A vacant-possession offer typically includes a condition tied to the tenant actually vacating, so if the tenant does not leave on schedule, the closing date usually needs to move rather than proceed on the original timeline, and the buyer's lawyer will confirm vacancy before releasing funds.
The safer structure for a tenanted sale is marketing to a buyer who wants the tenant in place, since the Residential Tenancies Act, 2006 carries an existing lease over to a new owner automatically, which sidesteps the vacancy question altogether.
Joel Dyck flags this risk before an offer is written, not after a tenant misses a move-out date. Get your hand-reviewed valuation from Joel Dyck.