Bad Faith N12 Applications: How the LTB Detects Them
A bad-faith N12 is one where the stated reason wasn’t genuine. Since September 21, 2026, the law presumes bad faith in more situations, and landlords must prove otherwise. Here is how the LTB looks at it and how to protect a genuine N12.
Key points
- A former tenant can file a T5 within one year of moving out.
- Since September 21, 2026, bad faith is presumed for own-use N12s if the named person doesn’t move in within 60 days.
- Re-renting, listing for sale, demolishing or converting within a year also triggers the presumption.
- Remedies include up to 12 months’ rent in compensation, plus rent differences, moving costs and fines.
The LTB doesn’t ask whether your plan is sensible. It asks whether the intention to move in is genuine. Your motives matter less than whether the person named actually intends to live there, and the Board can look at what you did after the notice as well as before.
What bad faith means
A former tenant can file a T5 if they moved out because of an N12, the person named didn’t move in within a reasonable time, and the landlord never genuinely intended them to. A T5 must be filed within one year of moving out. The Board can find bad faith in a T5 even if it earlier granted the eviction.
The new presumptions
For own-use N12s, bad faith is presumed, unless you prove otherwise, if:
- The person named didn’t move in within 60 days after the termination date, or within 60 days after the tenant left if they left later.
- Between the notice and one year after the tenant left, you advertised the unit for rent, signed a lease with someone else, advertised the unit or building for sale, demolished it, or took steps to convert it to non-residential use.
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- Whether the person moved in, when, and for how long.
- Ads, new leases or listings for the unit.
- Earlier N12s for other units that were later re-rented.
- Prior conflict with the tenant.
- Part-time or occasional use, which doesn’t count as residential occupation.
Your L2 must also list every N12 or N13 you gave any tenant in the two years before filing.
What it can cost
| Remedy | Limit |
|---|---|
| Rent differential | Up to one year after the tenant moved out |
| Moving and storage costs | Reasonable out-of-pocket costs |
| Rent abatement | Usually from the notice to move-out |
| General compensation | Up to 12 months’ rent |
| Administrative fine | Up to the Small Claims Court limit |
The Board can also let the tenant move back in if the unit hasn’t been re-rented, and order any unpaid N12 compensation.
Protecting a genuine N12
- Make sure the person moving in is an eligible family member or caregiver.
- Have them move in within 60 days and stay at least a year.
- Keep proof: change-of-address records, utility accounts, ID and move-in records.
- Don’t advertise, list or re-rent the unit within a year of the tenant leaving.
- Keep records of any change in plans and why it happened.
Frequently asked questions
How long does a tenant have to file a bad-faith claim?
One year after moving out, for N12 bad-faith T5 applications.
What is the 60-day rule?
Since September 21, 2026, for own-use N12s, bad faith is presumed if the named person doesn’t move in within 60 days of the termination date or the tenant’s move-out, whichever applies.
Can I sell the property after an own-use N12?
Advertising it for sale within a year of the tenant leaving triggers a presumption of bad faith. You would have to prove your intention was genuine.
How much can a bad-faith finding cost?
Up to 12 months’ rent in general compensation, plus rent differences, moving costs, abatement and an administrative fine.
Does the 60-day presumption apply to purchaser N12s?
No. It applies to N12s for the landlord’s own or family use. Purchaser N12s are still judged on whether the purchaser moved in within a reasonable time.
About Bita Di Lisi
Bita is the lead paralegal at Stonegate Legal Services and is licensed by the Law Society of Ontario. She represents Ontario landlords at the Landlord and Tenant Board and teaches landlords and investors about notices, LTB timelines and the mistakes that cost months.
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