- A selling landlord can give the tenant an N12 on the buyer's behalf only if the buyer in good faith requires the unit for residential occupation.
- The termination date must be at least 60 days after notice is given, and the selling landlord, not the buyer, owes the tenant one month's rent or another acceptable unit.
- A bad-faith notice can lead to a claim by the former tenant, so the buyer's genuine need matters from the start.
You have agreed to sell a home that has a tenant in it, and your buyer wants to live there. The tenancy does not simply end because the property is sold, so you need to follow the notice rules in Ontario's Residential Tenancies Act, 2006.
This article explains when a seller can give an N12 notice for the buyer, how much notice is needed, what you owe the tenant, and the risks if the buyer's plans are not genuine. Your situation may have details that change the answer, so a lawyer can confirm your next steps.
When you can give an N12 for the 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 a notice ending the tenancy, which is Form N12. This applies if the purchaser in good faith requires the unit for residential occupation.
Condominium units are covered too. The purchaser 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.
- You must already have an agreement to sell.
- The building must have no more than three residential units, or be a condo unit you own as described above.
- The buyer must genuinely need the unit to live in.
How much notice the tenant must get
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.
In practice, this means the date you pick may need to be later than the bare 60-day minimum. Check the tenant's rent period or lease term before choosing a date.
What you owe the tenant, and what the Board needs
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.
If the tenant does not move out, you would need to apply to the Landlord and Tenant Board. The Board cannot order an eviction based on this kind of 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.
Because the affidavit must come from the person who will live there, talk with your buyer early about whether they are prepared to sign it.
Showings, bad-faith claims and the 2026 changes
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..
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 N12, will not be accepted as of November 30, 2026.
| Topic | Rule for a purchaser N12 |
|---|---|
| Minimum notice | At least 60 days, ending at the end of a rental period or fixed term |
| Compensation | One month's rent or another acceptable unit, owed by the seller |
| Eviction hearing | Affidavit from the person who will live there |
| Bad-faith claim | Within one year of moving out |
What to do next
- Confirm your property fits the three-unit limit or the condo rule.
- Ask the buyer to confirm they genuinely intend to live in the unit.
- Check the tenant's rental period or lease term before choosing a termination date.
- Download the current N12 form, since older versions will not be accepted from November 30, 2026.
- Plan for the one month's rent compensation, or an acceptable alternative unit.
- Give written notice at least 24 hours ahead for every showing.
- Check whether your municipality has its own rental bylaws.
If the tenant disputes the notice or the buyer's plans change, speak with a lawyer before taking further steps.
Frequently asked questions
Does the buyer have to pay the tenant compensation?
No. The duty to pay one month's rent, or offer another unit the tenant finds acceptable, stays with the selling landlord and does not pass to the purchaser.
How much notice does the tenant get?
The termination date 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.
Do the September 21, 2026 changes affect my N12?
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. You should still use the current form, because older versions will not be accepted as of November 30, 2026.
What happens if the buyer does not actually move in?
A former tenant may apply within one year of moving out if the notice was given in bad faith. The Board may order up to 12 months' rent, moving and storage costs, and an administrative fine.
Sources
- Residential Tenancies Act, 2006, S.O. 2006, c. 17 (e-Laws) — Ontario e-Laws
- Tribunals Ontario – LTB operational update, legislative changes effective September 21, 2026 — tribunalsontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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