Effective September 21, 2026, a landlord serving an N12 for their own use (or a qualifying family member’s use) can skip the usual one month’s compensation to the tenant if they give at least 120 days’ notice instead of the standard 60. This waiver does not apply to an N12 served because a purchaser wants to move in — that still requires 60 days’ notice and one month’s compensation. A new regulation also presumes bad faith if the landlord or specified occupant doesn’t move in within 60 days of the termination date and the former tenant files a T5 application, unless the landlord can rebut it. The underlying good-faith requirement for any N12 is unchanged.
- As of September 21, 2026, a landlord giving 120+ days’ notice on an own-use N12 can skip the usual one month’s compensation.
- That waiver does not apply to a purchaser’s own-use N12 — 60 days’ notice and one month’s compensation still apply there.
- A new rule presumes bad faith if the landlord or specified occupant hasn’t moved in within 60 days of the termination date and the tenant files a T5.
- The underlying good-faith requirement under section 48 of the Residential Tenancies Act has not changed.
- These changes come from Bill 60 (the Fighting Delays, Building Faster Act, 2025), layered on top of earlier Bill 97 amendments.
- Toronto’s high concentration of individually owned, investor-held condo rentals makes own-use evictions especially common locally — these rules are directly relevant here.
What Actually Changed
Under Bill 60 (the Fighting Delays, Building Faster Act, 2025), which the Ontario government passed on November 24, 2025, changes to N12 "own use" evictions took effect September 21, 2026. The headline change: a landlord serving an N12 for their own use, or a qualifying family member’s use, can now skip the usual one month’s compensation to the tenant — but only if they give at least 120 days’ notice instead of the standard 60. Give less notice than that, and the usual compensation rule still applies.
Because this change is recent, a lot of information circulating about N12 compensation online is now outdated. Confirm the current rule — and which version applies to your specific notice — before relying on anything published before late 2026.
What Didn’t Change
The 120-day compensation waiver applies specifically to a landlord’s own use or a qualifying family member’s use. It does not extend to an N12 served because a purchaser wants to move in after a sale — that version of the N12 still requires the standard 60 days’ notice and one month’s compensation, unchanged. See our guide on what happens to your tenancy when the landlord sells for how that version works. The underlying good-faith requirement under section 48 of the Residential Tenancies Act also hasn’t moved — an N12 still has to reflect a genuine intention to occupy, not a pretext to end a tenancy.
The New Bad-Faith Presumption
A regulation (O. Reg. 240/26) filed in mid-2026 introduced a new tool for tenants: if the landlord or the specified occupant does not move in within 60 days of the stated termination date, and the former tenant files a T5 application, bad faith is now presumed — shifting the burden to the landlord to rebut it, rather than requiring the tenant to prove bad faith from scratch. This is a meaningful procedural shift for tenants who suspect an N12 wasn’t genuine.
If you move out under an N12, note the exact termination date on the notice and keep an eye on whether the unit appears reoccupied, relisted, or simply sits vacant well past 60 days afterward. That timeline is now directly relevant to a potential T5 application.
Why This Matters More in Toronto
Own-use and purchaser-use N12 evictions come up disproportionately in rental markets dominated by individually owned condo units bought as investments — exactly the profile of a large share of Toronto’s rental housing stock, as opposed to markets built mostly around large purpose-built apartment buildings. That makes these specific rule changes more operationally relevant to a typical Toronto landlord-tenant relationship than they might be elsewhere in the province.
If You’ve Received an N12
Check three things immediately: how much notice you actually received, whether it names the landlord, a family member, or a purchaser as the person moving in, and whether you were offered the compensation the situation entitles you to. Don’t assume an older explanation of the rules still applies — confirm the current version before agreeing to anything. Our guide on bad-faith evictions and T5 applications covers what to do if you later suspect the N12 wasn’t genuine.
If You’re Planning to Serve an N12
Whether the 120-day compensation waiver is worth it depends on your timeline — giving 120 days instead of 60 means a longer wait before the unit is available, in exchange for not owing a month’s compensation. Whatever notice period you choose, the genuine-occupancy requirement is unchanged and now carries a real consequence if it isn’t met: actually moving in (or having your qualifying family member move in) within 60 days of the termination date matters more than ever, given the new bad-faith presumption.
These rules are new and genuinely easy to get wrong in either direction. Call us at 416-274-2222 for a free consultation — whether you’ve received an N12 or are planning to serve one.
Frequently Asked Questions
It depends on the notice given and the reason. If the N12 is for the landlord’s or a qualifying family member’s own use and they give you at least 120 days’ notice, they can now skip the usual one month’s compensation. If the notice is for a shorter period, or the N12 is because a purchaser wants to move in, the standard 60-day notice and one month’s compensation still apply.
A regulation introduced in mid-2026 presumes a landlord acted in bad faith if the landlord or the person named as moving in hasn’t actually moved in within 60 days of the tenancy’s termination date, and the former tenant files a T5 application. The landlord then carries the burden of rebutting that presumption rather than the tenant having to prove bad faith from scratch.
Yes. The core good-faith requirement in section 48 of the Residential Tenancies Act has not changed, and a tenant who believes an N12 wasn’t genuine can still file a T5 application seeking a range of remedies, including compensation.
No. The compensation waiver applies specifically to a landlord’s own use or a qualifying family member’s use. An N12 served because a purchaser intends to move in still requires the standard 60 days’ notice and one month’s compensation — that part of the rule did not change.
Toronto has an unusually high share of individually owned, investor-held rental units — condos bought as rental properties rather than purpose-built apartment buildings. Own-use and purchaser-use N12s come up more often in that kind of market than in areas dominated by large rental buildings, which makes staying current on these rules especially relevant for Toronto landlords and tenants.
Confirm the notice period given and whether it is for the landlord’s own use, a family member’s use, or a purchaser’s use — that determines what you are owed. Keep a record of the date you move out versus the stated termination date, since that matters if you later need to check whether the new occupant actually moved in. Get advice before agreeing to move out early or signing anything the landlord presents.