In short
If there's a tenant, it isn't vacant, and Ontario tenancy rules decide when and how the tenant can be asked to leave.
Confirm it in writing in your agreement, especially on rental properties.
How it works in Ontario
The standard Ontario Agreement of Purchase and Sale says the buyer gets vacant possession on completion unless the agreement says otherwise. That means nobody living there and the seller's belongings gone, apart from any chattels included in the sale.
If the home is rented and you want it empty, the agreement should say so clearly, along with what happens if the tenant is still there on closing day.
What if there's a tenant?
A sale doesn't end a tenancy. Under Ontario's Residential Tenancies Act, the tenant keeps their rights and the lease carries on with the new owner unless it's properly ended.
If the buyer, or the buyer's spouse, child or parent, or a caregiver, genuinely intends to move in, the seller can give the tenant an N12 notice once there's a signed agreement of purchase and sale. This applies to buildings with three or fewer residential units, or a condo unit.
The termination date must be at least 60 days after the notice and fall on the last day of a rental period or fixed term. The seller, as landlord, must pay the tenant one month's rent or offer another acceptable unit by that date.
The tenant doesn't have to leave just because of a notice
An N12 starts the process. If the tenant stays, the landlord has to apply to the Landlord and Tenant Board, which can order an eviction only after a hearing. That can take longer than a typical closing.
A notice given in bad faith carries risk too. A former tenant can apply to the Board, and both the seller and the buyer can be ordered to pay.
Before closing
Do your final walk-through to confirm the home is empty and in the condition agreed. If it isn't, call your lawyer before closing, not after.
If you're buying a home with a tenant you plan to keep, the agreement should say so, and your lawyer will usually ask for the lease details and rent deposit information before closing.
Common questions about vacant possession
What does vacant possession mean in Ontario?
Vacant possession means the home is handed over empty on closing day, with no tenants, occupants or seller belongings left behind except included chattels. The standard Ontario agreement provides for vacant possession unless the agreement says otherwise. Confirm it during your final walk-through.
Can a new owner evict a tenant in Ontario?
Only in specific cases and through the proper process. If the buyer or a close family member intends to move in, the seller can serve an N12 notice after the sale agreement is signed, for buildings of three or fewer units or a condo unit. If the tenant won't leave, the Landlord and Tenant Board decides.
How much notice does a tenant get when a house is sold?
When the buyer intends to move in, the N12 termination date must be at least 60 days after the notice and fall on the last day of a rental period or fixed term. The tenant can leave earlier with 10 days' written notice. One month's rent compensation is owed by the landlord.
Does a lease end when a rental property is sold?
No, a sale doesn't end a residential tenancy in Ontario. The tenant's rights continue with the new owner unless the tenancy is properly ended under the Residential Tenancies Act. Buyers who want the home empty should make vacant possession and the tenant's departure clear in the agreement.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.