TREADSTONE LAW · ONTARIO · DIGITAL LEGAL SERVICES · EST. MMXXI ·TSL
Licensed by the Law Society of OntarioFlat fees published upfrontWe reply to messages within 1 business daySign in
Home/Articles/Real Estate
№ 22 Real Estate

Buying a House With a Tenant Living in It in Ontario

Buying a tenanted home in Ontario and want to move in? Learn how an N12 notice works, the 60-day rule, compensation and bad faith consequences.

Real Estate4 min readTSLBy the Treadstone Law Team · OntarioUpdated November 13, 2026
← All articles
Key takeaways
  • A purchaser's-own-use N12 is only available for a residential complex of no more than 3 units or a condominium unit.
  • The termination date must be at least 60 days after the notice, and the selling landlord must pay the tenant one month's rent or offer an acceptable unit.
  • If you do not actually move in, the former tenant can apply to the Landlord and Tenant Board for compensation.

If you want to buy a home and live in it, finding a tenant already there can change your plans. You cannot simply tell the tenant to go, and the rules about how a tenancy can end are strict.

This article explains when the Residential Tenancies Act, 2006 lets a buyer's move-in be the reason for an N12 notice, how the timing and payment work, and what happens if the buyer does not follow through.

Who gives the notice, and when

The notice is given by the selling landlord, not by you as buyer. Under s. 49 of the Residential Tenancies Act, 2006, a landlord who has signed an agreement of purchase and sale for a residential complex of no more than 3 units, or a condominium unit, may give an N12 notice.

The purchaser must in good faith need the unit for residential occupation by the purchaser, their spouse, a child or parent of either, or a caregiver.

When an N12 is not available

A purchaser's-own-use N12 is only available for a complex of no more than 3 units or a condominium unit, so tenants in larger buildings cannot be ended this way.

There is also a newer option, a 120-day notice with no compensation under s. 48.1, effective September 21, 2026. It applies to the landlord's own use under s. 48 and is not described as applying to purchaser notices under s. 49. A buyer relying on a purchaser's N12 should not assume it applies.

If you only plan to rent the home out, or want it for someone who is not on the list above, this route is not open to you. A lawyer can tell you whether your plans fit.

Timing and payment

PointRule
Earliest termination dateAt least 60 days after the notice
Date must fall onThe last day of a rental period or fixed term
Who pays the tenantThe selling landlord, not the purchaser
What is paidOne month's rent, or an acceptable unit, by the termination date

Because the seller must pay the compensation, your agreement of purchase and sale should say who handles the notice and the payment, and what happens if the tenant does not leave. Ask a lawyer to build this into the offer.

What happens if you do not move in

If the purchaser does not move in after a purchaser N12, that is treated as bad faith. The former tenant can file a T5 application within one year of moving out.

The Landlord and Tenant Board may order rent differential, moving costs, general compensation of up to one year's rent and an administrative fine, and it may name the purchaser as a respondent. In other words, the risk can land on you personally, even though the landlord gave the notice.

What to do next

Frequently asked questions

Does the tenant have to leave because I bought the house?

Not on its own. A landlord who has signed an agreement of purchase and sale may give an N12 notice if the home is a complex of no more than 3 units or a condominium unit and the purchaser in good faith needs it to live in.

Can I give the N12 myself?

The N12 is given by the landlord who has signed the agreement of purchase and sale. Your lawyer can help coordinate this with the seller.

Who pays the tenant?

The selling landlord, not the purchaser, must pay one month's rent or offer an acceptable unit by the termination date.

What if I change my mind and do not move in?

The former tenant can file a T5 application within one year of moving out, and the Board can order compensation and a fine. Only give notice if you truly intend to live there.

Sources

Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.

This article is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.

This is a real estate question

Start a file online — flat, published fees, reviewed by a licensed lawyer before a dollar is owed.

ContactStart a File →