Ontario N12 Bad Faith Eviction Penalty: What Happens If You Don't Move In

Who Must Occupy, and for How Long

For landlord own-use under Section 48, the intended occupant must genuinely intend to live in the unit for at least 12 consecutive months and must move in within 60 days after the termination date or, if later, the tenant's actual move-out date. The landlord files the required sworn affidavit with the L2 application. For purchaser use under Section 49, the purchaser must genuinely intend residential occupation, but the RTA does not set a one-year minimum occupancy period or the 60-day move-in presumption.

If the intended occupant doesn't fulfil this commitment, the former tenant can file a Form T5 application claiming the N12 was served in bad faith.

The 60-Day Presumption Window

For landlord own-use notices under Section 48, O. Reg. 240/26 presumes bad faith if the intended occupant does not move in within 60 days after the termination date or, if later, the tenant's move-out date. Separate statutory presumptions can apply if any of the following occurs during the period from when the notice is given until one year after the tenant vacates:

• The unit is advertised for rent or sale
• The landlord enters into a new tenancy agreement with someone else
• The unit is demolished or converted to non-residential use

The separate one-year presumption window runs from service of the N12 until one year after the tenant vacates. These statutory presumptions apply to landlord own-use notices under Section 48, not purchaser-use notices under Section 49. A former tenant may still bring a T5 about a purchaser-use notice and prove bad faith on the evidence.

"Presumed" means the LTB assumes bad faith unless the landlord proves the contrary on a balance of probabilities. The landlord can present evidence that the notice was given in good faith.

What the Former Tenant Can Claim

Under Section 57 of the RTA, the remedies for a successful T5 bad-faith application are substantial:

Rent differential: The difference between the tenant's old rent and their new rent, for up to 12 months. If the tenant was paying $1,800 and now pays $2,500, that's $700 per month times 12 — $8,400.

Moving and storage expenses: Documented costs of the move that the N12 forced.

General damages: Compensation for disruption, inconvenience, and any hardship caused by the bad-faith eviction. Up to one year's rent.

Administrative fines: The LTB can impose an administrative fine payable to the Board up to the greater of $10,000 and the Small Claims Court limit, currently $50,000. This is separate from compensation paid to the tenant.

A bad-faith finding on a high-rent Toronto unit can easily result in a five-figure order against the landlord.

How Bad Faith Gets Discovered

Former tenants find out through:

• Seeing the unit listed for rent on Kijiji, Facebook Marketplace, or Realtor.ca within the presumption window
• Neighbours reporting that the unit is vacant or occupied by different tenants
• Real estate listings showing the property back on the market
• The landlord filing another N12 for a different unit in the same building, raising questions about the pattern

The T5 application can be filed within one year after the former tenant vacated.

What Counts as a Legitimate Change of Plans

Genuine bad faith is different from circumstances that changed. If a family member who genuinely intended to move in gets a job transfer, becomes ill, or faces another life event that prevents occupancy, that's a defence — but you'll need evidence. Plans that were never real, convenience evictions to jack up the rent, or N12 notices served as negotiating pressure don't hold up.

The LTB looks at the totality of the circumstances: when the N12 was served, what happened to the unit after the tenant left, how quickly it was relisted, and whether the landlord's story is consistent.

Protecting Yourself

If you're serving an N12 in good faith — you or a family member genuinely intends to live in the unit — the protections are straightforward:

1. For landlord own-use under Section 48, make sure the intended occupant moves in within the statutory 60-day period
2. For landlord own-use under Section 48, avoid advertising the unit for rent or sale, re-renting, demolishing, or converting it between N12 service and one year after the tenant vacates unless you have evidence to rebut the presumption
3. Keep documentation of the occupant's residency (utility bills, change of address, insurance)
4. If circumstances change and the occupant cannot follow through, document the reason contemporaneously

Our Ending a Tenancy in Ontario guide covers the bad-faith framework, the O. Reg. 240/26 presumption rules, and the documentation checklist for protecting yourself against a T5 application.

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