How can I proceed with the eviction of a tenant while in the process of selling a property?
To facilitate the eviction of a tenant for the purpose of allowing a buyer to move in, a landlord must issue the appropriate notice of termination.
Questions similar to evicting a tenant when selling include:
- A Landlord Wants to Evict the Tenant Because the Property Is Being Sold. Is This Legal?
- When a Landlord Sells Property In Ontario Does the Tenant Have to Leave?
- Is a Landlord Allowed to Evict a Tenant When Selling the Property?
- Can a Landlord Evict a Tenant When Selling the Property?
- How Do I Evict a Tenant When I Am Selling a Property?
Assessing if a tenant has the right to remain in the property when the landlord is selling.
In Ontario, the legal framework concerning the eviction of a tenant to make way for a purchaser to move in is highly specific, and…
procedural. When a landlord is in the process of selling a property, careful attention must be paid to the contents of the Agreement of Purchase and Sale, particularly focusing on the details pertaining to the closing date and any terms concerning extensions and penalty clauses.
When a landlord commits to providing vacant possession to a purchaser, it’s crucial to recognize that the landlord only wields control over a part of the process—specifically, the issuance and service of an N12 – Notice of Termination for Landlord’s, Landlord’s Family Member, or Purchaser’s Own Use form to the tenant. It’s important to note that such a notice may only be issued and served at the conclusion of a lease term. Furthermore, this form of termination is not applicable and, therefore, invalid if the premises contain more than three (3) rental units. Additionally, the rules governing eviction during property sales prohibit eviction if the landlord is selling the property to a relative of the landlord.
The process of acquiring a property with vacant possession typically unfolds within the framework outlined in the Agreement of Purchase and Sale documentation. The sequence commences with the seller, who is also the landlord, duly completing and serving the N12 – Notice of Termination for Landlord’s, Landlord’s Family Member, or Purchaser’s Own Use form as mandated by the Residential Tenancies Act, 2006, S.O. 2006, Chapter 17. This form necessitates the seller to provide the tenants with proper notice at least sixty (60) days prior to the termination date.
Subsequently, the tenant has the option to vacate the premises by the specified date on the notice. However, if the tenant believes that the notice was issued in bad faith, the tenant may contest it through a hearing at the Landlord Tenant Board. It’s worth noting that once the landlord, as the seller, serves the notice to the tenant, they can promptly file the notice with the Landlord Tenant Board using the L2 – Application form. Additionally, this type of termination is not applicable if the premises consist of more than three (3) rental units. Furthermore, eviction is prohibited by the rules governing property sales if the landlord is selling the property to a relative.
Rules Regarding Notice
When a landlord aims to evict for the purpose of selling to a purchaser with intentions of ‘own use,’ the regulations concerning the eviction notice period are highly specific. Frequently, landlords may inadvertently overlook these rules, leading to issues such as failing to provide the proper notice document with the required advance notice, among other lapses. Therefore, it is crucial to adhere to the absolutely necessary N12 form as stipulated by the Residential Tenancies Act, 2006, S.O. 2006, Chapter 17, the Landlord Tenant Board, and ensure the proper and timely service of the N12 form. Additionally, filing the correct documents with the Landlord Tenant Board is imperative, as errors on the notice form can have severe consequences, potentially requiring the process to restart.
Furthermore, landlords should be aware that once a hearing date is scheduled at the Landlord Tenant Board, it becomes essential to involve the purchaser. The purchaser must provide an Affidavit, sworn or affirmed under Oath, and attend the hearing to testify, also under Oath, affirming the intention to move into the premises promptly upon taking possession of the property following the closing of the purchase from the landlord.
In law, the seller is without a requirement to provide compensation the tenants; however, to avoid conflict and potential delays, the seller may choose to do so whereas a landlord may negotiate a ‘cash for keys’ agreement with the tenants. A ‘cash for keys’ agreement occurs when a landlord, without use of undue pressure, enters into a deal to buy out a tenant. In such an effort, it is advisable that the landlord obtains the assistance of a legal professional to negotiate the agreement as the terms must be negotiated within the law. Trying to negotiate such a deal, or allowing a real estate agent to negotiate such a deal, is ill advised. Often when the landlord or a real estate agent takes on this task, failures to abide by the precise law lead to breach of the rights of the tenant with a possibility that such rights will be pursued by the tenant via applications seeking protections and remedies brought to the Landlord Tenant Board. Note also that a real estate agent is legally unable to provide legal services without holding a proper license from the Law Society of Ontario.
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