conditions as originally established by the landlord/vendor.
The Residential Tenancies Act requires the tenant be provided with written notice at least 24 hours before the time of entry. The notice must specify the reason for entry, the day of entry and the time of entry between the hours of 8:00 a.m. and 8:00 p.m. The Residential Tenancies Act, section 27(2), provides that the landlord is not required to be present during the showing as long as a) the showing is conducted by a broker or salesperson registered under the Real Estate and Business Brokers Act, 2002 and b) the landlord has provided written authorization for the broker or salesperson to show the rental unit.
The landlord has the right to enter the rented premises to allow a potential mortgagee or insurer of the property to view the rental unit. The notice provisions for entering the tenant’s rental unit for this reason are 24-hour written notice that specifies the reason for entry, the day of entry and a time of entry between the hours of 8 a.m. and 8 p.m.
Once a notice for the purchaser’s own use has been issued, the tenant may give a notice that they will vacate early. The Residential Tenancies Act requires the tenant give at least 10 days notice which may be given at any time after receiving the landlord’s notice.
Planning to sell the house is not a valid reason to serve the tenants a notice to leave. You can only serve them a notice of termination once you have signed an Agreement of Purchase and Sale and the purchaser plans to move in to the house. At that point you would serve the tenants with a Form N12 giving them 60 days to vacate and the notice has to terminate on the last day of the rental period.
According to the Residential Tenancies Act, the landlord is not required to be present during showings to prospective purchasers PROVIDED the landlord has given written authorization to a broker or salesperson registered under the Real Estate and Business Brokers Act, 2002, AND written notice has been given to the tenant at least 24 hours before the time of entry to allow a prospective purchaser to view the premises.
Can we give notice BEFORE we put house up for sale? There’s no lease and repairs are needed before taking pictures and putting it on the market.
If your plan is to sell the house there isn’t a notice you can serve the tenants now before putting the house on the market, you can only give them notice to leave once you have an offer on the house and the purchaser is planning to live there. The only thing you can try is asking them if they would be willing to move out so that you can do the repairs in order to sell. If they agree to move out then you should have them sign an agreement to terminate the tenancy, this should be done on a proper form which is a Form N11. You can obtain this form from the Landlord and Tenant Board’s website at www.sjto.gov.on.ca/ltb/forms/.
If you plan on selling the property you would just inform the tenants that you are going to sell but there isn’t a notice that you can serve the tenants to vacate for this reason until the property is actualy sold. Once you have signed an Agreement of Purchase and Sale and the the buyer plans to move in to the property, provided the property contains less than three units you could then serve notice to the tenants to leave for the purchaser to move in. In this case a Form N12 has to be given to the tenants and it would be a 60 days notice.
My tenants are on a week to week lease, and I want to evict to sell the property, what form is used?
There is no notice of termination you can serve a tenant based on the reason that the property is being sold. You can only serve a notice to the tenants once an Agreement of Purchase and Sale has been signed and the purchaser requires possession of the unit to move in, at that point you would issue the tenant a notice of termination on behalf of the purchaser. The notice period is still 60 days even if the tenants are on a weekly basis. The form required for this reason is a Form N12 and you can obtain it from the Landlord and Tenant Board’s website at www.sjto.gov.on.ca/ltb/forms/. Please note that if the property has more than three units, the termination procedures are different than above. Please contact us if the property has more than three units for further clarification.
My daughter rents a house from us and we’re planning to sell it. Can I give notice for this reason?
Simply “planning” to sell the house is not a valid reason to terminate the tenancy. In order to use that reason for termination you must have signed an Agreement of Purchase and Sale and the purchaser must intend to move into the house. At that point, you would serve the tenant with a 60 days notice on a legal form which is a Form N12.
I’ve rented to the same family for four years and must now sell the property. How do I end the tenancy?
In this situation the first thing you should try is to talk to your tenants about your plans for the house and ask them if they are willing to move out on their own. If they agree to move out you should have them sign an Agreement to Terminate the Tenancy (Form N11). If they do not agree to move out, you will not be able to serve them with a notice of termination, however you can put the house up for sale. You can only give notice to the tenants once an Agreement of Purchase and Sale has been signed and the new owner requires the house for their own personal use. At that point you can serve the Form N12 on behalf of the purchaser.
The Residential Tenancies Act gives landlords the right to show the rental unit to prospective purchasers on 24 hours written notice between the hours of 8 am and 8 pm. If the required notice has been given and the tenant bars entry, contact the Rental Housing Enforcement Unit and they can intervene. RHEU can be contacted at 416-585-7214 or Toll Free 1-888-772-9277.
A landlord of a property containing no more than 3 residential units may, on behalf of the purchaser, issue a notice of termination if the purchaser in good faith requires one of the units for his or her own use. Purchaser’s “own use” means that the permises are required for residential occupation by the purchaser, purchaser’s spouse, child or parent of one of them or a person who provides or will provide care services to the purchaser, the purchaser’s spouse, or a child or parent of the purchaser or the purchaser’s spouse, if the person receiving the care services resides or will reside in the building where the rental unit is located.
You do not have to renew the lease with the tenants and there isn’t a standard form to inform them that you do not wish to renew. However, the tenants do not have to move out at the end of the lease, they have the right to stay until there is a valid reason to terminate the tenancy. If you’re selling the property, you’ll have to do so with the tenants in possession. You can serve a notice of termination once you have signed an Agreement of Purchase and Sale and the purchaser or an immediate family member intends to occupy the unit. At that point you would serve the tenant with a Form N12 giving them 60 days notice to leave at the end of the term or rental period. The forms can be obtained from the Landlord and Tenant Board’s website at www.sjto.gov.on.ca/ltb/forms/.
I’m planning to sell my rental property. Do I have to let my tenants know? Do I have the right to ask tenants to let the potential purchaser view the unit? Does the tenancy continue even after ownership has changed?
You should find the answers to your questions on our Fact Sheet on selling a rental property, here is the link, https://landlordselfhelp.com/media/2017-Selling-a-Rental-Property.pdf.
Once you decide to sell the unit, all you can do is inform the tenant that the unit is up for sale, you cannot issue a notice of termination based on that reason. You are only be able to serve them a notice to vacate once you have signed an Agreement of Purchase and Sale AND the purchaser plans to move in to the unit. At that point you would serve them with a 60 days notice and on the legal form which is a Form N12. If the purchaser is not planning to live in the unit then the tenants have the right to remain.
I want to sell my rental property and show it to potential buyers, what notice am I required to give my tenants?
A landlord who wishes to enter a rental unit to show it prospective buyers of the rental property must provide the tenant with 24 hours written notice specifying the day and time of entry between the hours of 8am and 8pm. Please refer to our fact sheet on Selling Your Rental Property for additional information located at: https://landlordselfhelp.com/media/2017-Selling-a-Rental-Property.pdf.
I need to show the premises to an appraiser, what are my rights for gaining access to the rental unit?
The landlord has the right to enter the rented premises to allow a potential mortgagee or insurer of the property to view the rental unit provided the landlord follows the notice provisions specified in the Residential Tenancies Act. The landlord must provide the tenant with 24-hour written notice that specifies the reason for entry, the day of entry and a time of entry between the hours of 8 a.m. and 8 p.m.
There is not a notice of termination you can serve the tenant based on the reason that you INTEND to sell the house. You can only give them a notice to terminate once you have a purchaser and signed an Agreement of Purchase and Sale AND the purchaser plans to live in the house. At that point you would serve the tenants with a 60 days notice on a Form N12. The notice period for this reason is still 60 days even if they are weekly tenants. You can obtain the form and more information on this issue on the Landlord and Tenant Board’s website at www.sjto.gov.on.ca/ltb/forms/.
Many landlords believe that a tenant can be asked to vacate their rental unit when a property is listed for sale. This is not true. If a property is simply being listed for sale the landlord does not have the right to terminate a tenancy agreement. In fact, if the property is sold and the purchaser does not require the premises for his or her occupation, or the occupation of an immediate family member as defined in the Residential Tenancies Act, the tenant has the right to remain in possession.
Before a landlord lists a rental property for sale, the landlord should understand the tenant’s rights and the landlord’s obligations and responsibilities respecting privacy, security of tenure and circumstances under which a tenancy agreement may be terminated. The Residential Tenancies Act is the law that governs most residential tenancy agreements in Ontario. It addresses several issues related to tenancies and the sale of a rental property, including: entering the rental unit for the purpose of showing to a prospective purchaser; gaining access to the rental unit for the purpose of appraisal, insurance, etc.; termination of a tenancy agreement for the occupation of the purchaser; and penalties for bad faith terminations where the purchaser did not require possession.