What happens when you buy a Markham home that has a tenant living in it?When you buy a tenanted home in Ontario, the tenancy usually continues and you become the landlord. If you or a close family member want to move in, the seller can give the tenant a notice for the purchaser’s own use once the sale is firm, for homes with three or fewer units. The notice must give at least 60 days and end on the last day of a rental period or the lease term, and the tenant must receive one month’s rent in compensation. A tenant can dispute it at the Landlord and Tenant Board, which can delay vacant possession, so plan closing dates carefully.
Many Markham homes, condos and basement units are rented when they come up for sale. Buying one can work well, whether you plan to keep the tenant or move in yourself, but the rules matter.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, helps buyers understand the tenancy before they offer and plan closing around it.
Keeping the tenant
If you plan to rent the home, the lease and its terms transfer to you. Rent increases still follow Ontario’s rules, and the tenant’s deposit, usually last month’s rent, transfers through your lawyer on closing. Ask for:
- A copy of the lease and any changes.
- The current rent and the date of the last increase.
- Confirmation of the last month’s rent deposit and interest owing.
- A tenant acknowledgement or estoppel letter confirming the terms, if possible.
Moving in yourself
| Rule | What it means |
|---|---|
| Who can move in | The buyer, their spouse, child or parent, a spouse’s child or parent, or a caregiver |
| Type of home | Residential complexes with three or fewer units, including many condos |
| When notice is given | After the agreement is firm, by the seller on the buyer’s behalf |
| Notice period | At least 60 days, ending on the last day of a rental period or the lease term |
| Compensation | One month’s rent, or another rental unit acceptable to the tenant |
| Intent | The person must intend to live there for at least one year |
Notices given in bad faith can lead to significant penalties, including compensation of up to twelve months’ rent. Changes to Ontario’s tenancy rules in 2026 did not remove the compensation requirement for purchaser notices.
Looking at a tenanted home?
Michael John Lau can help you review the tenancy and plan your closing around it.
Book a buyer consultationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Timing and risk
A tenant who disputes a notice can stay until the Landlord and Tenant Board rules, which can take months. If you need vacant possession by a certain date, discuss with your lawyer whether the agreement should be conditional on vacant possession, or whether a negotiated move-out with the tenant, in writing, is more realistic. Some tenants agree to leave earlier in exchange for help with moving costs.
Basement suites and second units
If the home has a rented basement suite, check whether it is a legal, registered second unit. That affects insurance, financing and whether you can keep renting it. See Markham’s legal basement suite rules.
Showings and inspections
Tenants are entitled to written notice before entry, at least 24 hours in most cases, and showings must respect their rights. Expect fewer showing times and plan your inspection early. Tenanted homes may also show less well, which can be an opportunity on price.
Financing a tenanted home
If you plan to live in the home, tell your lender, since lenders treat owner-occupied and rental properties differently. If you plan to keep the tenant, some lenders count part of the rent toward your income. For more on being a landlord, see the first-time landlord’s guide.
Before you offer
- Get the lease, rent amount and deposit details.
- Decide whether you will keep the tenant or move in.
- Ask your lawyer about notices, timing and conditions.
- Plan your own housing in case vacant possession is delayed.
Ultimately, the decision is yours. The goal is to make sure you have all the information before you buy a tenanted home.
With a tenanted home, the lease is part of what you are buying. Call the Kaizen Real Estate Team at (647) 370-8885 or book a consultation.
Frequently asked questions
Does a lease transfer when a house is sold in Ontario?
Yes. The tenancy usually continues and the buyer becomes the landlord.
Can I move into a home I buy if there is a tenant?
Often yes, for homes with three or fewer units. The seller gives notice for the purchaser's own use after the deal is firm.
How much notice does a tenant get when a home is sold?
At least 60 days, ending on the last day of a rental period or the lease term.
Do tenants get compensation when a buyer moves in?
Yes. The tenant must receive one month's rent, or another acceptable unit.
What if the tenant refuses to leave?
The matter goes to the Landlord and Tenant Board, which can delay vacant possession. Plan for this with your lawyer.
Can I see a tenanted home before buying?
Yes, with proper written notice to the tenant, usually at least 24 hours.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Call (647) 370-8885. Purchaser's own-use rules are from Ontario's Residential Tenancies Act (sections 49 and 49.1). Notes on the 2026 amendments are as summarized by Jatin Dua (updated 2026). This is general information, not legal advice; speak with a lawyer or licensed paralegal. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
