What Is an N12 Notice?

An N12 Notice, officially titled Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit, is one of several notices that may be used to end a residential tenancy in Ontario.

Unlike notices based on unpaid rent or tenant misconduct, an N12 Notice is based on the intended use of the rental unit by the landlord, purchaser, or another eligible person. It is intended for situations where the property will be occupied as a residence rather than rented to another tenant.

Serving an N12 Notice does not automatically require the tenant to move out. If the tenant does not leave voluntarily, the landlord must usually apply to the Landlord and Tenant Board for an eviction order.

When Can a Landlord Serve an N12 Notice?

An N12 Notice may be appropriate in situations where:

• The landlord intends to move into the rental unit.

• The landlord's spouse intends to move into the rental unit.

• The landlord's child or parent intends to occupy the rental unit.

• A caregiver for the landlord or an eligible family member will reside in the unit.

• A purchaser of the property, or an eligible family member of the purchaser, intends to occupy the rental unit after the sale has closed.

The intended occupant must genuinely plan to use the rental unit as their residence. The Landlord and Tenant Board may consider whether the notice was served in good faith if the matter proceeds to a hearing.

What Are the Requirements for a Valid N12 Notice?

To be legally effective, an N12 Notice must satisfy several requirements under the Residential Tenancies Act.

Generally, landlords should ensure that:

• the correct approved LTB form is used;

• the required notice period is provided;

• the termination date complies with the legislation;

• any required compensation is paid on time; and

• the notice is served in accordance with the applicable rules.

Errors in preparing or serving an N12 Notice may result in delays or require the process to begin again.

Is Compensation Required?

In most cases, a landlord serving an N12 Notice must compensate the tenant.

Compensation is generally equal to one month's rent, or the landlord may offer another rental unit that is acceptable under the legislation.

The required compensation must usually be provided before the termination date specified in the notice. Failure to comply with this requirement may affect the landlord's application before the Landlord and Tenant Board.

What Happens After Serving an N12 Notice?

After receiving an N12 Notice, a tenant may choose to move out by the termination date or remain in the rental unit.

If the tenant does not vacate voluntarily, the landlord cannot simply change the locks or remove the tenant from the property. Instead, the landlord will generally need to file an L2 Application with the Landlord and Tenant Board and attend a hearing if one is scheduled.

At the hearing, the Board may consider whether:

• the notice was properly completed and served;

• the legal requirements have been met;

• compensation was provided where required; and

• the landlord intends to occupy the unit in good faith.

Only the Landlord and Tenant Board can issue an eviction order.

What Does "Good Faith" Mean?

An N12 Notice must be served in good faith.

Generally, this means the person identified in the notice genuinely intends to occupy the rental unit as their residence. If the Board determines that the notice was not given in good faith, the landlord's application may be dismissed.

Each case is decided based on its own facts and evidence.

Can a Tenant Challenge an N12 Notice?

Yes. A tenant may dispute an N12 Notice before the Landlord and Tenant Board.

For example, a tenant may argue that:

• the notice was not properly completed or served;

• compensation was not paid as required;

• the landlord does not genuinely intend to occupy the unit; or

• other legal requirements have not been satisfied.

The Board will consider the evidence presented by both parties before making a decision.

Common Mistakes Landlords Make

Serving an N12 Notice involves more than completing a form.

Common mistakes include:

• using the wrong notice;

• calculating an incorrect termination date;

• failing to pay the required compensation;

• assuming the notice automatically ends the tenancy;

• attempting to evict a tenant without an LTB order; and

• overlooking the requirement to establish good faith if the matter proceeds to a hearing.

Understanding the legal requirements before serving an N12 Notice may help avoid unnecessary delays.