Mortgagee can become landlord in law
Under section 47 of the Mortgages Act, a mortgagee in possession or a person obtaining title by foreclosure or power of sale is deemed to be the landlord under the tenancy agreement.
Section 48 further states that possession from the mortgagor's tenant must be obtained in accordance with the Residential Tenancies Act, 2006.
Purchaser-use terminations have formal requirements
Under the RTA, notice under sections 48/49 generally requires at least 60 days and proper timing to the end of a rental period or fixed term (sections 48(2) and 49(3)).
Section 49.1 requires one month compensation (or acceptable alternative rental unit) in purchaser-use scenarios covered by that section.
Bad-faith notices create tenant remedies
Section 57 of the RTA gives former tenants a path for relief where section 48/49/50 notices were given in bad faith. The Board can order compensation and other remedies.
Professional guidance to tenants should focus on records: lease, rent receipts, notices received, and immediate filing timelines where needed.
Frequently Asked Questions
Can a bank evict a tenant just because the mortgage defaulted?
Not automatically. Ontario law requires tenancy termination and eviction to proceed through applicable Residential Tenancies Act mechanisms.
How much notice does a purchaser-use termination usually require?
For section 48 or 49 notices, the statute generally requires at least 60 days, with the date aligned to tenancy-period rules.
Is compensation required on purchaser notices?
Section 49.1 includes a one-month compensation framework in covered purchaser-notice cases.
Sources
Legal Notice
This publication is general information only and is not legal advice. Obtain Ontario legal advice for your specific mortgage, tenancy, and litigation facts.