N12 Form Ontario — Personal Use Eviction

The N12 — Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit is one of the most legally sensitive eviction notices in Ontario. It allows a landlord to terminate a tenancy when they or a qualifying person genuinely needs the rental unit for personal residential occupation. The N12 has become increasingly scrutinized by the Landlord and Tenant Board due to a rise in bad faith evictions across the province.

The N12 process has strict requirements under the Residential Tenancies Act, 2006, including mandatory compensation of one month's rent, a 60-day notice period, and a good faith obligation that carries penalties of up to $50,000 for individuals and $250,000 for corporations. Ontario Eviction Services ensures every N12 is properly prepared, compliant, and defensible at the LTB hearing.

N12 Costs, Compensation, and Penalties

The following table provides a complete breakdown of costs, compensation requirements, and potential penalties associated with the N12 eviction process:

Who Qualifies for an N12 Personal Use Eviction?

An N12 notice can only be served if one of the following people genuinely requires the rental unit for residential occupation. The RTA limits the qualifying persons to:

• The landlord — The person or entity listed as the landlord on the lease
• The landlord's spouse — Including common-law and same-sex spouses
• A child or parent of the landlord or the landlord's spouse — Does not extend to siblings, aunts, uncles, or cousins
• A caregiver — A person who provides or will provide care services to the landlord, spouse, child, or parent
• A purchaser — An individual (not a corporation) who has entered into an agreement of purchase and sale for the property

The person named on the N12 must genuinely intend to move into the unit and occupy it as their primary residence for at least one year. Serving an N12 without genuine intent constitutes a bad faith eviction and exposes the landlord to significant penalties.

N12 Notice Period and Requirements

The N12 requires a minimum of 60 days' notice. The termination date must fall on the last day of a rental period. For most monthly tenancies where rent is due on the first, the termination date must be on the last day of a month. For example, if rent is due on the first of the month and the notice is served on January 15, the earliest termination date would be March 31 (the last day of the rental period that is at least 60 days away).

Mandatory Compensation — Section 48.1 of the RTA

The landlord must compensate the tenant with the equivalent of one month's rent before the termination date on the N12. Under section 48.1 of the RTA, this compensation can be provided by:

• Paying the tenant one month's rent directly (cheque, e-transfer, or cash with a receipt)
• Crediting one month's rent against the tenant's last month's rent deposit
• Offering the tenant another acceptable rental unit owned by the landlord

Filing the L2 Application After Serving the N12

If the tenant does not vacate by the termination date on the N12, the landlord must file an L2 application with the LTB. The L2 application requests an order terminating the tenancy and evicting the tenant. The filing fee is $208.

At the hearing, the landlord must demonstrate:

• The N12 was properly served with the correct 60-day notice period and a termination date on the last day of a rental period
• The one month's rent compensation was paid before the termination date, with proof of payment
• The person named on the N12 genuinely intends to occupy the unit as their primary residence
• The application is made in good faith — the landlord is not using the N12 as a pretext to re-rent at a higher price or for any other improper purpose

Evidence supporting good faith may include:

• A signed affidavit or declaration from the intended occupant stating they will move in
• Proof of sale of the occupant's current home
• School enrollment records for children (if the family member is relocating)
• Employment records showing the occupant works near the rental unit
• Moving company quotes or rental agreements for the occupant's current residence

Good Faith and Bad Faith N12 Evictions

The LTB takes bad faith N12 evictions very seriously. Ontario has seen a significant increase in N12 complaints, with many tenants alleging that landlords use N12 notices as a pretext to remove tenants paying below-market rent and re-list the unit at a higher price. The Board scrutinizes every N12 application for evidence of bad faith.

Signs of a Bad Faith N12

The LTB may find bad faith if:

• The unit is re-listed for rent shortly after the tenant vacates
• The named person does not actually move into the unit
• The landlord has served N12 notices on multiple units in the same building
• The landlord has a pattern of serving N12 notices and then re-renting at higher prices
• The landlord cannot provide evidence that the named person genuinely needs the unit

Penalties for Bad Faith N12 Evictions

If a tenant files a T5 application within one year of vacating and the LTB determines the N12 was served in bad faith, the landlord may be ordered to pay:

• Up to 12 months' rent in compensation to the former tenant
• The tenant's reasonable moving and storage expenses
• The difference in rent between the old and new units for up to one year
• An administrative fine of up to $50,000 for an individual landlord
• An administrative fine of up to $250,000 for a corporation

These penalties are substantial and underscore the importance of only serving an N12 when the personal use requirement is genuine. Ontario Eviction Services advises landlords on whether an N12 is appropriate for their situation and helps build a strong good faith case for the hearing.

N12 for Purchaser's Own Use

When a property is sold, the purchaser can request that the landlord serve an N12 if the purchaser (an individual, not a corporation) genuinely intends to occupy the unit as their primary residence. The same rules apply — 60 days' notice, one month's compensation, termination date on the last day of a rental period, and good faith.

The agreement of purchase and sale typically specifies vacant possession as a condition of closing. The N12 is the mechanism to achieve vacant possession. Important considerations for purchaser N12s:

• The purchaser must be a natural person, not a corporation. If a numbered company or holding company is purchasing the property, the N12 for purchaser's own use cannot be used.
• The purchaser must sign an affidavit stating their genuine intention to occupy the unit.
• The landlord (seller) is responsible for serving the N12 and paying the one month's rent compensation, not the purchaser — though the purchase agreement often addresses who bears this cost.
• The landlord should coordinate the termination date with the closing date to avoid a gap where the tenant has vacated but the sale has not closed.

Tenant's Right to Challenge an N12

Tenants have the right to dispute an N12 at the LTB hearing. Common tenant defences include:

• The landlord does not genuinely intend for the named person to occupy the unit (bad faith)
• The compensation was not paid before the termination date
• The notice period was less than 60 days
• The termination date does not fall on the last day of a rental period
• The named person does not qualify under section 48 of the RTA
• Section 83 relief — the tenant argues that the eviction would be unfair given their circumstances

The LTB adjudicator weighs the evidence from both sides and makes a determination. Having strong evidence of good faith — including affidavits, proof of the occupant's current living situation, and documentation of their connection to the area — significantly strengthens the landlord's case.

Learn more about the full eviction process, how property managers handle N12 evictions, or how to handle tenant disputes that may arise during the N12 process. For landlords in the GTA, we serve Toronto, Mississauga, Brampton, and surrounding areas.

Frequently Asked Questions