The short version
- Section 48(1) requires a good-faith intention that the person occupy the unit for at least one year. That rule is old and it applies to every N12.
- From September 21, 2026 the person named must also move in within 60 days of the termination date, or bad faith is presumed.
- The presumption can be rebutted. What rebuts it is evidence of what actually changed, which only exists if it was kept at the time.
- A bad-faith finding means compensation to the tenant and, separately, an administrative fine payable to the Board.
- Three dates decide the case: what the notice said, when the tenant actually left, when the named person actually moved in.
01The duty does not end at the termination date
Most landlords treat the N12 as finished when the keys come back. The Act does not. The notice is a statement about the future, and the obligations it creates run for a year after the tenant has gone.
Section 48(1) lets you end a tenancy where you, a family member or a caregiver in good faith require the unit for residential occupation for a period of at least one year. Section 49 does the same where a purchaser requires it. The words that matter are good faith and at least one year, and neither is tested on the day you serve.
They are tested later, usually when a former tenant sees the unit relisted and files a T5.
02What changed on September 21, 2026
Bill 60 added a deadline that did not exist before. On a notice given on or after September 21, 2026, the person named in the N12 has 60 days from the termination date to occupy the unit. Miss it and the notice is presumed to have been given in bad faith.
That word presumed is doing a lot of work. Before, a tenant alleging bad faith had to build the case from scratch. Now a missed date builds the first half of it, and you answer it rather than the other way round.
It is rebuttable. A closing that collapsed, a permit that was refused, a family circumstance that changed are all real answers. They are only answers you can give if the documents still exist.
| Duty | Deadline | Authority |
|---|---|---|
| Notice | 60 days, ending on the last day of a rental period or fixed term | RTA ss. 48, 49 |
| Compensation | One month's rent by the termination date, unless 120+ days' notice on a notice given from Sept 21, 2026 | RTA s. 48.1 |
| Move in | Within 60 days of the termination date, on notices given from Sept 21, 2026 | Bill 60 regulation |
| Occupy | At least one year | RTA s. 48(1) |
TenantBay calculatorYour N12 obligations, and the dates that prove you met them
A good-faith N12 and a bad-faith one look identical a year later unless you can show three dates: what the notice said, when the tenant actually left, and when the person named actually moved in. Here are the deadlines those dates have to beat.
The notice
From September 21, 2026, giving 120 days or more removes the one month's compensation.
What you have to be able to show
Pick the date you are giving the notice.
Based on sections 48, 48.1 and 49 of the Residential Tenancies Act, 2006 and LTB Interpretation Guideline 12. This is general information about what the Act requires, not legal advice, and it does not decide whether a notice is given in good faith. That is a question of fact for the Landlord and Tenant Board.
03The one-year rule is older, and it is the one people miss
The 60-day deadline is new and it is getting all the attention. The one-year occupancy requirement has been in section 48(1) the whole time, and it is the one most bad-faith applications actually turn on.
Moving in within 60 days and then relisting the unit at a higher rent four months later does not satisfy section 48(1). Neither does moving a family member in briefly, nor using the unit as a short-term rental, nor selling with vacant possession after a token occupancy.
Which means the record you need does not stop when the named person gets the keys. It runs for twelve months.
04What a finding of bad faith actually costs
Two separate things, and most summaries run them together.
The first is compensation to the tenant. The Board can order the difference in rent they pay elsewhere for up to a year, their moving and storage costs, a rent abatement, and general compensation. On a unit where the tenant was well under market, the rent differential alone is the biggest number in the order.
The second is an administrative fine, payable to the Board rather than to the tenant. It is capped at the monetary jurisdiction of the Small Claims Court, which rose from $35,000 to $50,000 on October 1, 2025. It is not automatic; the Board uses it where a landlord has shown blatant disregard for the Act.
05The three dates, and nothing else
Strip the case back and it is three dates plus the reason for any gap between them.
- 1
What the notice said
The termination date on the N12, the date it was given, and how it was delivered. Keep the notice and the proof of service together, because the notice period is counted from when it was deemed given.
- 2
When the tenant actually left
The day the unit was handed back. Where that is later than the termination date, it is the date the 60-day move-in period runs from, so it is not a detail.
- 3
When the named person actually moved in
The date, and something contemporaneous that supports it: a utility transfer, a change of address, a lease ending elsewhere, a moving invoice.
- 4
And, if a deadline slipped, why
The correspondence that shows what changed and when you knew. This is the entire rebuttal, and it is worthless if assembled afterwards.
06Where this fits in TenantBay
TenantBay prepares the N12 with the dates computed from the lease: the 60-day minimum, the roll forward to the end of a rental period, the compensation, and the 120-day route where it removes it.
Then it keeps the part that outlives the notice. The termination date, the tenant's actual move-out, the occupant's move-in and the one-year occupancy date sit on the tenancy as tracked items rather than in somebody's memory, so the file that answers a T5 is the file you were already keeping.
Questions landlords actually ask
How long must a landlord live in a unit after an N12 in Ontario?
Section 48(1) requires a good-faith intention that the landlord, family member or caregiver occupy the unit for at least one year. Re-renting or selling inside that year is what most bad-faith applications are built on.
What is the 60-day rule on an N12?
On a notice given on or after September 21, 2026, the person named must occupy the unit within 60 days of the termination date. If they do not, the notice is presumed to have been given in bad faith. The presumption can be rebutted with evidence of what changed.
What can the Board order if an N12 was given in bad faith?
Compensation to the tenant, which can include the rent difference they pay elsewhere for up to a year, moving and storage costs and an abatement. Separately, an administrative fine payable to the Board, capped at the monetary jurisdiction of the Small Claims Court, currently $50,000.
Can I avoid paying the one month's compensation?
On a notice given from September 21, 2026, compensation does not apply where you give at least 120 days' notice and the termination date falls at the end of a rental period or fixed term. On notices given before that date it is payable regardless of how much notice you give.
What happens if my buyer's closing is delayed past the 60 days?
The presumption of bad faith applies, and you rebut it with evidence. A collapsed or delayed closing is a real answer, but it has to be shown with the agreement, the lender or solicitor correspondence and the date the person actually moved in.
Sources
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