Selling a Tenanted Rental Property
One of the most complicated circumstances we deal with is the sale of an occupied rental property. What rights do the parties have and what is the proper and lawful way to pursue an eviction? This is a complicated situation that can quickly devolve into a headache for the sellers, buyers and tenants alike.
The short and generalized answer is that the purchasers of a property in Ontario assume the liabilities and obligations that flow with the property they are buying, including obligations under a residential tenancy. The tenancy is bound to the property, not the property owner. When a landlord opts to sell their occupied rental, they do not have the right to evict the tenants in order to facilitate the listing of the property. This is why it is never advisable to include a vacant possession clause in an agreement for purchase and sale because there is no way to ensure that the unit will be vacant at the time the transaction closes.
There are lawful ways to pursue an eviction if the purchaser of the property intends to occupy the rental property for their own personal use, but the process is highly technical, and should be handled by an experienced legal representative. The options might include the execution of an N12 or N11 Form, with the corresponding procedural requirements and subsequent applications to the Landlord and Tenant Board.
Our firm represents both landlords and tenants before the LTB. We have the experience of working on both sides of an argument so that we can predict and exploit the pitfalls of your counterpart and set you up for success. We love what we do and we will work hard to turn our passion into your success!
With such high stakes, hiring the right legal team is incredibly important. If you are buying or selling a tenanted rental property, we can help guide you through the eviction process, and the transition of a rental property from one owner to the next. If you are a tenant facing eviction from your home in a real estate transaction, we can help you fight back to protect your rights.
Evictions for Property Sale? Let's Talk.
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