The N12 is one of the most misunderstood notices in Ontario landlord-tenant law — and one of the most frequently misused. Realtors who advise clients to serve an N12 without understanding the legal requirements are creating serious risk. Here is what you need to know before any N12 advice is given.
The N12 Requires Genuine Intention
The N12 — whether for owner’s use, family member’s use, or purchaser’s use — requires a genuine, good-faith intention to use the property. It cannot be served as a tactic to remove a tenant for other reasons. The LTB takes bad faith seriously, and a tenant who successfully establishes bad faith can receive up to 12 months rent as compensation.
The Purchaser Must Be an Individual
The purchaser’s own use ground only applies when the purchaser is a natural person — not a corporation, not a numbered company. Realtors who advise corporate buyers that they can serve an N12 to obtain vacant possession are wrong. The N12 is simply not available in this scenario.
Compensation Is Mandatory
An N12 requires payment of one month’s compensation to the tenant. This is not optional — it is a legal requirement under the RTA. The compensation must be paid on or before the termination date. If it is not, the notice may be void.
The Tenant Can Dispute the N12
A tenant who receives an N12 can file a dispute with the LTB. This schedules a hearing at which the landlord or purchaser must prove genuine intention. During the period between the dispute and the hearing, the tenant remains in possession. This can push the timeline well past a planned closing date.
This Is Legal Advice — Refer to a Paralegal
Advising a client on whether, when, and how to serve an N12 is legal advice. Realtors are not licensed to give it. Connect your client with a paralegal before the N12 is served — or before the APS is signed if the vendor plans to serve one.
What Comes Next
Stonegate advises landlords and realtors on N12 strategy and tenant removal in property sales. Book a free call at https://calendly.com/stonegatelegalservices/20min.
▶ Watch: Top 5 Realtor Mistakes When Selling Tenanted Properties in Ontario
Ready to talk to a landlord paralegal?
Stonegate Legal Services handles landlord-only matters across Ontario. Flat fee. Free discovery call.
