Selling a Rented Home in Ontario: Showings, N12 Notices and Compensation

Selling a home that has a tenant in it adds steps that an ordinary sale does not have. You need to show the unit, and you may be asked whether the buyer can take possession. Both are governed by the Residential Tenancies Act, 2006, and the tenant keeps rights throughout the sale.

This article is written for the selling landlord. It explains showings, when an N12 notice can be used for a buyer who wants to live in the unit, the timing rules, what you owe the tenant, and what can go wrong. Your facts may change the answer, so a lawyer can confirm your situation.

Showing a rented home 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..

• Put the notice in writing.
• Give it at least 24 hours before the showing.
• State that the reason is a showing to a potential purchaser.
• State the day and an entry time between 8 a.m. and 8 p.m.
• If an agent will attend, make sure you have authorized them in writing.

When an N12 can be used for a buyer

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 same notice can be used for a condominium unit when the landlord is an owner under the Condominium Act, 1998 and has agreed to sell the unit. A building with more units than the rules allow, and a buyer who is an investor rather than an occupier, will generally not fit. If you are unsure, get advice before serving anything.

Timing and what you owe the tenant

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

The landlord who gives the notice must pay the tenant compensation equal to one month's rent, or offer another rental unit acceptable to the tenant. This duty stays with you as the selling landlord and does not pass to the buyer. Do not assume the purchase agreement moves this obligation to the buyer.

The Board, the affidavit and bad-faith claims

A notice does not itself remove a tenant who stays. The Landlord and Tenant Board 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. That means the buyer must be willing to swear to it.

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.

2026 changes and what to do next

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 N12, will not be accepted as of November 30, 2026.

• Confirm the building has no more than three units, or is a condo unit you own.
• Confirm the buyer genuinely plans to live in the unit and will sign the affidavit.
• Use the current version of Form N12.
• Pick a termination date that is at least 60 days out and fits the rental period or term.
• Budget for one month's rent or an acceptable alternative unit.
• Check whether your municipality has its own rental bylaws.
• Speak with a lawyer before serving notice.

Frequently asked questions