If you currently have a tenant in the property being sold, arrangement must be made to roll over the tenancy to the new owner or evict the tenant so the new owner can take clear possession of the property.
Transferring Tenancy Agreement
If you are transferring the Tenancy Agreement to the new owner, the Agreement must be provided to the new owner. Care should be taken to ensure the Agreement conforms to the latest requirements of the Residential Tenancies Act. You should also review ss. 38 and 39 of the Act to understand your risks and obligations even after the property is sold.
Ending the Tenancy
Ending a tenancy must be done in a very specific manner using specific forms provided with the Residential Tenancies Act. If you fail to properly notify the tenant of the eviction, they may refuse to leave and it can take more than three months to obtain an order to have them escorted off the premises. All the while, you would be on the hook to pay interest to the new owner.
Please ensure you have properly notified the tenants of their eviction to minimize the risk that they attempt to remain in the property after the date of possession. For more information, review the Act and visit the Office of Residential Tenancies website.
Easy eLaw is happy to assist in transferring or ending a Tenancy Agreement. If you are concerned about this being done properly, don’t hesitate to ask for help. We can provide an estimate as to the cost of legal services based on the specific circumstances.