N12 in 2026

N12 compensation 2026: one month's rent, and the bad-faith trap

Q: How much compensation does an Ontario landlord owe on an N12 in 2026?

One month of the tenant's current rent under RTA section 55.1. The compensation must be paid no later than the termination date stated in the N12. If the termination is for purchaser's own use, the obligation may fall on the landlord or be assigned to the purchaser by agreement, but the LTB will look to the landlord first.

Q: When is N12 compensation NOT owed?

Compensation is owed in almost all valid N12 situations. The narrow exceptions are: where the landlord and tenant reach a written mutual agreement on different terms (N11), or where the LTB orders a different outcome. Skipping compensation in any other case voids the N12 and exposes the landlord to a bad-faith application.

Q: What changed under Bill 60 for N12s in 2026?

Bill 60 tightened the landlord's-own-use route. The minimum occupancy after eviction is one year. The landlord must serve an N12 affidavit confirming genuine intent, and the LTB can now issue a conditional eviction order under section 71.1 that automatically triggers a bad-faith presumption if the unit is re-rented within 12 months for substantially higher rent.

Q: What is a bad-faith N12 and what does it cost?

A bad-faith N12 is a notice served without genuine intent to use the unit as claimed — usually to vacate a tenant and re-rent at market rent. The displaced tenant can file a T5 under RTA section 57 up to one year after eviction. The LTB can order moving expenses, the rent differential for up to 12 months, an administrative fine, and general damages. Awards routinely exceed $25,000; the maximum is $50,000.

Q: Can the purchaser pay the N12 compensation instead of the landlord?

Yes, by written agreement between landlord and purchaser. The compensation must still be paid by the termination date on the N12 and the tenant must receive it. If the purchaser fails to pay, the LTB will hold the landlord liable. Always document the assignment in the purchase agreement and require the purchaser to fund the compensation in escrow at closing.

For small Ontario landlords with five to twenty units, the N12 is the highest-stakes notice in the kit. Compensation is one month's rent under section 55.1. The trap is what happens if the intent later looks questionable: a bad-faith T5 application can land a landlord with a $25,000 to $50,000 award. Here is the rule in 2026, the Bill 60 changes, and the documentation that keeps the back-door closed.

Compensation amount

1× rent

One month of the tenant's current rent

Statutory source

s.55.1

Residential Tenancies Act, 2006

When paid

On or before

The termination date stated on the N12

The two N12 cases

RTA s.48

Landlord or family member own use

The landlord, their spouse, child, parent, or a person who provides or will provide care services to one of the above intends to move in. Compensation: one month's rent.

RTA s.49

Purchaser's own use

An agreement of purchase and sale has been signed and the purchaser (or their family) intends to move in. Compensation: one month's rent — payable by landlord, often assigned to purchaser in the APS.

What Bill 60 changed for the N12 in 2026

B60.1Mandatory N12 affidavit. The landlord must file a sworn affidavit confirming genuine intent and naming the person who will occupy. Filing a misleading affidavit is itself an offence under RTA s.234.
B60.212-month minimum occupancy. The named occupant must use the unit as their principal residence for at least 12 months. Less than that triggers the bad-faith presumption automatically.
B60.3Conditional eviction orders (s.71.1). The LTB can now grant an eviction order conditional on the landlord's compliance with the affidavit. If the unit is re-rented for materially higher rent within 12 months, the conditional order can be enforced against the landlord for damages.
B60.4Stronger bad-faith presumption. Where the unit is offered for rent within 12 months of eviction, bad faith is presumed unless the landlord can rebut. The burden of proof shifts to the landlord.

Documentation that protects you

Genuine intent is established by what you can show, not what you can say. Build this file before you serve the N12:

D.1Sworn N12 affidavit confirming the specific named person who will occupy and their relationship to the landlord.
D.2Evidence of intent: spousal name on the affidavit, child's school enrollment near the unit, or contractor quotes for a caregiver suite — concrete, not hypothetical.
D.3Calendar showing the planned move-in date and a credible reason it cannot be delayed (e.g., closing date on an existing home sale).
D.4For purchaser's own use (s.49): copy of the Agreement of Purchase and Sale showing the purchaser as a real, arms-length buyer.
D.5Bank statement or receipt showing the compensation paid to the tenant on or before the termination date.
D.6A written record that you offered the tenant an N11 (mutual agreement) first — many tenants prefer it for the relocation timeline.

What a bad-faith finding actually costs

A displaced tenant can file a T5 under RTA s.57 within one year of eviction. The LTB can order:

Moving and storage costs: Documented actual expenses, typically $1,500–4,000.
Rent differential: The difference between the old rent and the tenant's new rent, for up to 12 months — frequently $5,000–20,000 alone.
Administrative fine: Up to $25,000 payable to the Crown for a corporate landlord, $10,000 for an individual.
General damages: Stress, inconvenience, and loss of enjoyment — $5,000–15,000 in recent decisions.
Costs: The tenant's filing fees and reasonable representation costs.

Realistic ceiling: $50,000. Recent T5 awards in 2025 averaged $25,000–35,000 where bad faith was established. The maximum statutory award is $50,000. The landlord typically also returns the original one-month compensation as part of the order.

Signals the LTB treats as bad faith

Re-renting the unit within 12 months for materially higher rent.

Listing the unit for sale or rent on a public site shortly after the eviction.

The named occupant never moves in or stays only briefly (under three months).

Multiple N12s served on different tenants for the same unit within two years.

Public posts on social media or property forums contradicting the stated intent.

N12 timing — quick reference

— Notice period: 60 days minimum before the termination date.
— Termination date: must be the last day of a rental period or last day of a fixed-term lease (whichever is later).
— Compensation: paid on or before the termination date stated on the N12.
— Tenant's right of return on bad faith: 1 year from eviction date to file the T5.
— Minimum occupancy by named person: 12 months (Bill 60).

OHRC: an N12 cannot be used to evict for protected-ground reasons

The N12 must reflect genuine intent for the unit. It cannot be used to remove a tenant because of their family status, source of income, disability, or any other protected ground. Even a properly served N12 can be set aside if the LTB finds the underlying motive was discriminatory.

FAQ

How much compensation does an Ontario landlord owe on an N12 in 2026?

One month of the tenant's current rent under RTA s.55.1. Paid on or before the termination date stated in the N12. Failing to pay voids the N12 and exposes the landlord to a bad-faith T5.

When is N12 compensation NOT owed?

Almost never. The narrow exceptions are a written mutual agreement (N11) with different terms, or an LTB order. Skipping compensation in any other case is a bad-faith trigger.

What changed under Bill 60 for N12s in 2026?

Bill 60 added a mandatory sworn affidavit, a 12-month minimum occupancy by the named person, conditional eviction orders under s.71.1, and a stronger bad-faith presumption if the unit is re-rented within 12 months.

What is a bad-faith N12 and what does it cost?

A bad-faith N12 is a notice served without genuine intent. The displaced tenant can file a T5 under s.57. Awards include moving costs, rent differential for up to 12 months, an administrative fine up to $25,000, and general damages — typically $25,000–35,000 in total, maximum $50,000.

Can the purchaser pay the N12 compensation instead of the landlord?

Yes, by written agreement. The compensation must still be paid by the termination date. If the purchaser fails to pay, the LTB holds the landlord liable. Always escrow the compensation at closing.

Related guides

N12 Form Ontario: Landlord Guide

How to fill out and serve a valid N12, including the Bill 60 affidavit requirement.

Bad-Faith N12 and T5: Landlord Defence

How tenants prove bad faith, the T5 process, and how to protect yourself before serving.

Selling a Tenanted Property in Ontario

N12 for purchaser's own use, the APS clause that assigns compensation to the buyer, and pricing implications.

Rent Increase Calculator

Calculate the new rent and the LMR top-up if you keep the tenant in place instead.

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Statutory references

Sections of Ontario law this guide is grounded in. Read the source text before acting on a specific situation.

RTA s.48— Notice for landlord's or family member's own use (N12)
RTA s.49— Notice for purchaser's own use (N12)
RTA s.55.1— Compensation requirement — one month's rent owed to the tenant
RTA s.57— Former tenant's T5 application for bad-faith N12 (up to $50,000)
RTA s.71.1— Conditional eviction order following the Bill 60 amendments
RTA s.234— Offence — filing a misleading affidavit or demanding prohibited information

About this guide

Written and maintained by the ScreenTenants.ca editorial team and reviewed against Ontario's Residential Tenancies Act, 2006 and the Landlord and Tenant Board's published rules. Last reviewed June 2026.

This is general information for Ontario landlords, not legal advice. Rules change and individual situations vary — confirm details with the LTB or a licensed paralegal or lawyer before acting on a specific matter.

See our editorial policy for sources, review cadence, and corrections.