No, you can’t evict a tenant just because you want to sell your house in Ontario. You need a better reason than that.
For example, if the buyer plans to move in, you may be able to end the tenancy, but only under certain conditions.
In this post, we’ll explain what you need to know about selling a house with tenants in Ontario, including when you can ask them to leave and what your options are if they stay.
Can You Sell a House With Tenants Still Living There?
Just because you can’t evict them doesn’t mean you can’t sell your house at all. You can absolutely sell your house while your tenants are still living there, whether you want to put your property on the market or complete a sale.
If someone buys your house with the tenants still in place, they generally take over as the new landlord. Your tenants keep their existing rental agreement, and the new owner has to honour its terms.
And yes, this applies even if the buyer would prefer the house to be vacant. However, if your buyer wants to move in rather than keep the property as a rental, there are some additional rules you’ll need to follow.
Can You Evict a Tenant if the Buyer Wants to Move In?
If you’ve found a buyer who wants to move into your house, you’ll typically need to give your tenant proper notice and compensate them for the trouble. But before you can do either, you need a signed agreement of purchase and sale.
Once you have that, here’s what you’ll generally need to do:
- Give your tenant an N12 notice. This is the official form used when a buyer or an eligible family member genuinely plans to move in. This option applies to properties with three or fewer residential units, as well as condominium units.
- Give them at least 60 days’ notice. The move-out date also needs to fall at the end of their rental period or fixed-term lease.
- Provide compensation. You’ll need to pay them one month’s rent or offer another rental unit they’re willing to accept.
You can find the full requirements in the Landlord and Tenant Board’s N12 instructions.
Just remember that giving your tenant notice doesn’t guarantee they’ll leave on time. If they don’t move out, you’ll need an eviction order from the Landlord and Tenant Board. So, be sure to keep that in mind before agreeing to a closing date that depends on the house being vacant.
How Does Having Tenants Affect Selling Your House?
Having tenants doesn’t necessarily make your house harder to sell, but it can affect how you prepare and market the property. You’ll also need to consider your tenants when arranging showings and negotiating with buyers.
Here are a few things to keep in mind:
- Your potential buyers. Some buyers may be hesitant to purchase a house with tenants, especially if they want to move in right away. On the other hand, investors may see an existing tenancy as a selling point.
- Preparing your home. Since your tenants are living there, you may have less control over how the house looks in listing photos or during showings. You’ll need to work with them if you want to arrange cleaning, staging, or other preparations.
- Arranging showings. In Ontario, you generally need to give your tenants at least 24 hours’ written notice before showing the property to potential buyers. Showings must also take place between 8 a.m. and 8 p.m.
- Choosing a closing date. If your buyer wants the house vacant, you’ll need to allow enough time to follow the proper process for ending the tenancy. Even then, there’s no guarantee your tenants will leave by the date you’ve requested.
If you’re unsure about handling all of this yourself, it can help to work with an experienced real estate agent.
Selling a Tenanted Property in South Georgian Bay?
Whether you’re trying to figure out if you can evict a tenant to sell a house in Ontario or would rather sell with your tenants still living there, our team here at Hawkins Real Estate Group can help you understand your options and choose the right approach.
For real estate expertise in the Collingwood, Wasaga Beach, or surrounding area, contact us to discuss your options today.
