N12 Eviction for Purchasers Use
When purchasing a tenanted property in Ontario, you or your immediate family may wish to occupy the property as your home. In these cases, the law permits the use of a Form N12 – Notice to End Tenancy for Purchaser’s Own Use.
However, this process is complicated and demands strict compliance with notice periods, compensation requirements, statutory timing, and proof of good faith. Errors can delay possession for months, result in dismissed applications, and even lead to bad faith claims by tenants.
At Haider Khan Legal P.C., we represent buyers, sellers, and landlords in navigating this process correctly and efficiently, ensuring you meet every legal requirement while protecting your interests. We also assist and advise real estate lawyers and real estate agents with regards to tenant issues arising in their course of work.
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Our all-inclusive package covers:
A legal fees payment plan of up to three (3) months.
Preparation and proper service of the N12 Notice. Process serving fees are included.
Filing the L2 eviction application with the LTB (our fee includes the $186 LTB filing fee).
Drafting, organizing and serving evidence.
Preparing and coordinating relevant witnesses.
Attending the LTB hearing and representing you before the adjudicator.
Securing an eviction order.
If the tenant still refuses to leave after the order is granted, we will prepare and file sheriff enforcement paperwork (sheriff fees are not included and payable directly by the landlord to the Sheriff of your jurisdiction).
Please note that this fee only applies to standard tenant evictions for personal use. If your case is complex or requires extra steps, we reserve the right to quote an additional or increased fee. -
An N12 for purchasers use may be served where:
The property contains no more than three residential units (houses, duplexes, triplexes, or qualifying condominiums);
The purchaser, their spouse, their child or parent, or their spouse’s child or parent, or a caregiver for these individuals, will occupy the property as a primary residence for at least one year;
The seller/landlord serves the N12 notice on the purchaser’s behalf; and
The tenant is provided one month’s rent as compensation or is offered another acceptable rental unit in the same complex.
The N12 can only be served after the Agreement of Purchase and Sale (APS) is executed.
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When selling a tenanted property where the buyer intends to take vacant possession, the APS should always include a Schedule (commonly Schedule A, B or C) that protects the seller.
This Schedule should:
Shift liability to the purchaser if they fail to personally occupy the unit for the required 12 months;
Indemnify the seller against any claims, fines, or bad faith applications (T5) brought by the tenant; and
Clarify that the seller’s sole obligation is to serve the N12 properly and pay the one-month compensation, with all further risk resting on the purchaser.
Sample Schedule Clause: “Upon vacant possession being provided to the Buyer, the Buyer or the Buyer’s immediate family agrees to take possession of and occupy the property forthwith thereafter. The Buyer agrees to provide the Seller with a written indemnity on completion, indemnifying the Seller from all actions, causes of action, claims and demands of any kind whatsoever, that may occur in the event that the Buyer does not take possession of and occupy the property as aforesaid. The Seller agrees to hand deliver the N12 Notice to the tenants not later than [insert date], with a lawful termination date for both tenants of [insert date].” -
The Form N12 must be served at least 60 days before the termination date, and the termination date must fall on the end of a rental period or lease term.
Tenants served with an N12 may:
Move out earlier, by giving at least 10 days’ written notice; and
Still receive the full one-month rent compensation, even if they vacate before the 60 days expires.
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The purchaser (or family member/caregiver) must demonstrate a genuine, honest intention to occupy the property as a primary residence for at least one year.
“Good faith” refers to intent, not motive—the purchaser does not need to justify why they want to move in, only that they genuinely plan to do so. The intended occupant must sign a sworn affidavit confirming this intention, filed with the LTB.
The LTB may also consider:
Whether the purchaser or family member has relocation plans, employment or education ties to the area;
Whether there is a history of improper or repeated N12 notices; and
Whether the unit is likely to be re-rented at a higher rate, suggesting bad faith.
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The seller serves the N12 on behalf of the purchaser (60 days’ notice).
The tenant is compensated with one month’s rent (or offered another unit).
If the tenant does not vacate voluntarily, the seller files an L2 application with the LTB.
The purchaser or intended occupant swears an affidavit confirming good faith intent.
At the hearing, the landlord and purchaser present evidence and witnesses.
If successful, the LTB issues an eviction order, and if necessary, the Sheriff enforces the eviction.
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LTB delays mean that sometimes the eviction isn’t finalized before closing. If this occurs:
The Original N12 Remains Valid. If the N12 was properly served by the seller after the Agreement of Purchase and Sale was signed, the notice remains effective, even if the sale closes before the eviction is finalized.
The law (s.49(1) and s.69(1) of the Residential Tenancies Act) allows the seller, as the party who served the notice, to continue the L2 eviction application, even after the purchaser becomes the new landlord.
The process does not restart and a new N12 under s.48 is not required, as confirmed in Hui Shao Chen v. Xu (2023).
The Seller Still Pays Compensation: Under s.49.1(2) of the RTA, even after the sale closes, the seller remains responsible for the one-month rent compensation owed to the tenant for the N12 notice. This is why your APS should clearly address compensation responsibilities.
The Purchaser Must Wait for the Eviction: Once the sale closes, the purchaser becomes the new landlord and inherits the tenancy, but cannot force the tenant out themselves.
The eviction proceeds through the LTB under the seller’s L2 application.
The purchaser must be prepared for potential months of additional delay before receiving vacant possession (in Hui Shao Chen, the eviction wasn’t finalized until five months after closing).
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Purchasers should:
Make vacant possession a condition of closing in the APS. If the seller cannot deliver, the seller must:
Cover carrying costs and expenses (temporary housing, storage, interest) until the property is vacant; or
Allow the purchaser to terminate the deal and recover the deposit and related costs.
Sellers should:
Include a clause in the APS shifting all post-closing eviction liability and costs to the purchaser if they choose to close without vacant possession.
Clarify that the seller’s role is limited to serving the notice and paying compensation; all remaining eviction steps rest with the purchaser.
Why Choose Haider Khan Legal?
Purchaser-use evictions are closely scrutinized and frequently challenged. Even minor technical errors—incorrect names, addresses, timing, or insufficient evidence—can lead to dismissal, delays, and tenant claims.
Our experienced lawyers and paralegals will:
Draft and properly serve the N12 notice;
Prepare affidavits and coordinate witnesses to establish good faith;
Represent you before the LTB to secure possession; and
Guide you through Sheriff enforcement and risk management to protect you from bad faith claims.
If you are buying a property and require the tenant to vacate so you or your family can move in, we will ensure the process is legally compliant, efficient, and protects your interests. We also assist realtors and real estate lawyers with these transactions to prevent costly errors.
Contact us today to get started.
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