There is no set way to cancel a N12 notice once it is given to the tenant. Make sure the person expected to move into the rental unit is committed before serving the N12 notice to your tenant.
If you have served your tenant with a N12 and then the person who wanted to move into the unit changes their mind, you should notify the tenant right away. Write the tenant a letter explaining the change in circumstance. Inform them that they can disregard the N12 and continue to live in the unit.
If you want to ‘cancel’ the notice but it is too late because the tenant has signed another tenancy agreement and is moving out, you will still have to provide the compensation.
In either situation, there is still a possibility that the tenant files an application against you at the LTB for bad faith and tries to sue you for up to $25,000.
I gave my tenant an N12 notice for my own use. I received an e-mail from the tenant stating that they should be refunded the last month’s rent. Are they correct?
It depends on the situation. If the tenant had paid a last month’s rent deposit when they moved in, and if they are moving at the end of the last month of their occupancy, then they would not pay rent for that month because it would be taken care of by the last month’s rent deposit.
If the tenant is giving you at least 10 days’ notice to end the tenancy in response to your notice, and is moving before the date you specified in the N12 notice, then they only have to pay rent for the number of days that they live in the unit. In some cases the landlord would have to return even more than the last month’s rent. It would depend on how quickly they replied that they were moving out sooner than the date you gave them.
If instead the tenant never paid you a last month rent deposit in the first place, then you would have to clear that up with the tenant using your own documentation from when the tenancy began.
With the passing of Bill 124, or the Rental Fairness Act, 2017, there has been changes made to the Residential Tenancies Act. This is what the Bill says about compensation:
“48.1 A landlord shall compensate a tenant in an amount equal to one month’s rent or offer the tenant another rental unit acceptable to the tenant if the landlord gives the tenant a notice of termination of the tenancy under section 48.” This provision officially came into effect on September 1, 2017 (*Please note that the N12 form, along with the L2 application has been updated and can be found on http://www.sjto.gov.on.ca/ltb/forms/).
Landlords will only be able to give notice for own use where they make a statement that they or their immediate family member (spouse, child or parent) intend to occupy the unit for a period of at least one year, or else they may face repercussions at the Landlord and Tenant Board for giving notice in bad faith.
What are some potential drawbacks or pitfalls to look out for when considering an N12 notice for my own use?
If you are planning to move into the rental unit, please remember that you are likely going to receive a lot of resistance from the tenant, and questions about your intentions to displace the tenants so that you can occupy the space.
You must also be aware of the recent changes as a result of Bill 124, the Rental Fairness Act, 2017, which can be found at this link: http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en&Intranet=&BillID=4755
For example the new rules require a landlord to offer compensation of one month’s rent prior to the termination date, or to offer a replacement unit that is acceptable to the tenant. This came into effect as of September 1, 2017.
The termination date you give on the N12 must be at the end of the lease term. An L2 application to the Landlord and Tenant Board may be filed any time after serving the N12. A sworn affidavit explaining your change in circumstances, and why you now require the unit, must accompany the L2 application.
The typical amount of time it takes to navigate the Board process, from the time you serve the notice, filing the L2 the following week, getting a hearing set about three to five weeks later, and the actual eviction, can take two months or more. An order can take up to 30 days beyond the hearing date to be issued.
You should keep in mind that you must reside in the unit for at least one year as your primary residence. Otherwise, you may be liable for a bad faith application from the tenant for up to one year after they are evicted.
In addition, the law now requires that a landlord compensate a tenant one month’s rent if the tenancy is terminated for the landlord’s own use. This law officially comes into effect on September 1, 2017. Read more about the provision here, at s. 48.1:
It is also beneficial to focus your attention on proving your good faith need to occupy the unit on a long-term or permanent basis.
When evicting a tenant because a family member needs the unit how long does the family member need to live there before I can rent it out again?
A landlord can only terminate a tenancy if he/she requires the rental unit for his/her own occupation or for a family member such as a child, or parent of the landlord or the landlord’s spouse. You cannot terminate the tenancy for any other family member to move in. The law does not specify how long you have to reside in the unit after evicting a tenant for own use, the main point is whether you have given the notice in good faith. A tenant does have up to twelve months to file an application against the landlord with the Board if the tenant believes that you gave the notice in bad faith.
A landlord may terminate a tenancy for personal use at the end of a rental period or term using Form N12. It must be served to the tenant 60 days prior to the end of the rental period or term. A landlord and a tenant may agree to terminate earlier than the prescribed notice period using Form N11.
To terminate a tenancy based on the owner or immediate family member moving in, the family member has to be the owner’s spouse, child, or parent or the spouse’s child or parent.
The owners have an 83 unit apartment building and need to move offices into the building. The best place is on the first floor but there are currently no vacancies. Would a landlord’s own use include using the space for a management office?
N12 is for residential use only and does not work in such a large corporate landlord setting. N13 is a 120 day notice that can be given for the end of a rental period or lease where the landlord intends to convert the premises to permanent non-residential use. Perhaps this is an option for your lawyer/paralegal to explore since it involves paying compensation of 3 months rent and obtaining permits from the municipality.
I’d like to purchase a house containing two apartments. I’d need one for my son to live in, can I break one of the leases?
If both tenants have leases in place, you will not be able to terminate the lease for your son to move in, that can only be done at the end of the lease term. The only thing you can try is asking if the tenant is willing to terminate the lease early in which case you can have them sign an Agreement to Terminate the Tenancy (Form N11).
I would like to terminate the tenancy in Unit A so that I may use it for myself. Unit B is unoccupied, what can I do?
An application to the board based on a Form N12 – Notice to Terminate Tenancy for Personal Use may not be successful since Unit B is available to you. As per the legislative changes that came into effect September 1, 2017 the landlord can offer the tenant the alternative unit to reside in, instead of paying the tenant one month’s compensation.
Interpretation Guideline #12 deals only with the eviction for own use situation, for example, it explains the test to be met is that the landlord must require the unit in good faith, which is closer to “wanting” than “needing” the unit in the eyes of both the Board and the Divisional Court. http://www.sjto.gov.on.ca/documents/ltb/Interpretation%20Guidelines/12%20-%20Eviction%20for%20Personal%20Use.html is where you will find more information on how the Member usually looks at these situations.
I rented out my home on a two year lease while working abroad. I will be returning early and need the unit for my own use. What are my options?
A tenancy can only be terminated for own use at the end of the rental period or term. The Form N12 notice you would give the tenant to take back possession of the premises cannot be given until 60 days before the end of the lease term. Therefore, the tenant would have to agree to vacate before you could break the lease and take possession. If the N12 notice is being given after September 1, 2017, the landlord is required to give the tenant one month’s compensation before the termination date on the notice. Aside from giving compensation, if the landlord has an alternative rental unit available that can be offered to the tenant as well.
If the tenant is in agreement, the best way to terminate is both landlord and tenant signing an N11 agreement – available here http://www.sjto.gov.on.ca/ltb/forms/– to terminate the tenancy. ANY termination date can be agreed upon and used. In most cases however, the tenant would not sign this without some form of compensation from the landlord (2 or more months rent, for example). If the agreement is signed by all tenants, and the tenant fails to move, then a termination order can be obtained quite quickly by filing an L3 application and affidavit with the Landlord and Tenant Board (available from the same web site).
I need to move into a unit in my house, as I have just separated from my partner. Do I have to wait until my tenant’s one year lease is up before doing anything? She is also causing problems in the house and disturbing other tenants.
When there is a fixed term lease agreement, unfortunately the landlord cannot terminate the tenancy based on the reason that the landlord will be moving in. That can only be done at the end of the lease term. All you can do is try to have the tenant agree to terminate the lease early and if she does agree, you would have her sign the Form N11- Agreement to Terminate a Tenancy. If she does not agree to leave and she is causing problems for the other tenants you can proceed to apply to the Board based on the N5 you have given her.
I need the unit for myself. How long must I live in it and does the tenant have a right to re-occupy the unit once I move out?
1) If you need the unit for your own personal use you must give the tenant 60 days notice ending on the last day of the rental period and this must be done on a Form N12. 2) The tenant can refuse to leave after being served this notice even if you have given more than the required time. 3) If the tenant refuses to leave you will have to file an application with the Landlord and Tenant Board to obtain an eviction order. 4) The law specifies that you must reside in the unit for at least one year as your primary residence (Refer to Section 48 (1) of the Residential Tenancies Act). However, when a tenant is evicted based on this reason the tenant has up to twelve months to file an application against the landlord if the tenant believes that you gave the notice in bad faith. 5) You do not have to re-rent the unit to the same tenant once you are finished using it.
I have a tenant in the basement on a weekly rental. I need the unit for my son, how do I give notice?
If you serve a notice for landlord’s own use, the termination date must be at least 60 days from the time you give notice *AND* the termination date must coincide with the end of a tenancy period. So, if they pay rent every Monday, the termination date must fall on a Sunday on the N12 notice of termination.
Do I serve an N12 if I’m selling my property? Is the landlord responsible for the difference in rent so the tenants can find comparable rental property? Under what Tenant Law or By-Laws do these issues come under?
The Residential Tenancies Act is the legislation that governs landlords and tenants in Ontario. Under this law there isn’t a notice the landlord can serve the tenant when the house is put up for sale. The landlord can only serve the form N12 once an Agreement of Purchase and Sale is signed and the purchaser is planning to live in the house. The landlord is not responsible to pay the tenants any difference in rent in these circumstances, as long as there are grounds to terminate the tenancy.
You cannot terminate a tenancy for personal use for anyone else other than the landlord, the landlord’s spouse, child or parent of the landlord or the landlord’s spouse.
A landlord can give a 60 days notice of termination if the unit is required for the landlord’s own use or for the landlord’s spouse, child or parent. This applies if one of the owners require the unit to move in if the landlord is a joint owner, however if it is a corporation the tenancy cannot be terminated for this reason.