The New N12 Rule Doesn’t Apply to Purchasers

Last week I was a guest on the Tom Storey Show. We talked about HST rebates and the recent changes at the Landlord and Tenant Board.

One point came up that I think every Realtor needs to have straight.

It’s about the N12 Form. Most of us know it as eviction for personal use.

The rule has always had two parts.

The termination date has to be at least 60 days away and fall at the end of a rental period.

And the landlord has to pay the tenant compensation equal to one month’s rent, or offer them another unit they find acceptable.

As of September 21, there’s a second option.

If the landlord gives at least 120 days’ notice, they don’t have to pay the compensation.

It’s a trade. The tenant gets more time to plan. The landlord saves the month’s rent.

– – –

Here’s the part that matters for your deals.

This option only exists when the landlord, or their immediate family, is the one moving in.

It does not apply to a purchaser.

When a tenanted property sells and the buyer intends to move in, the seller gives the N12 on the buyer’s behalf. That notice falls under a different section of the Residential Tenancies Act, and that section wasn’t changed.

So it doesn’t matter if the closing is 60 days out or 120. The one month’s rent is still owed to the tenant.

And the APS should still say who responsible for paying it.

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