Selling a Home That’s Still Tenanted: The Rules and How It Actually Works
Selling doesn’t mean you can evict — the 24-hour notice, the lease that follows the home, and the truth about N12
My property is still tenanted and I want to sell — can I just make the tenant leave, and how do showings work?
You cannot evict simply because you’re selling — but there is a legal path. Under Ontario’s Residential Tenancies Act (2006), a sale does not end the lease; it transfers automatically to the new owner, who takes on the previous landlord’s rights and duties. Showings require 24 hours’ written notice, between 8am and 8pm. If a buyer genuinely needs the unit for their own use, the seller can serve an N12: it owes the tenant one month’s rent, requires 60 days’ notice, and must end on the last day of the rental period.
Source: Ontario Residential Tenancies Act, 2006; Tribunals Ontario (LTB) Guidelines 12 & 19.
‘There’s a tenant in the unit — can I just get them out and sell it empty?’ That’s the most common misconception about selling a tenanted home. The answer is no — Ontario protects tenants firmly, and a sale by itself is not grounds to evict. That doesn’t mean you can’t sell; it means you follow the rules. This article lays out what owners, buyers, and tenants each need to know so the sale goes smoothly.
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Showings: 24 hours’ written notice is mandatory
Per the RTA, a landlord (or a salesperson registered under TRESA 2002, with the landlord’s written authorization) showing the unit to a prospective buyer must give the tenant at least 24 hours’ written notice, stating the reason, the day, and a time between 8am and 8pm. Selling does not waive this. A tenant can’t refuse just because the time is inconvenient, but can deny entry if the notice doesn’t meet the RTA’s requirements.
The lease follows the home to the new owner
Buyer’s own use: the full N12 conditions
🚨Never use a ‘fake own-use’ N12 to clear out a tenant and flip the property. If the LTB finds bad faith, the former landlord can face heavy compensation and an administrative fine. Use N12 only for a genuine, good-faith own-use need.
💡 The most important — and most litigated — point: an N12 must be in good faith. At an LTB hearing, the landlord must prove the buyer (or eligible family member) genuinely intends to move in. If the LTB finds the N12 was given in bad faith, the former landlord can face serious penalties — per the LTB, these can include compensation of up to 12 months’ rent, a rent-differential award, moving costs, and more, plus an administrative fine. Don’t use an N12 as an eviction shortcut.
Tenanted vs vacant sale: the real difference
This is market reality, not law: a tenanted home usually has a smaller buyer pool — many owner-occupier buyers want vacant possession and won’t take the risk a tenant doesn’t leave on closing, which can narrow your buyers to investors. And you cannot evict to stage or improve the showing (the law forbids it). So tenanted homes often sell for less, and slower, than vacant ones.
To sell well, get the tenant on your side first
Listing for sale and lease at once: possible, but manage expectations
Frequently Asked Questions
If the home sells, does the tenant have to move out?
No. Per the RTA, a sale does not end the lease — it transfers automatically to the new owner. A tenant can only be required to leave through an LTB eviction order; a change of ownership is not grounds to evict.
Can I show the home to buyers without the tenant present?
You must give the tenant at least 24 hours’ written notice stating the day and a time between 8am and 8pm. With proper notice the tenant can’t refuse for ‘inconvenience,’ but you can’t enter without notice.
A buyer wants to live in it — how do I legally get the tenant out?
The seller serves an N12, provided the buyer in good faith intends own-use occupancy (themselves or eligible family). It requires one month’s compensation, 60 days’ notice, and must end on the last day of the rental period. The intent must be genuine.
Does a tenanted home always sell for less?
It’s a market tendency, not a rule. Tenanted homes usually have a smaller (more investor-leaning) buyer pool and don’t show as well, so they often sell for less. But it depends on the lease terms, rent level, and buyer type — there’s no fixed discount.
Arthur Zhao
Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · GUILD Elite
VP & Branch Manager, Bay Street Group Inc.
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