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 immediately. 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 as of September 1, 2021, the tenant can get an order against you for the following: an order to pay the former tenant an amount of increased rent for up to 1 year, an amount of up to 12 months’ rent charged to the former tenant, an amount for reasonable out-of-pocket expenses, a maximum administrative fine of up to $35,000 which is the current jurisdiction of the Small Claims Court, and other penalties as deemed appropriate by the adjudicator.