What to Look Out For When Selling a Tenanted Property

07 August 2019

Don't Sell Your Tenanted Property Without Being Aware of This First!

For investors, selling a property with a Tenant can be dangerous. It can also be expensive. Allow us to explain…

Let's say that you have just sold your property. The Buyer requests you, as the Seller, to serve your Tenant with an N12 form, asking them to vacate in 60 days. The reason is that the Buyer or an immediate family member wants it for their personal use.

60 Days pass and the Tenant moves out. Then, the Buyer DOES NOT move in, but instead, rents out the property for a few hundred dollars more per month than the current lease. The former Tenant finds out. Now there will be fines from both the rental tribunal and there will also be a lost case in small claims court.

Certainty the Buyer and the Buyer's agent will be liable. So how does the Seller and the Listing Agent protect themselves? Get an affidavit from the Buyers lawyer at closing stating that the Buyer will be moving into the property. Make this a requirement of the Agreement of Purchase and Sale as well. If you do this, the courts can't ask you to do more, and you will be protected.

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