What is a Form N12?
A form N12, or “Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit” is a form a landlord or their representative can give to their tenant as a notice of eviction in Ontario.
A landlord who gives their tenant a form N12 must pay the tenant one month’s rent as compensation or offer the tenant an acceptable alternative unit to rent. They must also give their tenant 60 days written notice to the end of the term (the last day of the rental period).
This blog post will summarize what Ontario renters should know about form N12s. We will cover who is legally authorized to issue a form N12 and in what circumstances, how to demonstrate good faith, what constitutes bad faith legally, and three common scenarios for renters receiving a form N12 notice of eviction. We encourage you to read our longer tip guide available in English for more information.
When can a landlord give a form N12 to their tenant?
Your landlord is not allowed to just kick you out of your home whenever they like. Your landlord can only evict you based on a form N12 if any of the following people need the unit to live in:
- Your landlord or the purchaser.
- Certain close members of your landlord’s or the purchaser’s family. They include only the landlord or purchaser’s spouse, the landlord’s or purchaser’s children or the spouse’s children, the landlord’s or purchaser’s parents or the spouse’s parents.
- A caregiver. In other words, a person who takes care of your landlord or purchaser, or of a close member of your landlord’s or purchaser’s family who also lives in the building, building complex, mobile home park, or land lease community where the rental unit is located.
Not all landlords are legally allowed to use this form to start the process of eviction. The landlord must be an individual and the place you rent must be owned at least in part by an individual. This means a corporate landlord with investor owners cannot legally use a form N12 to evict a tenant.
It’s important to note: even if your landlord is selling your unit that is not legal grounds for eviction. The landlord or the new purchaser must prove that they intend to occupy the unit. If your landlord wants to end your tenancy for this reason, your landlord and the purchaser must have signed a purchase and sale agreement before they serve the N12.
A landlord who gives their tenant a form N12 is starting a process of eviction. This means receiving a form N12 does not automatically mean you are evicted. If you do not voluntarily move out, a landlord must still apply to the Landlord and Tenant Board (LTB) to legally evict you.
There are many steps the landlord must follow once they give you a form N12 and they must also prove good faith to the LTB. As a renter, you also have the right to an LTB hearing about the eviction.
What does “good faith” mean with form N12s?
This is where the idea of good faith becomes very important. When a landlord rents a unit to someone, they are granting legal possession of the unit to that person. Legally, that unit is now the renter’s home, and the law protects their right to it from unlawful eviction. In other words, a landlord cannot just do whatever they want, whenever they want. There are legal processes they are expected to follow.
If, within that period of 12 months, a landlord or purchaser engages in any of the following actions, it may be considered “bad faith”:
- advertises your place for rent;
- advertises your place or your building for sale;
- rents your place to someone else;
- demolishes your place or your building;
- takes steps to convert your place or your building to a non-residential use. “Non-residential use” means not used for people to live in.
The Residential Tenancies Act (RTA) considers it an offense if a landlord or purchaser acts in bad faith. For a landlord or purchaser who breaks the law in this way, individuals can be fined up to $50,000 and corporations fined up to $250,000.
A tenant who suspects their former landlord or a purchaser has acted in bad faith can also file a tenant application against them with the LTB. To apply, you must fill in a form called a Tenant Application – Landlord Gave a Notice of Termination in Bad Faith – Form T5 and give it to the LTB. The fine amounts are different if they result from a T5 application. In these cases, the LTB can impose a fine up to $35,000.
It costs $53 to apply. You may not have to pay the $53 to file your request if you qualify for a fee waiver.
IMPORTANT: You must file your Form T5 within 1 year from the date you moved out of the rental unit.
Another option for renters whose landlord or a purchaser that may have acted in bad faith is to report them to the Rental Housing Enforcement Unit by calling their toll free line at 1-888-772-9277.
Now, let’s go over three common scenarios with form N12s a renter may experience.
Your landlord gives you an N12 and you want to leave
If a landlord gives you a form N12 and you want to leave your place, they still must pay you one month’s compensation or offer you another acceptable rental unit. The landlord must also provide 60 days written notice for the eviction to be granted.
If a tenant agrees to vacate the unit, they must move out by the termination date set out in the form (typically 60 days from the date the landlord provides you with the form N12).
Your landlord gives you an N12 and you want to stay in your unit, but you believe they are being honest about needing the rental unit
If your landlord gives you a form N12 and you believe they are being honest about their plans, you still do not have to vacate the unit after receiving written notice. You have a legal right to attend the hearing and present your case for staying in your home. Scheduling a hearing can take a long time, and it may be several months before one is scheduled. During this time, continue to pay your rent on time as usual.
However, if the LTB believes your landlord is acting in good faith, the only way to stay in your home or delay an eviction is by raising arguments in section 83 of the RTA. Essentially, you’d have to prove that even if your landlord is acting in good faith, it would be unfair to grant the eviction. This can involve complex legal arguments and it is in your best interest to get legal advice. Overall, it is likely that your landlord will be successfully granted an eviction order against you, and you will be required by law to vacate the unit by the termination date of the order.
Your landlord gives you an N12 and you want to stay in your unit, and you believe they are lying about needing the rental unit
Here’s where things get complex. There is a documented rise of 85% in N12 eviction filings in Ontario. Many of these are being filed in bad faith. We explain why that is in this article here, but the basic reason is landlords can make a lot more money off a rental unit if they get their old tenant out and a new tenant in. That’s why many landlords will risk being caught and fined for lying. The payoff can be worth it even though they are breaking the law.
Remember, acting in good faith is a requirement by the LTB. If your landlord has given you a form N12 and you think they are being dishonest, we strongly encourage you to get legal advice right away.
If you haven’t been evicted yet, inform your landlord that you will await the LTB hearing. Get ready to present your case at the LTB after they schedule the hearing. Keep paying your rent on time as usual while you wait.
If you suspect bad faith after you have already moved out, you may ask the LTB for a “remedy” by filing a Tenant Application – Landlord Gave a Notice of Termination in Bad Faith – Form T5 with the LTB. You can find more detailed information on how to file this form here.
Meanwhile, document all communication between you and your landlord. You may need it as evidence later. Insist on communicating with your landlord only in writing (emails, texts, messages) and take screenshots of anything your landlord says or does that makes you suspect they are lying about needing the unit. An example of this could be if you see your unit being listed as available for rent online sooner than 12 months after the date you moved out.
As a renter in Ontario, your rights are protected by law – but these protections only work if you know how to use them. With the rise in bad faith N12 filings, understanding the eviction process can be the difference between keeping your home and being wrongfully evicted.
Further resources
Are you interested in learning more about form N12s? Check out our comprehensive tip guide here.
Have more questions? Check out this great resource from Community Legal Education Ontario – CLEO.