The N12 is one of the most significant forms in Ontario’s residential tenancy framework. It is the only official document used to end a tenancy when the primary reason is that the property is genuinely required for personal occupation by the owner, a purchaser, or their immediate family.
Receiving or issuing this document initiates a legal process with strict requirements. Here is a breakdown of the N12 form—officially titled “Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit.”
When is the N12 Form Used?
The N12 is used exclusively for what the Residential Tenancies Act (RTA) defines as “Own Use.” The two permissible scenarios are:
- Owner’s Own Use: The current owner, or a defined member of their immediate family (spouse, child, parent, or a caregiver for one of these individuals), intends to move into the rental unit.
- Purchaser’s Own Use: The property has been sold, and the new purchaser, or a defined member of their immediate family, intends to move in. This is generally limited to properties with three or fewer residential units.
In both cases, the individual moving in must genuinely intend to occupy the unit as their primary residence for a minimum of one year.
The Required Steps and Timelines
The N12 is a legal notice, not an eviction order. It must be filled out perfectly and served correctly to be considered valid.
1. The Notice Period (The 60-Day Minimum)
A party giving the notice must provide the other party with at least 60 days’ written notice. This termination date must align with the tenancy schedule:
- Month-to-Month Tenancy: The termination date must be the last day of a rental period (e.g., if rent is due on the 1st, the termination date must be the 30th or 31st).
- Fixed-Term Lease: The termination date cannot be earlier than the last day of the fixed-term lease.
The official N12 form can be found on the LTB website: Notice to End your Tenancy (N12)
2. The Compensation Requirement
A critical requirement of the N12 for own use is mandatory compensation. The person issuing the notice must:
- Pay the other party an amount equal to one month’s rent; OR
- Offer the other party an acceptable alternate rental unit, if one is available.
This payment must be made on or before the termination date specified in the notice.
3. Early Termination Option
If a party receives a valid N12, they have the legal right to choose to move out earlier than the date specified on the notice. They can terminate the tenancy by giving at least 10 days’ written notice using the appropriate N9 form.
The Good Faith Requirement: What is “Bad Faith”?
The law requires that an N12 notice be given in “good faith.” This means the stated intention of requiring the unit for personal occupation must be genuine. The process cannot be used as a pretense to evict a current occupant solely to:
- Re-rent the unit at a higher price.
- Get possession for reasons other than the legal “own use” definition.
If a party suspects the notice was given in bad faith, they can choose not to move out. If they do not move out, the person who issued the notice must then apply to the Landlord and Tenant Board (LTB) using a Form L2 (Application to End a Tenancy and Evict a Tenant) to obtain a hearing and an eviction order. The LTB will then determine if the good faith requirement has been met.
The Consequences of Bad Faith
If the occupant moves out and later discovers that the unit was not used for the intended purpose (e.g., it was re-rented within one year at a higher rate), they have the right to file an application (a T5 application) with the LTB for compensation.
The LTB can order the party who gave the notice to pay a substantial fine and/or pay the former occupant the following:
- Up to 12 months of the former rent.
- The difference in rent for the next year if the new unit is more expensive.
- Moving, storage, and other related expenses.
The N12 is a formal tool that carries significant weight and responsibility under Ontario law. Adherence to the strict rules regarding notice periods, compensation, and genuine intent is essential for a legally sound process.
