Residential Tenancies: Purchasing Tenanted Property

If you are purchasing property that is occupied by a tenant, a tenant’s right to occupy the property can survive the change in ownership.

If the purchaser or a close family member of the purchaser intends to occupy the property, they must ask the current owner to provide two months’ notice to the tenant. This can only be done when all subjects have been removed and the offer to purchase is unconditional.

This is particularly important when determining the completion and possession dates for the purchase. If the completion date is earlier than the end of the two-month notice period, the tenant is still entitled to remain in the property until the expiration of the notice period.

In these situations, a purchaser must be aware that they may not be able to occupy the property on the possession date. If they are selling their existing residence at the same time, they will have to arrange for alternate accommodation until the end of the tenancy.

If the tenant occupies a suite within the residence, the purchaser requesting that the tenant be evicted must have a good faith intention to occupy the suite. The tenant cannot be evicted for the purposes of renting the suite to a new tenant that is not a close family member of the purchasers.

In situations where the purchaser wishes to keep the existing tenant, the damage deposit and rent will be adjusted for on the completion of the purchase. It is prudent to execute and assignment of the tenancy agreement.

Find the answers you need.

Need advice? We can help. Reach out to our team today.