My client wanted to sell, and the property was listed. An offer was submitted that looked good. The new buyer said he wanted to move in. Based on these facts, my seller gave his month-to-month tenant 90 days eviction notice.

The offer went unconditional. At the 90-day mark, the seller visited the property and found the tenant still there. When asked, the tenant said he wasn't moving. 

What the…?

Regrettably I had to advise my seller that the requirements of the Residential Tenancies Act made their eviction notice invalid. Why? Although a buyer wanting to move in is a valid reason for a landlord to give an eviction notice to a tenant: 

1. Notice cannot be given until the deal is unconditional; and
2. The notice period is three tenancy months, not 90 days. 

For example, if the above scenario occurred in October, the tenant's notice could be given any time in October but, at the latest, on or before October 31. Three tenancy months' notice would then be November, December and January. The tenant would have to be out on January 31, 2023.

This could be big trouble for seller clients. A buyer wants possession, but the seller cannot provide it. If the tenant digs in his heels and refuses to move, sellers will likely have to give a new eviction notice that gives three tenancy months (not 90 days) notice. Will the buyer wait that long? They could likely walk. 

If you advise a seller on this kind of situation, you must know your Residential Tenancies Act timelines!

Protect yourself.

Cheers,

Barry

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