The N12 notice—officially known as the "Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit"—is one of the most powerful tools in Ontario's rental law. When used legitimately, it allows landlords to reclaim their property for genuine personal use. However, recent analysis of Landlord and Tenant Board (LTB) decisions reveals a troubling pattern: landlords increasingly abuse N12 notices to circumvent rent control, evict long-term tenants, and increase rental income through bad faith evictions.
Understanding Bad Faith N12 Evictions
A bad faith N12 eviction occurs when a landlord serves a personal use notice without genuinely intending to occupy the unit themselves or have a qualifying family member do so. Instead, these landlords use the N12 as a tool to:
- Evict tenants paying below-market rent
- Re-rent units at higher prices
- Avoid the lengthy process of legitimate evictions
- Circumvent rent control protections
The financial and emotional consequences for tenants can be devastating, while the legal penalties for landlords caught in bad faith can reach tens of thousands of dollars.
The Legal Framework and Presumption of Bad Faith
Ontario's Residential Tenancies Act includes specific protections against bad faith N12 notices. Under section 57(5), a rebuttable presumption of bad faith is triggered when:
- The rental unit is advertised for rent within one year of the tenant vacating, OR
- A person specified in the N12 notice doesn't move in within a reasonable time
Once this presumption is triggered, the burden shifts to the landlord to prove they acted in good faith. If they fail to rebut the presumption, tenants are entitled to significant remedies.
Red Flags: Identifying Bad Faith N12 Notices
1. Timing Coinciding with Rent Disputes
Many bad faith N12 cases involve landlords who serve the notice after tenants refuse illegal rent increases or assert their rights. In JK-v-Hayek-20171121, tenants had "agreed to a proposed rent increase and set up a meeting with the Landlord to sign the required legal changes. At the meeting, instead of continuing the tenancy, the Landlord served the Tenants with the N12 Notice."
The Board found this N12 was served in bad faith, with the landlord's "primary motive was to increase rent revenue." The tenants were awarded $6,130.66 in compensation.
2. Quick Re-rental After Tenant Departure
The most obvious sign of bad faith is when landlords immediately re-rent the unit after tenants vacate. In laroque-v-argarwal-20240705, the "rental unit was advertised and rented to another family within two months" of the tenants vacating. The landlord was ordered to pay $11,289.00 for this bad faith eviction.
Similarly, in Pedro-v-Gadea-20220209, the landlord "listed the unit for rent 8 months after Tenants vacated," triggering the presumption of bad faith. The tenants received $10,800 in compensation.
3. Property Listed for Sale Shortly After
Some landlords serve N12 notices as part of preparing properties for sale, never intending personal use. In merrow-v-gerrie-20231005, the "property was listed for sale on May 17, 2021 and sold on June 23, 2021" shortly after the tenant vacated. The landlord was ordered to pay $8,753.36.
4. Pattern of Harassment Before N12 Service
Bad faith N12 notices often follow periods of landlord harassment. In liles-v-bhachu-20241204, the "Landlord left voicemails and sent several emails over a period of many years during COVID and while Tenant was pregnant, harassing Tenant to move out." The landlord ultimately served multiple N12 notices and was ordered to pay $21,789.20 plus a $1,000 fine.
The Financial Consequences for Landlords
When landlords are caught serving bad faith N12 notices, the financial penalties can be severe:
Substantial Monetary Awards
- $21,789.20 plus $1,000 fine in liles-v-bhachu-20241204
- $11,289.00 in laroque-v-argarwal-20240705
- $10,800 in Pedro-v-Gadea-20220209
- $8,753.36 in merrow-v-gerrie-20231005
- $7,953.00 in habhab-v-liu-20240205
- $6,130.66 in JK-v-Hayek-20171121
Components of Bad Faith Awards
LTB awards for bad faith N12 evictions typically include:
- Rent Differential: The difference between the tenant's old rent and new rent for up to one year
- Moving Expenses: Actual costs of relocating, including storage and transportation
- General Compensation: Additional damages for the disruption and harm caused
- Application Filing Fees: Reimbursement for the cost of bringing the application
- Administrative Fines: Up to $25,000 for serious violations
Additional Consequences
Beyond monetary awards, landlords face:
- Administrative penalties from the LTB
- Damage to reputation and credibility in future proceedings
- Legal costs if they hire representation
- Interest charges on unpaid awards
When Landlords Successfully Defend N12 Notices
Not all N12 challenges succeed. Landlords can rebut the presumption of bad faith by demonstrating:
Genuine Change in Circumstances
In gagne-v-ahmed-20240726, the landlord "genuinely intended to move into the rental unit for personal use when the N12 notice was given, but his plans changed due to an unforeseen change in his employment situation." The application was dismissed because the landlord successfully rebutted the presumption.
Actual Occupation of the Unit
In gibel-v-abumeeiz-20240205, the "Landlord testified he moved into the unit after Tenants vacated and occupied it for 13 months." This evidence successfully rebutted the bad faith presumption.
Credible Evidence of Intent
In coates-v-couturier-20241126, the landlord "successfully rebutted the presumption of bad faith by providing evidence of changed circumstances" including her sons' plans changing and increased mortgage payments.
The Three-Part Test for Bad Faith
To succeed in a bad faith N12 application, tenants must prove:
- The N12 was served in bad faith
- The tenant moved out as a result of the N12
- The specified person didn't move in within a reasonable time
This test was clearly articulated in MD-and-FD-v-EM-20190410, where "The Tenants successfully met the three-part test under section 57(1)(b) of the Residential Tenancies Act, 2006."
Extreme Cases of Landlord Misconduct
Some cases reveal particularly egregious landlord behavior:
Multiple Bad Faith Notices
In ML-and-DG-v-C-Aka-AP-and-CP-20160407, landlords "had no understanding of notices of termination, rent increases or security of tenure" and "wanted to raise the rent unlawfully and gave N12 notices of termination in bad faith." They were ordered to pay $4,201.44 plus a $500 administrative fine.
Immediate Re-rental
In F-v-H-20190327, the landlord "advertised the rental unit for rent on April 12, 2018" just months after the tenant vacated, and "sold the rental unit on July 27, 2018." The landlord's father never moved in, confirming the bad faith nature of the eviction.
Harassment Combined with Bad Faith
The patel-v-kang-20240830 case involved a landlord who "constantly nagged tenants to leave" and "refused maintenance" before serving a bad faith N12 notice. The tenant was awarded $5,053.00.
Protecting Yourself as a Tenant
Document Everything
- Keep records of all communications with your landlord
- Document any harassment or pressure to leave
- Take photos of maintenance issues or property conditions
- Save copies of rental advertisements if you find your unit listed
Know the Timeline
- You have one year from vacating to file a T5 application for bad faith eviction
- The presumption of bad faith is triggered if the unit is advertised within one year of your departure
- Specified persons must move in within a "reasonable time" (typically within a few months)
Seek Legal Advice
Given the complexity of bad faith cases and the substantial remedies available, consider:
- Consulting with a paralegal or lawyer
- Contacting tenant advocacy organizations
- Getting help with evidence gathering and application preparation
Red Flags for Landlords
Landlords should be aware that certain actions create strong evidence of bad faith:
- Serving N12 notices after rent disputes
- Advertising units for rent shortly after tenants vacate
- Failing to have the specified person move in promptly
- Combining N12 notices with harassment or pressure tactics
- Serving multiple N12 notices over time
Best Practices for Legitimate N12 Notices
When landlords have genuine need for personal use:
Ensure Genuine Intent
- Have concrete plans for occupancy
- Be prepared to prove intent with evidence
- Understand the one-year occupation requirement
- Consider timing and circumstances carefully
Follow Proper Procedures
- Use the correct N12 form
- Provide proper notice periods (60 days)
- Pay required compensation (one month's rent)
- Serve notices according to RTA requirements
Maintain Documentation
- Keep records of why personal use is needed
- Document any changed circumstances
- Preserve evidence of good faith intent
- Be prepared to defend the notice if challenged
The Broader Impact
Bad faith N12 evictions represent a serious abuse of the landlord-tenant relationship and undermine the protections built into Ontario's rental housing system. They:
- Displace vulnerable tenants who often struggle to find affordable replacement housing
- Circumvent rent control protections designed to ensure housing stability
- Create housing instability in an already challenging rental market
- Erode trust between landlords and tenants
The substantial financial penalties imposed by the LTB reflect the seriousness of these violations and serve as both compensation for harmed tenants and deterrent for would-be bad actors.
Key Takeaways
- Bad faith N12 evictions are a serious violation with substantial financial consequences
- The presumption of bad faith is triggered when units are re-rented within one year
- Awards regularly exceed $10,000 and can reach over $20,000
- Tenants have strong legal protections but must act within one year
- Documentation and evidence are crucial for both sides
- Legitimate personal use requires genuine intent and proper procedures
- The LTB takes these violations seriously and imposes significant penalties
Understanding bad faith N12 evictions is crucial for both landlords and tenants in Ontario's rental market. For tenants, recognizing the warning signs and knowing your rights can help protect against illegal evictions. For landlords, understanding the severe consequences of bad faith conduct should reinforce the importance of using N12 notices only when genuinely needed and following all legal requirements.
The cases analyzed here demonstrate that while N12 notices serve a legitimate purpose in Ontario's rental system, their abuse comes with serious legal and financial consequences that can far exceed any short-term benefits landlords might seek to gain.
