N12 Changes in Ontario 2026: New 120-Day Compensation Rule and 60-Day Occupancy Requirement

N12 Changes in Ontario 2026: New 120-Day Compensation Rule and 60-Day Occupancy Requirement 

Effective September 21, 2026, changes to Ontario's Residential Tenancies Act, 2006 (RTA) affect certain N12 notices given because a landlord, qualifying family member or caregiver requires a rental unit for residential occupation. 

According to the Landlord and Tenant Board (LTB) and the updated RTA provisions, the changes introduce a new compensation exception when sufficient notice is provided and a new rule concerning when the intended occupant must move into the rental unit. 

The N12 Notice Period Has Not Changed From 60 Days to 120 Days 

This is one of the most important points to understand about the new rules. 

Under section 48 of the Residential Tenancies Act, the termination date on a landlord-own-use N12 must generally be at least 60 days after the notice is given. The termination date must also fall on the last day of the rental period or, for a fixed-term tenancy, cannot be earlier than the end of the fixed term.  

Therefore, the legislation has not simply changed the minimum N12 notice period from 60 days to 120 days. 

Instead, 120 days is important because it can affect whether compensation must be provided. 

New 120-Day N12 Compensation Rule 

According to the LTB's updated N12 instructions, where an N12 is given for landlord's own use and the termination date is at least 120 days after the notice is given, the landlord is no longer required to: 

• pay the tenant compensation equal to one month's rent; or  

• offer the tenant another rental unit acceptable to the tenant.  

This applies to qualifying landlord-own-use notices given on or after September 21, 2026.  

Where the landlord provides less than 120 days' notice, the existing compensation requirement continues to apply. The landlord must generally pay the tenant one month's rent or offer another acceptable rental unit. 

New 60-Day Occupancy Rule 

The September 21 changes also introduce an important rule concerning what happens after a landlord-own-use N12. 

Ontario Regulation 240/26 establishes a 60-day period relevant to determining whether an N12 is presumed to have been given in bad faith. 

If the tenant leaves the rental unit on or before the N12 termination date, the intended occupant generally has 60 days after the termination date to take occupancy. 

If the tenant leaves after the N12 termination date, the 60-day period runs from the date the tenant actually vacates.  

What Happens If the Intended Occupant Does Not Move In? 

According to the LTB's updated Interpretation Guideline 12, if the intended occupant does not take occupancy within the applicable 60-day period, the N12 will be presumed to have been given in bad faith in the context of the applicable T5 proceeding.  

A presumption of bad faith does not necessarily determine the outcome by itself. The LTB states that the landlord has an opportunity at the T5 hearing to provide evidence to rebut that presumption.  

The 60-day rule also does not apply to N12 notices given for a purchaser's use of the rental property.  

Good Faith Is Still Required 

The new rules do not remove the underlying good-faith requirement. 

Section 48 of the RTA permits an N12 where the landlord in good faith requires possession for residential occupation by the landlord or another person specified by the legislation. The LTB's Interpretation Guideline 12 states that, at an L2 hearing, the landlord must establish on a balance of probabilities that the rental unit is genuinely required for residential occupation by the specified person for at least one year.  

Landlords should therefore keep appropriate records relating to the intended occupation and the N12 process in case the circumstances are later considered by the LTB. 

Overall, the September 21, 2026 changes introduce important new rules for landlord-own-use N12 notices, particularly regarding the 120-day compensation exception and the new 60-day occupancy requirement. Landlords should carefully review the current Residential Tenancies Act requirements and updated LTB forms and instructions before serving an N12.