N12 Notice: Is One Month's Rent Owed?

Usually yes, unless the notice falls under the new exception. A landlord who ends a tenancy with an N12 for their own or their family's use must pay one month's rent or offer another acceptable unit. Since September 21, 2026, that payment is not required if the notice was given on or after that date, gives at least 120 days, and ends on the last day of a rental period or term. A purchaser's N12 always requires the payment.

Most explanations of the N12 online were written before this change, so many tenants and landlords have the old rule in mind. This guide explains the rule as it stands in the Residential Tenancies Act today, what the Landlord and Tenant Board (LTB) checks before it evicts anyone, and what a tenant can do if the landlord or relative never moves in. It is written for tenants, including the many Persian-speaking families who rent basement apartments, condo units and houses from individual landlords in North York, Richmond Hill and Thornhill. Our main page on landlord and tenant disputes covers the wider picture.

When is the one month's rent owed?

Compensation for an N12 notice under the Residential Tenancies Act
Type of N12	Minimum notice	Compensation	Section
Landlord's own or family use, given before September 21, 2026	60 days, ending on the last day of a rental period or term	One month's rent or another acceptable unit	RTA ss. 48(2), 48.1(1)
Own or family use, given on or after September 21, 2026, with fewer than 120 days	60 days, ending on the last day of a rental period or term	One month's rent or another acceptable unit	s. 48.1(1)
Own or family use, given on or after September 21, 2026, with at least 120 days, ending on the last day of a period or term	120 days	None required	s. 48.1(2)
For a purchaser's use, after an agreement to sell	60 days, ending on the last day of a rental period or term	One month's rent or another acceptable unit, owed by the selling landlord	ss. 49(3), 49.1

The 120-day exception was added by the Fighting Delays, Building Faster Act, 2025, and the LTB's operational update confirms it applies to notices served on or after September 21, 2026. The LTB states plainly that the change "does not apply to N12 notices served for purchaser's own use". When compensation is owed, it must be paid no later than the termination date in the notice (s. 55.1).

How does an N12 eviction work, step by step?

From an N12 notice to an eviction order
Step	What happens	Rule
1. Notice	The landlord serves Form N12 naming who will move in; the person must need the unit in good faith for at least one year	RTA s. 48(1)
2. Tenant's choice	You may stay until the termination date, or leave earlier on at least 10 days' written notice	s. 48(3), (4)
3. Landlord's application	If you have not moved, the landlord files an L2 application, no later than 30 days after the termination date	s. 69(2)
4. Affidavit	The person who will move in swears that they need the unit in good faith for at least one year	s. 72(1)
5. Hearing	You can attend and explain why you should not be evicted; the LTB must consider refusing or delaying eviction	s. 83(1), (2)
6. Compensation check	The LTB cannot issue an eviction order until any required compensation is paid	s. 83(4)
7. Enforcement	Only the Sheriff enforces an eviction order	s. 85; LTB Interpretation Guideline 6

The Ontario government's own tenant page puts the key point simply: even if your landlord gives you written notice, you do not have to move out; the landlord must first apply for and receive an eviction order from the LTB, and you have the right to a hearing. A landlord who changes the locks instead is breaking the Act; our guide on what to do if you are locked out explains the urgent route back in.

Who can the landlord move in?

Section 48(1) lists the landlord, the landlord's spouse, a child or parent of the landlord or spouse, and a caregiver for any of them who will live in the same building or complex. A cousin, sibling or friend is not on the list. The landlord must be an individual and the unit must be owned at least in part by an individual (s. 48(5)), so a corporation cannot use an N12 for its own use. A purchaser's N12 is limited to a residential complex with no more than three units, or a condominium unit (s. 49(1), (2)).

Some tenants have stronger protection. If the building became a registered condominium on or after June 17, 1998 while you were a tenant, a landlord generally cannot serve you an N12 at all (s. 51(1)), and the same applies where the unit became separately conveyable through a severance or plan of subdivision while you were the tenant (s. 56).

What if the landlord never moves in?

A former tenant can apply to the LTB with a T5 application if the N12 was given in bad faith and the named person did not move in within a reasonable time. The application must be made within one year after you moved out (s. 57(2)). Bad faith is presumed, unless the landlord proves otherwise, if within the year after you leave the landlord advertises or re-rents the unit, advertises it or the building for sale, demolishes it, or starts converting it (s. 57(5), (6)). For N12 notices for the landlord's own use, the LTB says that from September 21, 2026 the landlord or other named person must normally move in within 60 days of the termination date, and that bad faith is presumed if they do not (s. 57(6.1)).

The LTB can order the landlord to pay the increase in your rent for a year, general compensation of up to 12 months of your last rent, and reasonable moving and storage costs, plus an administrative fine (s. 57(3)). It is also an offence to recover possession without paying the compensation required by s. 48.1 (s. 233(f)), and the maximum fine for an individual is $100,000 (s. 238(1)). The LTB can order payment up to the Small Claims Court limit (s. 207(1)), which is $50,000 since October 1, 2025; claims above that can go to court (s. 207(2)). Our Small Claims Court page describes that court in general terms. Larger claims are covered on our civil litigation page.

What changes the answer?

The date the notice was given. The 120-day exception only applies to notices given on or after September 21, 2026 (s. 48.1(2), item 1).
The length of notice. Fewer than 120 days means the one month's rent is owed (s. 48.1(1)).
The termination date. It must be the last day of a rental period or the end of a fixed term; a notice with the wrong date is defective and cannot be amended (s. 48(2); LTB Interpretation Guideline 12).
Own use or purchaser. Purchaser notices always carry compensation (s. 49.1).
Who the landlord is. Only an individual landlord can serve an own-use N12 (s. 48(5)).
Whether you move out early. You may leave on at least 10 days' written notice (s. 48(3), (4)); keep written proof of the date you left and of any payment.
Whether the LTB refuses the eviction. If the landlord paid and the eviction is refused, the LTB may order you to pay the compensation back (s. 73.1).

A worked example

For example, imagine a family who rent the basement of a house in Richmond Hill, paying rent on the first of each month. On October 1, 2026, their landlord, who owns the house personally, serves an N12 saying her son needs the basement, with a termination date of January 31, 2027. This is a hypothetical walk-through of the rules, not a description of any real case or result.

The notice was given after September 21, 2026, it gives 122 days, and January 31 is the last day of a monthly rental period, so the landlord does not have to pay one month's rent or offer another unit. Had the notice set December 31, 2026 (91 days), the one month's rent would be owed by December 31. Either way, the family does not have to leave on the termination date: if they stay, the landlord must file an L2 application within 30 days of it, the son must swear the affidavit, and the LTB decides after a hearing. If they move out and the son has not moved in within 60 days of January 31, bad faith is presumed on a T5 application, which must be filed within one year of leaving.

What mistakes do tenants make with an N12?

Moving out on the termination date because the notice "says so". Only an LTB order, enforced by the Sheriff, ends possession against your will.
Assuming the one month is always owed. Check the date given, the notice length and the termination day.
Assuming it is never owed. Many N12s still require it, including every purchaser N12.
Not keeping the notice and envelope. The service date decides which rule applies.
Losing track of the unit after leaving. Advertisements and listings in the following year are evidence for a T5.
Missing the one-year deadline for a T5. The LTB cannot hear a late application (s. 57(2)).

What to do this week

Write down the date and method by which the N12 reached you, and keep the notice.
Count the days to the termination date and check that it is the last day of a rental period.
Check who is named as moving in and whether that person is on the s. 48(1) list.
Decide with advice whether to stay until a hearing or leave early on 10 days' written notice.
If compensation is owed, ask in writing when it will be paid; it is due by the termination date.
Book a consultation; you can discuss your matter in English, Persian (Farsi) or French.

Frequently asked questions

Can my landlord give me an N12 during a one-year lease?

The termination date must be the end of the fixed term if there is one (s. 48(2)). So the earliest the tenancy can end on an N12 is the last day of the lease.

Is "another acceptable unit" my choice?

The Act says another rental unit "acceptable to the tenant" (s. 48.1(1)). If you do not accept the unit offered, the one month's rent is the alternative.

Does the 120-day rule apply to a buyer's N12?

No. The LTB says the change does not apply to N12 notices for a purchaser's use, and s. 49.1 still requires one month's rent or another acceptable unit.

Can I get help at the LTB in Persian?

Under rule 1.10.1 of the LTB Rules of Procedure, a person appearing before the LTB may use an interpreter, and interpretation is provided on request in line with LTB policy. Ask when you receive the notice of hearing. For courts, see our guide to Farsi interpreters in Ontario courts.

Where can I get free advice?

The Ontario government's renting page points tenants to community legal clinics through Legal Aid Ontario (1-800-668-8258). Legal Aid's fact sheet says tenant duty counsel are available at most LTB locations.

What if my landlord is pressuring me to sign an agreement to leave?

A tenant's notice is void if it was required when the lease was signed (s. 37(4)), and harassing a tenant is an offence (s. 235). Do not sign anything about ending your tenancy without advice.

Your landlord served an N12 to move in: are you still owed one month's rent?