Do I have to move out if my landlord sells the house in Ontario?

No. Under the Ontario Residential Tenancies Act, a property sale does not terminate your tenancy. The new owner steps into the landlord's shoes and the lease continues on the same terms. You only have to leave if the new owner (who must be an individual, not a corporation) serves a valid N12 notice and obtains an LTB order — and even then only after the LTB process concludes.

Does a new owner have to honour my lease?

Yes. In every Canadian province, a lease 'runs with the land.' When a property sells, the new owner inherits the existing lease, including your rent amount, term, renewal rights, and all other conditions. The new owner cannot impose new terms, demand you sign a new lease, or raise rent outside the normal rent-increase rules.

What is a purchaser N12 in Ontario?

A purchaser N12 is an eviction notice under s.49 of the Ontario RTA that allows a purchaser (the person buying the property) to seek vacant possession so they or a close family member can move in. It requires 60 days notice expiring on the last day of a rental period, one month's compensation paid on or before the termination date, and must be on the official LTB Form N12. Even after receiving an N12, you have the right to dispute the eviction at the LTB.

Can a corporation use an N12 to evict a tenant?

No. In Ontario, only an individual purchaser can serve a purchaser N12 — a corporation cannot use s.49 of the RTA because a corporation cannot personally occupy a unit. If you receive an N12 from a numbered company or corporation, you can raise this at the LTB as a defence.

What happens to my deposit when my landlord sells?

Your deposit transfers automatically to the new owner as part of the sale. The old landlord is obligated to hand it over on closing. If the new owner claims they have no record of your deposit, document the original payment and ask the previous landlord in writing to confirm the transfer. In BC, the RTB holds deposits in trust in some circumstances — contact the RTB if there is confusion.

Home BlogLandlord Selling Property — Tenant Rights

CanadaMay 1, 20267 min read

What Happens to Your Lease When Your Landlord Sells? Tenant Rights in Canada

Your landlord just told you they are selling the property. You might be worried you have to leave — but in most cases you do not. Your lease survives the sale. Here is exactly what your rights are in Ontario, BC, and Alberta, and what to watch out for.

The Core Rule: Your Lease Survives a Property Sale

In virtually every Canadian province, a lease "runs with the land." This is a fundamental principle of property law: when a landlord sells, the new owner does not get to start fresh. They inherit the existing tenancy — your rent amount, lease terms, and rights remain exactly the same on closing day.

The new owner becomes your landlord the moment title transfers. Nothing changes for you. You do not sign a new lease. The rent does not increase. Any outstanding repairs the old landlord owed you are now the new owner's obligation.

Common myth to bust

"My landlord sold the building so I have to leave." This is incorrect in Ontario, BC, Alberta, and most Canadian provinces. A sale by itself is never grounds for eviction.

The only exception — and it is a real one — is when a purchaser or new owner follows a specific statutory process to end your tenancy for personal use. Even then, you have the right to dispute it. Read on for the details by province.

Ontario: Your Rights When the Property Sells

Ontario's Residential Tenancies Act (RTA) s.18 states that a new owner steps directly into the landlord's shoes. Your lease continues unchanged and the new owner takes on all existing landlord obligations the moment the sale closes.

The new owner must continue to make repairs and maintain the unit.
They must provide rent receipts on request.
They must use the standard Ontario lease for any new tenants they bring in.
Any outstanding LTB orders against the old landlord bind the new owner.

The new owner cannot demand you sign a new lease, cannot change your rent outside the annual rent-increase guideline, and cannot add new terms or conditions. If they try, those terms are void and you can file with the LTB.

The Purchaser N12 Exception (Ontario)

The one scenario where an Ontario sale can lead to eviction is when the purchaser — the individual buying the property — genuinely intends to move in themselves or have a close family member do so. Under RTA s.49, a purchaser can serve a Form N12 (Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit).

Key requirements for a valid purchaser N12:

60 days notice — the termination date must be at least 60 days after the notice is given, and must fall on the last day of a rental period.
One month's compensation— the purchaser must pay you one month's rent on or before the termination date.
Official LTB Form N12 must be used — an informal letter is not sufficient.
Genuine intent required — the purchaser or a close family member must genuinely intend to occupy the unit.
Individuals only — a corporation cannot use s.49. If the buyer is a numbered company or other corporation, this notice is invalid on its face.

Even after receiving a valid N12, you are not required to leave on the stated termination date. You can wait for the LTB to schedule a hearing. At the hearing you can challenge whether the purchaser genuinely intends to occupy, whether the compensation was actually paid, and whether all procedural requirements were met.

Important: A purchaser N12 is often made a condition of the Agreement of Purchase and Sale. This means the deal may not close unless you agree to leave. You are under no legal obligation to cooperate with a sale condition — that is between the buyer and seller. You still have the full right to dispute at the LTB.

British Columbia: Sale and Tenancy

Under BC's Residential Tenancy Act, your lease survives the sale in the same way as Ontario. The new landlord inherits the tenancy and all its terms on closing.

However, BC RTA s.49(5) allows a new landlord (or the purchaser, where applicable) to issue a Two Month Notice to End Tenancy if they or a close family member intend to occupy the unit. Key rules:

The notice must be on the official RTB form and give at least two months notice.
Compensation of one month's rent must be provided.
The new landlord must be an individual — a corporation cannot use this notice.
You can dispute the notice through RTB dispute resolution within 15 days.

BC also has an additional protection: if a landlord ends your tenancy for personal use and then re-rents the unit within 12 months, you can apply to the RTB for compensation — typically 12 months rent. This is a meaningful deterrent against bad-faith evictions.

If the new owner is a corporation, the personal-use notice pathway is unavailable entirely and your lease simply continues.

Alberta

Alberta's Residential Tenancies Act follows the same core principle: a lease survives the sale of the property and the new owner inherits all landlord obligations including repairs, maintenance, and compliance with the RTA.

Unlike Ontario and BC, Alberta does not have a specific "purchaser personal use" notice form. Instead, standard termination rules apply. For a month-to-month tenancy, a landlord must give proper notice (generally three months for annual tenancies, one rental period for monthly). If the new landlord wants to move in or renovate, they must follow the same termination processes any landlord would use.

Alberta tenants can dispute improper notices through the Residential Tenancy Dispute Resolution Service (RTDRS) or Alberta courts.

What to Do When You Learn the Property is Being Sold

Here is a practical checklist to follow when your landlord announces a sale:

Do nothing — your lease continues. Unless and until you receive formal written notice from a buyer, nothing changes for you.
Review any notice you receive carefully. If you receive an N12 (Ontario) or Two Month Notice (BC), check the date, the form used, and whether compensation was or will be paid. Defective notices can be challenged.
Do not agree to vacate voluntarily without advice.If the buyer or agent pressures you to sign a "move-out agreement," get independent legal advice first. Once you agree to leave, you typically waive your right to dispute.
Attend your LTB or RTB hearing if one is scheduled. You can present evidence that the claimed personal use is not genuine — for example, evidence that the buyer already owns multiple properties and rents them all out.
Keep paying rent to the new owner once notified of the sale. Ask for new banking or payment instructions in writing to protect yourself.

Your Deposit on Sale

Your existing deposit — whether last month's rent in Ontario or a security deposit in BC or Alberta — transfers to the new owner automatically as part of the sale. The old landlord is legally required to hand it over at closing.

If the new owner claims they never received your deposit:

Gather your original documentation — bank records, receipts, or lease clauses confirming the deposit amount.
Contact the previous landlord in writing requesting confirmation that the deposit was transferred.
In BC, the RTB holds deposits in trust in certain circumstances. If there is confusion, file a Deposit Dispute with the RTB to have the funds properly allocated.

A sale does not allow a landlord to pocket your deposit. The new owner is responsible for returning it at the end of your tenancy under the same rules that applied to the original landlord.

Condo Buildings Sold for Redevelopment

A more complex situation arises when an entire building is sold and the new owner plans demolition or major redevelopment. Standard personal-use notices do not apply here — specific demolition notices are required.

Province	Notice Required	Notice Period	Compensation
Ontario	Form N13 (demolition/conversion)	120 days	3 months rent
British Columbia	Four Month Notice (RTB form)	4 months	1 month rent

In Ontario, tenants also have a right of first refusal — the right to move back into the renovated or rebuilt unit at a rent no higher than when they left. This right must be exercised in writing and preserved throughout the process. If your landlord fails to offer you the unit first, you can file with the LTB for significant compensation.