N12 vs Cash for Keys: Which Gets You Vacant Possession Faster?
When you need a tenant out to move in, sell or renovate, there are two main routes: an N12 through the LTB, or a negotiated cash-for-keys deal. Here is how each works, what each costs, and how the 2026 changes shift the math.
Key points
- An N12 needs at least 60 days’ notice and a genuine intention to move in.
- Since September 21, 2026, 120 days’ notice for own or family use removes the one-month compensation. Purchaser N12s still require it.
- Cash-for-keys is a private deal, usually recorded with an N11, with no hearing needed.
- Many landlords serve the N12 and negotiate at the same time.
Both routes can get you vacant possession. The right choice depends on the tenant, your timeline, and whether the person moving in can prove a genuine intention to live there.
The N12 route
An N12 is for when you, your spouse, your or your spouse’s child or parent, a caregiver, or a purchaser’s family needs the unit. The termination date must be at least 60 days after service and on the last day of a rental period. With less than 120 days’ notice, you must pay one month’s rent or offer another acceptable unit by the termination date. If the tenant stays, you file an L2 and wait for a hearing.
Risks of the N12 route
If a former tenant later proves the N12 was in bad faith, the Board can order rent differences for up to a year, moving costs, general compensation of up to 12 months’ rent, and an administrative fine. Since September 21, 2026, bad faith is presumed for own-use N12s if the person named doesn’t move in within 60 days of the termination date, or if the unit is re-rented, listed for sale or converted within a year of the tenant leaving. See bad-faith N12s.
Weighing an N12 against a buyout? We’ll help you decide. Book a free 20-minute call.
Book a free 20-minute call →The cash-for-keys route
Cash-for-keys is a negotiated agreement: the tenant moves out by a set date in exchange for a payment. There is no set amount; it is whatever both sides agree to. Record it with a signed N11 so you can apply to the LTB quickly with an L3 if the tenant doesn’t leave. Pay part on signing, if needed, and the rest when you get the keys.
Side by side
| N12 | Cash-for-keys (N11) | |
|---|---|---|
| Minimum timeline | 60 days’ notice, plus a hearing if contested | Whatever date you agree |
| Cost | One month’s rent, unless 120+ days’ own-use notice | The agreed payment |
| Must prove intention to move in | Yes | No |
| Bad-faith exposure | Yes | Lower, if the deal is voluntary |
| If the tenant stays | L2 application and hearing | L3 application |
Which to choose
- Cooperative tenant and a tight deadline: cash-for-keys is often faster.
- Uncooperative tenant or an unreasonable ask: the N12 may be necessary.
- You can wait 120 days for your own use: the N12 costs less than before.
- Never pressure a tenant to sign. A pressured agreement can be challenged.
Frequently asked questions
Is cash-for-keys faster than an N12?
Often, when the tenant cooperates, because there is no hearing. If the tenant won’t agree, the N12 may be the only route.
Do I still pay one month’s rent with an N12?
Not if it is for your own or family use, served on or after September 21, 2026, with at least 120 days’ notice. Otherwise, yes.
How much is a typical cash-for-keys payment?
There is no set amount. It depends on the rent, the tenant’s situation and how long an LTB case would take.
What if the tenant takes the money and stays?
With a signed N11, you can apply to the LTB with an L3. Paying the balance at move-out protects you.
Can I do both?
Yes. Many landlords serve a valid N12 and negotiate a move-out at the same time.
About Robert Di Lisi
Robert is a paralegal licensed by the Law Society of Ontario and co-founder of Stonegate Legal Services, a landlord-only firm. He leads client intake and speaks at landlord seminars across the GTA. Like the rest of the team, he is a landlord himself.
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