Selling · Plex · 2026
Tenants do not block the sale, but they set part of the price. Here is what the buyer takes over, what they will ask you for, how to price on income, and the tax to plan on the rented part.
Selling an occupied plex is prepared on three fronts: the tenants, the documents and the price. Leases follow the building: the buyer takes over the tenants, their rents and their renewal dates, and can neither raise them beyond the TAL nor evict them, except a good-faith repossession to live there with six months' notice. Showings are a seller's right, with 24 hours' notice to the tenant, between 9 a.m. and 9 p.m., and the tenant may be present; a cooperative tenant sells faster, hence the value of informing them from the start and grouping showings. The documents any serious buyer and their lender ask for: current leases with section G filled in, modification notices and replies for the last three years, bank statements of rents for the last twelve months, the 2026 tax bill, the insurance policy, invoices for major work (with their TAL impact), an up-to-date certificate of location and, where applicable, the declaration of co-ownership or servitudes. The price is set on net income and comparable plex sales in the sector (median $874,000 in the Montreal area in the second quarter of 2026, $810,000 on the South Shore in July), not on "potential" rents: a low-rent plex sells at a discount the TAL justifies, and a vacant unit at sale earns a premium. At resale, the capital gain on the rented part is taxable, capital cost allowance claimed is recaptured as income, and only the part occupied by the seller benefits from the principal residence exemption.
| Item | Rule | Effect on price |
|---|---|---|
| Current leases | Transferred by law to the buyer, same rents, same terms; the tenant cannot be evicted because of the sale | Rents below market = discount; vacant unit = premium |
| Rent increases | At the TAL's pace (3.1% base in 2026) unless clause F (building 5 years old or less) | A buyer prices the catch-up time |
| Repossession | Possible for a buyer who wants to live there, 6 months' notice before the end of the lease, good faith, except protected tenant (65, 10 years, modest income) | A "repossessable" plex sells better to owner-occupants, the majority in 2026 |
| Deposits and rents received in advance | Adjusted at the notary pro rata | Neutral |
| TAL disputes, unpaid rents | To be disclosed; the buyer can require settlement before the deed | Negative if discovered afterwards |
The Civil Code lets the seller show the unit with 24 hours' verbal or written notice, between 9 a.m. and 9 p.m.; the tenant may require to be present and cannot refuse without a serious reason, but has no obligation to tidy up or smile. What works: meet each tenant before listing, explain that the lease is protected, propose a grouped showing schedule (two slots a week), and sometimes a modest compensation for the disruption. A tenant considering leaving can sign a fixed-date departure agreement, creating the vacant unit buyers pay the most for, provided it is freely given and documented.
Price: actual net operating income (lease rents minus taxes, insurance, maintenance) capitalized at the sector's rate, cross-checked with comparable plex sales of the last twelve months and the building's condition (roof, brick, windows, electrical, drain); a pre-listing inspection avoids renegotiation. Tax: on the rented part, capital gain taxable at 50% (the cost includes the welcome tax and acquisition costs, plus improvements) and recapture of capital cost allowance claimed, taxed at 100%; on the unit occupied by the seller, principal residence exemption prorated by years and area; no notice of disposition required unless non-resident. Commission and selling costs are deductible from proceeds. See the cost of selling and the return calculation the buyer will do.
Week 1: documents, pre-listing inspection, tenant meetings, valuation on income and comparables. Weeks 2 to 6: listing, grouped showings, offer (often with lease-review and inspection conditions, 10 to 15 days). Weeks 7 to 14: buyer's financing (longer than a house, the appraiser reviews the rents), notary, rent and deposit adjustments, notice to tenants of the change of owner and new payment details. Median days on market for a plex in the Montreal area: 43 in the second quarter of 2026.
Yes; leases are transferred to the buyer, who takes over rents and terms. The tenant cannot be evicted because the building is sold.
No, with 24 hours' notice between 9 a.m. and 9 p.m.; they may require to be present.
On actual net income capitalized at the sector's rate and on comparable sales, accounting for below-market rents and the building's condition.
Capital gain taxable at 50% on the rented part and recapture of CCA claimed; principal residence exemption on the seller's unit only.
The plex file: plex forecasts 2027 (French), welcome tax on a plex (French) and the RénoPlex grant.
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Also available in French: version française de ce guide.
Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.
Équipe no 1 de RE/MAX Platine en 2024 et en 2025, 6e au Québec, 15e au Canada et dans le top 50 mondial au classement officiel RE/MAX. Réponse en moins de 24 heures, sept jours sur sept.