The Residential Tenancies Act recognizes the purchaser’s intent to occupy a rental unit when a rental property is sold and accepts this as a valid reason for termination of a tenancy provided the following circumstances are met: A) The property must contain three or fewer residential units; B) The landlord/vendor has entered into an Agreement of Purchase and Sale to sell the residential complex; and C) The purchaser must, in good faith, require possession of the complex or a unit for the residential occupation of himself, the purchaser’s spouse/same sex partner or a child or parent of one of them.

As of July 21, 2020 the landlord is required to give the tenant one month’s rent as compensation, or offer the tenant another acceptable unit if pursuing the N12 notice on behalf of the purchaser. The compensation must be given before the termination date on the notice.