New Landlords - LandlordOb - Disputes - Laws for Landlords in Alberta

If the Property is Rented (New Landlords)

If you buy property that is already rented to a tenant for less than three years, you take on all the rights and obligations of the previous landlord.

For example, John owns a house that he has rented to Bob on a monthly rental basis. If John sells the house to you while Bob is still a tenant, you become the new landlord. You step into John’s shoes as far as your obligations to Bob and the rights you now have as a landlord.

If the lease is for a term longer than three years, a tenant must have filed a caveat on the certificate of title (ownership) to the land in order for the lease to be recognized by you as the new owner of the land. If a caveat was not filed, but you accept rent from the tenant, you may be taken to have confirmed the tenancy. This would not apply to most periodic tenancies, which are commonly on a weekly, monthly or annual basis.

Under the new owner and landlord, the terms of the agreement will determine how tenants are protected regarding matters that that are not covered by the Residential Tenancies Act. Similarly, if the agreement is one to which the Act does not apply, tenant protection will depend upon the terms of the agreement.

For example, a fixed-term lease for two years might give an option to renew the lease at the end of two years, but only as long as the original landlord and tenant remain the same.

Duties of New Landlord

When you acquire property that is rented out and is within the terms of the Residential Tenancies Act, you must:

Serve a new Notice of Landlord on the tenant, either personally or by posting it in common areas in a large building.
Serve the tenant with a statement of the amount of security deposit and interest relating to their tenancy as of the date you acquired the property.

Those notices must be served within a reasonable time of buying the premises. A tenant cannot be charged for any expenses relating to the notices.

January 2006