Selling a Rented Home in Ontario: Ending the Tenancy With an N12

You have agreed to sell a rented house or condo, and the buyer wants to move in.

This article is written for the selling landlord. It explains the N12 notice, the timing and compensation rules, what the Landlord and Tenant Board expects, and the risks of getting it wrong. Because the details matter, a lawyer can confirm how the rules apply to your sale.

When a seller can serve an N12

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. The key is the buyer's genuine need to live there. A buyer who wants the unit empty for another reason does not fit this notice.

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.

Build this into your agreement of purchase and sale. The closing date and the earliest lawful termination date may not line up, so it is worth planning the timeline with a lawyer before you commit to a closing date.

What you owe the tenant

The landlord who gives a purchaser's-own-use 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 the selling landlord and does not pass to the purchaser.

That means you cannot simply leave the payment to the buyer after closing. If the sale agreement shifts the cost between you and the buyer, that is a private arrangement and the duty to the tenant remains yours.

The Board, the affidavit and the risks

If the tenant does not leave, you would need to apply to the Landlord and Tenant Board. The 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.

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 2026 changes to the Act that came into force on 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.

Showings and next steps

To show a rented unit to a potential purchaser, the landlord, or a broker or salesperson the landlord has authorized in writing, must give 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..

• Confirm the buyer genuinely intends to live in the unit, and that the property type qualifies.
• Use the current N12. Older versions of the updated Board forms, including N12, will not be accepted as of November 30, 2026.
• Set a termination date that meets the 60-day and end-of-period rules.
• Plan for the one month's rent or an acceptable alternative unit.
• Arrange written showing notices for every viewing.
• Check whether your municipality has its own rental bylaws.
• Speak to a lawyer before serving the notice.

Frequently asked questions