What happens when a landlord dies and you inherit the property.
Written by Sarah Mumtaz and Vy Tran
When someone inherits a tenanted property, one of the first questions is often: “Can I ask the tenant to leave?” The answer, in most cases, is not immediately.
Under the Residential Tenancies Act (“RTA”), the death of a landlord does not end an existing tenancy. Instead, the landlord’s estate becomes the landlord, typically through the executor or estate trustee. The person steps into the shoes of the deceased landlord and assumes all legal rights and responsibilities under the RTA.
This means that the lease continues, the tenant keeps their legal protections, and the new owner cannot simply change the locks or demand that the tenant move out.
In short, inheriting a property also means inheriting the legal relationship with the tenant.
So, when can you ask the tenant to leave?
There are only limited situations where a tenant can be required to vacate because of a change in Ownership. The two most common involve personal use:
1. You or your immediate family plan to move in
You may be able to end the tenancy if you, or certain close family members, genuinely intend to move into the unit for at least one year.
“Immediate family” under the RTA includes:
- A spouse;
- A parent;
- A child; and/or
- A spouse’s parent or child
- A person who provides or will provide care services to any of the above
2. You sell the Property to someone who plans to move in
If the property is sold and the purchaser, or their qualifying family member, intends in good faith to move into the unit for at least one year, the tenancy may also be terminated on that basis. This will require you to have signed an Agreement of Purchase and Sale of the unit.
The proper legal process matters.
Even in these situations, a tenant does not have to leave automatically.
The landlord (or estate trustee) must serve a Form N12 – Notice to End your Tenancy Because the Landlord, a Purchaser, or a Family Member Requires the Rental Unit.
Key requirements include:
The tenant must receive at least 60 day’s notice. The termination date must fall at the end of a rental period and be at least 60 days after the notice is served. However, in both cases, the tenant can choose to terminate the tenancy sooner than the date you’ve set out as long as they give the landlord at least 10 day’s notice.
Compensation is mandatory. The landlord must either pay the tenant one month’s rent as compensation or offer them another rental unit that is acceptable to tenant. This must be provided on or before the termination date in the notice.
Importantly, if the tenant disputes the notice, the matter may proceed to a hearing at the Landlord and Tenant Board (LTB), where the landlord must show the notice was given in good faith.
Inheriting property means inheriting legal obligations
For many beneficiaries, a rental property can feel like a financial asset, but it’s also a regulated legal relationship. Missteps in the eviction process can lead to delays, dismissed application, or even compensation claims from tenants.
If you are administering an estate that includes a tenanted property, getting legal guidance early can help you understand your options, timelines, and risks before taking action. It’s always best to reach out to your Estates Lawyer to guide you through the process.