Sale or Foreclosure of Property

Quick Facts
  • When a property is foreclosed the Residential Tenancies Act no longer applies.
  • When a property is sold any rental agreement continues as if there was no change in ownership.
  • When a property is sold the new landlord is responsible for returning the security deposit when the tenant moves out.
  • When there is a change in landlords the new landlord should provide the tenants with their contact information.
What You Need to Know
Important Note
When a property is foreclosed the Residential Tenancies Act no longer applies.

 

When a home is sold any rental agreement (written or verbal) continues as if there were no change in ownership. This means that the new landlord would be bound by the same rules as the original owner in terms of rental agreements, duties and obligations, etc.

If you are on a month-to-month rental agreement, the new landlord would still need to give the usual three months notice to evict you. If a fixed-term rental agreement was signed, like a year-long lease for example, the new landlord would need to wait for that lease to expire before evicting you.

The new owner will be responsible for the security deposit. It doesn’t matter if the new owner fails to sort this out with the previous owner when they buy the property, the new owner is still responsible for returning the deposit to you when you leave.

When a house is sold the law requires the new landlord to provide you with a written notice stating:

  • The landlord’s name, telephone number and address where documents may be received, delivered or served by the tenant.
  • If the landlord has an agent responsible for the residential premises, the Agent’s name, telephone number and address.
  • The amount of the security deposit and the interest to the date when the new landlord took possession of the premises.

Was this information helpful?

Legislation

Provision of rental agreement and information

7. (1) At the time a landlord and tenant enter into a rental agreement, the landlord shall provide the tenant with a copy of this Act and the regulations, and where requested by the landlord, the tenant shall sign an acknowledgement of receipt.

(2)  Where a landlord and tenant enter into a written rental agreement, the landlord shall provide the tenant with a copy of the signed rental agreement within 10 days after it is signed, and where requested by the landlord, the tenant shall sign an acknowledgement of receipt.

(3)  Where a landlord and tenant enter into an oral or implied rental agreement, the landlord shall provide the tenant with a written notice containing the information prescribed in the regulations within 10 days after entering into the rental agreement, and where requested by the landlord, the tenant shall sign an acknowledgement of receipt.

(4)  Notwithstanding the terms of a rental agreement, where a landlord has not complied with subsection (2) or (3), the tenant's obligation to pay rent is suspended and the landlord shall not require the tenant to pay rent until the landlord complies with subsection (2) or (3).

(5)  Where the landlord has complied with subsection (2) or (3), the tenant shall pay all rent withheld from the landlord under subsection (4).

(6)  Rent paid by the tenant to the landlord while the tenant's obligation to pay rent is suspended under subsection (4) may be retained by the landlord.

(7)  At the time a landlord and tenant enter into a rental agreement, the landlord shall provide the tenant with a written notice stating

(a)  the landlord's name, telephone number and address where documents may be received, delivered or served by the tenant; and

(b)  the name, telephone number and address of an agent or other person where the landlord has an agent or another person who is responsible for the residential premises.

(8)  Where a landlord is replaced by a new landlord, the new landlord shall immediately provide the tenant with a written notice

(a)  containing the information set out in paragraphs (7)(a) and (b); and

(b)  stating the amount of the security deposit held under section 14 and the interest credited under subsection 14(7) to the date when the new landlord replaced the previous landlord.

(9)  A landlord shall immediately notify the tenant in writing of a change to the information under paragraphs (7)(a) or (b).

(10)  Where a landlord is a corporation registered under the Corporations Act , a notice under this section shall include the corporation's name as registered under that Act.

(11)  The information provided by the landlord to the tenant in this section shall be provided without cost to the tenant.