Selling a rental property with tenants in Alberta does not end the tenancy: the buyer becomes the landlord and takes over the security deposit (Residential Tenancies Act s.1(1)(f)(iii), s.47(1)). A monthly tenancy can be ended for the sale only after the deal is firm and the buyer asks in writing, with 3 tenancy months' notice. A fixed-term lease runs to its end date.
This FAQ is for Alberta landlords listing a rented home and for tenants whose home is for sale. For the full list of reasons a landlord can use to end a monthly tenancy, see Alberta landlord notice to end a monthly tenancy.
Does selling a rental end the tenancy in Alberta?
No. In Alberta, "landlord" includes the owner's successors in title (RTA s.1(1)(f)(iii)), so the buyer steps into the seller's place under the same tenancy agreement. A buyer who wants the unit empty has to rely on the rules for ending a tenancy, not on the sale itself.
How much notice does a tenant get for showings in Alberta?
An Alberta landlord can enter to show a rented unit to prospective buyers or mortgagees, directly or through a real estate broker, after giving the tenant at least 24 hours' written notice (RTA s.23(3)(d), (4)(a)). Each notice must be in writing, be signed by the landlord or agent, state the reason, and name a date and time between 8 a.m. and 8 p.m. that is not a holiday (s.23(4), (5)). The time may be a window of reasonable duration with a set start and end (s.23(6)).
A tenant who has given written notice of a day of religious worship other than Sunday is protected on that day (s.23(4)(b)). A tenant can also agree to other times; entry with consent is always allowed (s.23(1)). Entry outside these rules is an offence with a fine of up to $5,000 (s.60(1)). See how Alberta entry notices work.
Can an Alberta landlord end a tenancy because the property is sold?
Only a periodic tenancy, and only once the sale is firm. The regulation allows a landlord to end a periodic tenancy if all conditions of the sale agreement are satisfied or waived and the buyer asks in writing for the notice, where either the buyer or a relative intends to live there, or the sale is of one detached or semi-detached house or one condominium unit (AR 211/2004 s.2(2)(b)).
| Tenancy | Can the sale end it? | Notice | Source |
|---|---|---|---|
| Monthly | Yes, once the sale is firm and the buyer asks in writing | 3 consecutive tenancy months | RTA s.8; AR 211/2004 s.2(2)(b) |
| Yearly | Yes, on the same conditions | At least 90 days before the end of the tenancy year | RTA s.9(b) |
| Fixed term | No; it ends on its end date | None needed at the end date | RTA s.15 |
The notice must be in writing, signed, give the reason, identify the premises and state the end date (s.10(1)). If the tenant moves out and the premises are not used for the stated reason within a reasonable time, the landlord contravenes the Act (s.6(2)), an offence with a fine of up to $5,000 (s.60(1)). The Act does not require the landlord to pay the tenant compensation for a sale notice.
What happens to the security deposit when an Alberta rental is sold?
The buyer takes on the seller's rights and obligations for the tenant's security deposit (RTA s.47(1)). Within a reasonable time, and at no cost to the tenant, the buyer must serve the tenant with a new notice of landlord and a statement of the deposit and interest standing to the tenant's credit on the date of the purchase (s.47(2)). A notice of landlord gives a landlord's name and a postal address and physical location in Canada (s.18(1)). See Alberta security deposits.
Frequently asked questions
Can I give notice as soon as I accept an offer?
No. A sale is a prescribed reason only when all conditions of the agreement have been satisfied or waived and the buyer has asked in writing (AR 211/2004 s.2(2)(b)). A notice served earlier relies on a reason that does not yet exist.
Can the buyer raise the rent after closing?
The buyer is bound by the same rent increase rules as any Alberta landlord. See Alberta rent increase rules and raising rent during a fixed-term lease.
Does the tenant have to allow open houses?
A tenant must allow entry that meets s.23: written notice at least 24 hours ahead, for showing to prospective buyers, between 8 a.m. and 8 p.m., not on a holiday. Anything outside that needs the tenant's consent (s.23(1)).
Can I end a fixed-term lease early because I am selling?
Not on your own. A fixed term ends on its end date (RTA s.15), and the prescribed reasons apply to periodic tenancies (s.6(1)). You can agree an earlier end with the tenant in writing.
Hand over a clean tenancy file
Once the sale is firm and the buyer has asked in writing, the free Alberta landlord's notice to end a periodic tenancy (AR211-F1) puts the reason and the end date on paper.
Free • No signup required
Additional resources
- Residential Tenancies Act, SA 2004, c R-17.1 (ss.1, 6, 8, 9, 10, 15, 18, 23, 47, 60)
- Residential Tenancies Ministerial Regulation, AR 211/2004 (s.2)
- Ending a tenancy in Alberta: notice periods
- Alberta landlord guide and Canadian Landlord Resource Center
