Update — Ontario Legislation Has Changed
The Next Chapter: “I’m Not Ready to Leave Yet”
Since publishing my original post about N12 notices and tenant compensation, Ontario has introduced updates through Bill 60 that reinforce the responsibilities of landlords when reclaiming a rental unit for personal or family use.
If you have not read the original explanation of how the N12 process works, you can find it here:
Attention all Tenants! blogBelow is a quick overview of what landlords should understand about the current rules.
Important Update for Ontario Landlords: N12 Compensation Rules
If you are a landlord in Ontario and are considering moving into your rental property yourself, or allowing an immediate family member to live there, it is important to understand how the N12 notice process works under the Residential Tenancies Act.
While the general framework has been in place for some time, recent legislative updates through Bill 60 reinforce the obligations placed on landlords when ending a tenancy for personal or family occupancy.
When Can a Landlord Use an N12 Notice?
An N12 notice allows a landlord to terminate a tenancy when the rental unit is required for:
• The landlord
• The landlord’s spouse
• A child or parent of the landlord
• A child or parent of the landlord’s spouse
However, the key requirement is that the landlord must have a genuine intention to occupy the property.
This is known as acting in good faith.
Tenant Compensation Is Still Required
When issuing an N12 notice, the landlord must provide the tenant with one month’s rent as compensation, or offer another acceptable rental unit.
This compensation must be provided before the termination date listed on the notice.
Failure to provide the compensation can invalidate the notice.
Bill 60 Reinforces Consequences for Bad Faith Evictions
One of the key purposes of Bill 60 is to reinforce the protections available to tenants when landlords misuse the N12 process.
If a landlord issues an N12 notice but does not actually move into the property as stated, the tenant may apply to the Landlord and Tenant Board claiming the eviction was done in bad faith.
If the Board finds the notice was not given in good faith, the landlord may be ordered to pay compensation that can include:
• Moving expenses
• Rent differences
• Additional financial damages
These cases can become expensive and time-consuming for landlords.
Why This Matters Before Serving Notice
Before serving an N12 notice, landlords should ensure that:
• The intended occupant genuinely plans to live in the property
• Compensation is paid properly and on time
• The notice period requirements are followed
• Documentation is kept confirming the reason for the notice
Taking the time to understand the process ahead of time can help avoid disputes later.
Selling a Tenanted Property?
Many landlords are surprised to learn how the N12 process works when they are planning to sell or move back into their property.
If you are considering selling a property with tenants in place, or navigating the notice process, it is worth having a conversation before taking the next step.
Every situation is different, and the right approach can make the process significantly smoother.
Feel free to reach out if you have questions about selling a tenanted property in Durham Region.