Seller Tips

Can I Sell My House With Tenants in It in Alberta?

The Direct Answer

Yes, you can sell a home that has tenants in it, but a sale does not automatically end the tenancy, and what you can do depends on the type of lease. Under Alberta's Residential Tenancies Act, a sale is not a reason to end a fixed-term lease early. For a periodic tenancy, such as month-to-month, the landlord can end it in connection with a sale, but only in specific situations, with proper written notice, and after the buyer asks for it. That timing is what catches most sellers off guard.

If the Tenant Has a Fixed-Term Lease

A fixed-term lease runs until the end date in the agreement. According to the Government of Alberta, a sale is not listed as a reason to end a fixed term early, and ending it early requires both sides to agree. In practice, that usually means one of two paths: sell the home with the tenant in place and let the buyer take over the existing arrangement, or wait until the lease ends. Buyers who are investors may welcome a tenant who is already paying rent. Buyers who want to move in will need to plan around the lease end date, so tell your realtor about the lease terms early.

If the Tenancy Is Month-to-Month or Another Periodic Tenancy

The Government of Alberta lists two sale-related reasons a landlord can end a periodic tenancy. In both cases, you must have agreed to sell, the conditions in the sale agreement must be met or waived, and the buyer must ask you in writing to give the tenant a notice to end the tenancy.

• The buyer or a relative of the buyer wants to move in.
• The home is a detached house, a semi-detached house, or a single condominium unit. In this case, neither the buyer nor their relatives have to move in.

The notice must be in writing and include the address, the date the tenancy will end, your signature, and the reason. The length of notice depends on the tenancy:

If a notice is late, the tenancy ends later than you planned. For weekly and monthly tenancies, it ends on the last day of the next complete week or month, and for yearly tenancies it takes effect 90 days after the notice is served.

Why Timing Matters So Much

Because the notice can only be given after the sale conditions are met or waived and the buyer has asked for it, a monthly tenant's three months of notice starts late in the process. A deal that needs the home empty can therefore take much longer to close than a typical sale. That is worth understanding up front, and it is one reason closing timelines vary so much. If your buyer needs vacant possession, build the notice period into the possession date from the start, or the deal can run into trouble.

Showings, and a Word on Rooms Rented Separately

The Residential Tenancies Act also sets rules for entering a tenant's home, including notice, so confirm the requirements before you book showings, and keep your tenant informed. If you rent rooms in the home individually, there is another layer to check. Edmonton recently changed its rules for homes where three or more rooms are rented separately, which I cover in the lodging house rule changes. A buyer, lender, or lawyer may ask whether your setup is permitted, so it is worth sorting out before you list. This is general information, not legal advice, so please check the Government of Alberta's ending a tenancy page and speak with a lawyer about your specific situation.

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Jason Beattie

REALTOR® | eXp Realty | BT Group

780-791-9633  |  Jason.Beattie@eXpRealty.com