The real estate transaction may be firm, but the landlord-tenant situation is still very much in progress. Realtors who think their job is done after the deal closes on a tenanted property may be setting their clients up for problems — and themselves up for complaints.
The Closing Does Not End the Tenancy
When a tenanted property closes, the tenancy transfers to the new owner automatically. The existing lease terms, rent amount, and tenant rights all carry over. The new landlord inherits whatever situation the previous landlord left behind — including any disputes or maintenance issues in progress.
Ontario Landlord Representation
Stonegate handles LTB notices and applications for Ontario landlords — flat fee, landlord-only. We represent landlords in Toronto, Brampton, Mississauga, Hamilton, Barrie, Oakville, Vaughan, Markham, Richmond Hill, Burlington, Ajax, Pickering, and Oshawa.
If Vacant Possession Was Promised and Not Delivered
When a vendor promised vacant possession but could not deliver it, the deal may still close under the existing tenancy. The purchaser may have a legal claim against the vendor. Realtors who advised the vendor on how to handle the tenant without legal guidance may have created additional exposure.
The New Owner’s First Steps
After closing on a tenanted property, the new landlord should: notify the tenant in writing of the ownership change and where to pay rent, review the existing lease for any terms that may have been missed, confirm whether last month’s rent deposit was transferred, and check whether any LTB applications are in progress.
Already dealing with this situation?
Stonegate handles LTB notices and applications for Ontario landlords — flat fee, no surprises. We’re landlords too.
LMR Deposit Transfer
The vendor is required to transfer the last month’s rent deposit to the purchaser at closing. If this was not done, the new owner cannot demand another LMR deposit from the tenant. Ensure your purchase agreement addresses this.
Stonegate Legal Services
Dealing With a Tenant Problem?
We handle LTB notices and applications for Ontario landlords — flat fee, no surprises. We are landlords too, so we know exactly what you are dealing with.
