Guide · Buyers & sellers
Selling a Property in Ontario
Your options for selling, what to prepare, the costs involved, and what happens when the property you are selling has tenants.
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Your options
Most Ontario sellers list with a brokerage on the open market. Some prefer a direct sale to a buyer, such as a property company, which can offer certainty, a flexible closing date or the ability to sell with tenants in place, usually in exchange for a price that reflects those benefits.
Whichever route you take, get independent advice on value and terms before you agree to anything. Haider Real Estate Group buys existing residential property directly; our acquisitions page explains how.
What to prepare
- Your deed or title details and current mortgage statement.
- Recent property tax bills and utility costs.
- Permits and warranties for past work, especially additions, basement units and major systems.
- For a condominium: the status certificate (the buyer often orders it, but having one ready can help).
- For a rented property: every lease, the rent roll, deposit records and any notices served.
Costs of selling
- Brokerage commission, if you list with a brokerage. Commission is negotiable and should be set out in the listing agreement.
- Legal fees and disbursements.
- Mortgage discharge fees and any prepayment penalty from your lender.
- Repairs, cleaning and staging, if you choose to do them.
- Moving costs.
Ask your lender for a payout statement early, because a prepayment penalty can be significant.
Tax considerations
The sale of a property that has been your principal residence for every year you owned it is generally exempt from capital gains tax, but the sale must still be reported to the CRA. A rental or investment property sold at a gain is usually subject to capital gains tax, and previously claimed depreciation may be recaptured. Non-residents of Canada have additional withholding and reporting requirements. Speak to an accountant before you sell.
Selling a tenanted property
A sale does not end a tenancy in Ontario. The buyer takes the property subject to existing tenancies, and the tenant's rights continue with the new owner.
If the property has three or fewer residential units (or is a condominium unit) and the buyer, or a close family member, intends to live in the unit, the seller may give the tenant an N12 notice once a binding agreement of purchase and sale is in place, with at least 60 days' notice ending at the end of a rental period and compensation of one month's rent. Tenants are entitled to challenge the notice at the Landlord and Tenant Board.
You may show the unit to prospective buyers with 24 hours' written notice, between 8 a.m. and 8 p.m.
This information is general and educational. It is not legal, tax, accounting or investment advice, and rules change. Confirm requirements with the relevant authority or a qualified professional before acting.
