The tenancy comes with the house
This surprises buyers every year. A tenancy does not end because the property changed hands — on possession you step into the landlord's position under the existing agreement. A fixed-term lease generally runs to its end date. A month-to-month arrangement continues until it is properly ended, and ending one requires the correct written notice under Alberta's Residential Tenancies Act. Confirm the current notice requirements, or get advice, before you build a plan around a date.
The security deposit and the interest owing on it also have to be accounted for at closing. Make sure your lawyer knows there is a tenant.
What to ask for before you waive conditions
- The written lease — term, rent, what is included, and who pays which utility.
- Proof of the deposit held and the move-in inspection report.
- Rent history — whether it is current, and how far below market the rent sits. A long-standing tenant is often paying meaningfully less than a new one would.
- The suite's legal status, verified with the City rather than taken from the listing. This is separate from the tenancy and matters just as much.
- Access for your inspection. Tenants have to be given proper notice, so build that into your condition period rather than discovering it on day one.
Two things are being sold here: a property and a contract. Buyers read the property carefully and the contract not at all.
Planning possession
If you intend to live in the suite yourself, or to renovate it, that intention has to be reconciled with the tenancy well before you write the offer — not negotiated afterwards. If you intend to keep the tenant, introduce yourself early and get the arrangement onto your own paperwork.
See also: Calgary suited homes → and how lenders treat suite income →.