Selling a Tenanted Property
Thinking of selling your home or condo while it is rented? If so, you should familiarize yourself with the rights and responsibilities of yourself and your tenant under the Residential Tenancies Act.
You cannot evict your tenant in order to sell your home or condo. The tenant has the right to continue living in the residence while it is on the market for sale and they must be given a minimum of 24 hours advance notice before each showing.
The buyer of your property may be an investor and choose to assume your tenant. In this case, the terms of your lease with your tenant are transferred to the new owner and the necessary adjustments are made on closing (ie. last month's rent, outstanding rents owed etc).
If the purchase of your property is for the personal use of the buyer or their family members, the buyer may obtain vacant possession provided that the closing date is a minimum of 60 full calendar days. The proper prescribed Notice to End the Tenancy (Form N12) must be given to the tenant once the sale becomes finalized. All notices are available through the Landlord and Tenant Board.
If you think that your tenant would be willing to vacate before putting your home or condo on the market, consider offering them an incentive to do so. Keep in mind however that they must fully agree to the earlier move out as they have the right to stay in the home. If you have mutually agreed on a move out date, document it using Form N11 available from the Landlord and Tenant Board. Consider the benefits of putting your home for sale after the tenant vacates:
1) You can clean and prepare the home in its best condition possible to attract the most money
2) You can offer a flexible closing date to those buyers who cannot accommodate the 60 days notice required for a tenanted home
3) Agents representing their buyers will be able to easily book last minute showings which reduces the risk of buyers missing out on viewing your home
When I represent a seller with a tenanted property, I handle every detail on behalf of the landlord including an initial meeting with the tenant to explain the sale process in order to make them feel at ease.
If you are thinking of selling your rented home, call me first to find out your best options for a successful sale!
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The information provided herein must only be used by consumers that have a bona fide interest in the purchase, sale or lease of real estate and may not be used for any commercial purpose or any other purpose.
Information is deemed reliable but is not guaranteed accurate by TREB.
Toronto Real Estate Board - IDX Last Updated: 10/18/2017 3:50:45 AM