Hello Landlords,
Selling a property while it is tenanted can be a complex matter, especially when the tenants are not ready to vacate.
Under the Residential Tenancies Act, 2006, tenants have certain rights, and as a landlord, it’s important to follow the proper legal procedures to avoid any potential disputes or liabilities.
Given that the tenants have five children and are finding it challenging to locate another rental in the same neighborhood, it might be beneficial to offer them some form of relocation assistance. This could make the transition smoother for them and help facilitate the sale process. You can try to negotiate with the tenants for an agreement to vacate, offering incentives like moving assistance, paying for moving expenses, or providing a rent reduction can encourage tenants to agree to move out sooner.
If your tenants are not willing to sign an agreement to vacate, you may still proceed with the sale, but the new owner would need to assume the existing tenancy, unless the property is being sold to a buyer who intends to occupy it themselves or have a family member occupy it. In such cases, you would need to serve your tenants with an N12 Notice to End the Tenancy for Landlord’s Own Use, providing them with at least 60 days’ notice, with the termination date being at the end of a rental period.
If the new buyer intends to occupy the property themselves or wants a family member to live there, you can serve the tenants an N12 Notice for landlord’s or purchaser’s own use. This notice requires a minimum of 60 days’ notice and the termination date must align with the end of a rental period.
If the tenants refuse to leave even after being served with the N12 notice, you may need to apply to the Landlord and Tenant Board (LTB) for an order to terminate the tenancy. However, this should be a last resort after attempting all other options. Ultimately, tenants have the right to stay in the rental property until they are lawfully required to vacate.
Selling a tenanted property requires careful consideration of both legal obligations and the tenants’ circumstances. By understanding the rights of your tenants under the Residential Tenancies Act and exploring a range of strategies—such as serving an N12 Notice, offering relocation assistance, or negotiating a Cash-for-Keys agreement—you can facilitate a smoother sale process while maintaining a respectful and professional relationship with your tenants.
— Landlord Pro Legal SPC
Ph: 226-620-1324
Email: ze@landlordprolegal.ca
Website: http://landlordprolegal.ca\
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