Selling a Toronto Condo with Tenants: Ontario Landlord Rules (2026)

The tenant's rights through a sale

Under Ontario's RTA, a sale of the property does not terminate the tenancy. The new owner steps into the landlord position; the tenant continues under the same lease and at the same rent. This protects tenants from de facto eviction via sale.

The new owner can serve an N12 notice (purchaser's own use) IF they (or a close family member) intend to occupy the unit personally. The notice is 60 days; the tenant is entitled to one month's rent compensation or a comparable unit. The N12 process requires good-faith intent.

If the new owner wants the unit vacant for any other reason (sell vacant to a different buyer, renovate, rent at higher rate), they can't serve an N12 truthfully. The tenant's tenancy continues.

Selling vacant vs. tenanted

The market premium for vacant condos is real but variable:

• End-user buyers (planning to live in the unit themselves) strongly prefer vacant. A tenanted unit can be 3–7% less appealing.
• Investor buyers sometimes prefer tenanted — they avoid the search-for-tenant friction and start collecting rent immediately. A long-term tenant at market rent is a positive.
• The exception: a long-term tenant well BELOW market rent is a negative for an investor — they can't evict without N12 (own use) or N13 (demolition / major repair), and they can't raise the rent above guideline (or by any amount on pre-Nov-2018 occupied units).

For most Toronto condos with above-market or at-market rent and a cooperative tenant, the vacant-vs-tenanted price gap is smaller than sellers assume. The friction (clearing the unit before listing) often costs more than the premium.

Asking the tenant to leave

If you want to sell vacant, your options:

• Mutual termination: tenant agrees to vacate by an agreed date. The landlord typically offers compensation — one to three months' rent is common in 2026 Toronto. Sign Form N11 (Agreement to Terminate). Voluntary.
• End of fixed term: if the lease is fixed-term, the tenant can simply choose not to continue. But the RTA continues their tenancy month-to-month automatically; they don't have to leave.
• N12 by yourself for own use: only valid if you (or a close family member) actually intend to occupy. Bad faith is exposed to LTB consequences and tenant damages.

You cannot evict to sell vacant. The N12 (own use) is the closest legal route, and it has to be honest.

Showings while tenanted

The RTA permits the landlord to enter for showings to prospective purchasers, with 24 hours' written notice, between 8 a.m. and 8 p.m. The tenant doesn't have to be present.

Practical issues:

• Most tenants tolerate occasional showings; few accept open-ended access. Schedule showings in defined windows (e.g. Saturday 12–3, Wednesday 5–7) and book within those.
• Tenant cooperation matters: a hostile tenant can show poorly, leave the unit messy, or speak negatively to buyers. Some sellers offer a modest financial incentive ($500–$1,000 for the listing period) for full cooperation.
• The unit will photograph as it's lived in — you can't require the tenant to declutter or stage. Manage buyer expectations.

What the new owner inherits

At closing, the new owner steps into the landlord role:

• The existing lease continues.
• The rent deposit is transferred from old landlord to new landlord at closing (your lawyer handles the trust transfer).
• The new owner cannot raise rent above the guideline (if rent-controlled) or by any amount (if post-Nov-2018 unit), subject to 12-month/90-day rules.
• If the new owner wants to occupy, they serve N12 themselves — the seller doesn't do it for them. Notice runs 60 days from service, so possession typically ~75–90 days post-closing.

Buyers planning to occupy should price the N12 + waiting time into their analysis. Sometimes a vacant unit at a slight premium is the better overall deal.