Selling a Rented Home in Ontario: The N12 Notice for Buyer's Own Use

You have agreed to sell a home or condo that has a tenant in it, and the buyer wants to move in. The tenancy does not simply end because the property is sold, so you need to follow the Residential Tenancies Act, 2006 steps for ending it.

This article is written for the selling landlord. It explains when an N12 notice can be used, the timing and compensation rules, how to handle showings, and the risks of getting it wrong. Your facts may differ, so a lawyer can confirm the details before you serve anything.

When an N12 notice is available

A landlord who has agreed to sell a residential complex with no more than three residential units may, on the purchaser's behalf, give the tenant notice ending the tenancy on Form N12. This applies if the purchaser in good faith requires the unit for residential occupation.

The notice can also be used for a condominium unit when the landlord is an owner under the Condominium Act, 1998 and has agreed to sell the unit. In both cases the key point is that there must be an agreement to sell, and the buyer must genuinely intend to live there.

Timing and the termination date

The termination date in the notice must be at least 60 days after the notice is given. It must also fall at the end of a rental period or, for a fixed-term tenancy, at the end of the term.

This can affect your closing date. If the agreement of purchase and sale closes sooner than the earliest valid termination date, you may need to discuss timing with the buyer or get legal advice before signing.

Compensation and the buyer's affidavit

• You, as the landlord giving the notice, must pay the tenant compensation equal to one month's rent, or offer another rental unit acceptable to the tenant.
• That duty stays with the selling landlord and does not pass to the purchaser.
• If the matter goes to the Landlord and Tenant Board, it cannot order an eviction based on this notice unless an affidavit is filed by the person who personally needs the unit, certifying that they need it in good faith for their own personal use.

In practical terms, the buyer should understand early that they may be asked to sign that affidavit, and that it must be true.

Showing the unit to buyers

To show a rented unit to a potential purchaser, the landlord, or a broker or salesperson the landlord has authorized in writing, must give the tenant written notice at least 24 hours ahead. The notice must state the reason, the day, and an entry time between 8 a.m. and 8 p.m..

Bad-faith risk and the 2026 changes

A former tenant may apply within one year of moving out if the termination notice was given in bad faith. The Board may order up to 12 months' rent as general compensation, moving and storage costs, and an administrative fine up to the greater of $10,000 and the Small Claims Court limit.

The Residential Tenancies Act changes in force September 21, 2026, namely the 120-day-notice compensation change and the 60-day occupancy presumption, do not apply to N12 notices served for a purchaser's own use. Older versions of the updated Landlord and Tenant Board forms, including the N12, will not be accepted as of November 30, 2026.

What to do next

• Confirm you have a binding agreement to sell and that the property fits the three-unit or condo rule.
• Ask the buyer to confirm in writing that they intend to live in the unit.
• Check the tenancy's rental periods or fixed term so the termination date is valid.
• Use the current version of the N12 form.
• Plan for the one month's rent compensation or an acceptable alternative unit.
• Give written 24-hour notice for every showing.
• Check whether your municipality has its own rental rules, then speak with a lawyer before serving the notice.

Frequently asked questions