By: Matt Busch

Terminating a tenancy

Tags: Terminating a tenancy

A landlord may only terminate a tenancy for 3 reasons. Note: the tenancy must be month to month, OR approaching the 60 day advance of the anniversary for any of the following to take place: 

1. Landlord takes a rental unit back for their personal use. Cannot be re-leased within one year of the termination date. 

2. Landlord takes the rental unit back for an immediate family member's use.  Cannot be re-leased within one year of the termination date. 

3. To transfer the unit to a new owner as vacant. This owner's intention can not be to lease out the unit once possession is taken. (note: legally it has to be sold first then the 60 days notice is provided to the tenant -  ie. you could sell with vacant possession but it would require that you give the tenant the required 60 days notice in advance of the monthly payment date. OR you can sell it with the option to keep the existing tenant. which could close anytime.)

A landlord has to give 60 days' notice in advance of the billing date of their intention to terminate the tenancy. They can do this via the attached form (form N12), this form would not be deliverable until the sale is in place.

There may be an option where you get them out early by offering them an incentive, if the incentive is given It is optimal if the tenant signs form N11, there is never any recourse on their behalf. (N11)

When selling the unit you must include a clause like the one below in the sale agreement, so that you are following the landlord and tenant board rules per the above. 

The buyer agrees that they or their immediate family intends to move into the property on closing. In this regard, the seller agrees to provide the applicable 60 days’ notice to the tenant using Form N12 under the Residential Tenancies Act, on behalf of the buyer. The buyer agrees to provide whatever support information may be required to demonstrate that the buyer or their immediate family will in good faith be moving into the property on closing and intending to remain on the property for at least one year after closing and to indemnify the seller for any damages suffered by the seller if the buyer does not remain in the property for at least one year after closing. In the event that the tenant disputes the notice as given, then the parties agree to extend the closing of this transaction to a period not more than 30 days, in order to affect the eviction of the tenant. In the event that vacant possession cannot be obtained prior to closing, as extended, for any reason, then the buyer shall have the right, but not the obligation, to complete the transaction and accept the tenant, or cancel the agreement and have any deposit returned, without interest or deduction. 
Step 1: 
Templated email, adjust as needed, based on the circumstance. To let the tenant know of intentions 
Hi Shelley, 
We're thoroughly enjoying having you as our tenant at 1 Hurontario. 
It's our plan to sell it in the not-so-distant future. We thought we would reach out to know your intentions and to offer you the option, first, if you would like to purchase. (Not mandatory)
Were fully aware of the rules and regulations regarding the tenancies act (24 hours notice) and given the current market conditions we feel this is an optimal time to be selling. In order to circumvent the 24-hour showing notice requirement we were wondering if there a period of time in the next month or so where you plan on being away for a week so that if our agent was to put it onto the market, this way the showings would not be too much of an imposition. If not, what is your daily routine/ schedule so that we can help coordinate showings around that?
I'll look forward to your reply, also feel free to call or text me.

Step 2:
Templated email, adjust as needed, based on the circumstance. To deliver tenant notice

Hi Shelley, 

Thanks for accommodating our showings, and making it easy for us to sell the unit. The place looked nice. Please if you ever need a landlord recommendation or letter of reference please feel free to share my contact details. 

Please find attached the official notice for your records of the required form to complete our tenancy. If you have any questions I'm just a call or text away. 

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