Yes, you can sell a condo in Ontario with a tenant still living in it. What surprises most owners is that the tenancy does not end when ownership changes hands. The buyer steps into your shoes as the new landlord, and the existing lease, the rent, and the last month's rent deposit all transfer with the unit.
This is set out in the Residential Tenancies Act, 2006, the provincial law that governs almost every rental relationship in Toronto. Selling the property is not, on its own, a reason to evict anyone. If your tenant is on a fixed term lease, that term has to run out before anything changes, and even then the tenancy simply rolls into a month to month arrangement. A buyer who is an investor often wants exactly this. They keep a paying tenant and skip the work of finding a new one.
The situation shifts when the buyer wants to move in themselves. Under section 49 of the Act, a buyer who in good faith needs the unit as a home for themselves, a spouse, a child, a parent, or a caregiver can ask you to end the tenancy on their behalf. You do that by serving the tenant an N12 notice, but only once you have a firm agreement of purchase and sale in place. The N12 has to give at least 60 days of notice ending on the last day of a rental period, and you, as the seller, must pay the tenant one month of rent as compensation before that date. Using an N12 when nobody actually moves in can bring penalties at the Landlord and Tenant Board.
Showings carry their own rule. You or your agent must give the tenant 24 hours of written notice before each visit, with entry happening between 8 a.m. and 8 p.m. A cooperative tenant makes the whole process smoother, which is why some owners negotiate an agreed move out date or offer an incentive to leave. Before you list, it helps to weigh whether to sell or keep renting the condo. Keep in mind too that a unit you have been renting usually does not qualify for the principal residence exemption, so capital gains tax can apply when it sells.
Related reading: Should You Sell or Rent Out Your Condo in Toronto?, What Are the Costs of Selling a Condo in Toronto?, and Can Your Ontario Condo Corporation Restrict Rentals?
