Eviction for Landlord's Own Use: Tips for Successfully Filing an N12 Notice with the Ontario Landlord and Tenant Board

Filing an N12 notice can feel overwhelming for landlords. While it's a common tool for managing rental properties, it is often misused or misunderstood. Grasping the details of this notice and how to submit it correctly is crucial for a successful application under the Residential Tenancies Act. In this post, we will highlight key guidelines, common missteps, and provide practical tips for landlords to ensure a smooth filing process.

Understanding the N12 Eviciton Notice for Landlord's Own Use

The N12 notice is a formal document from the Landlord and Tenant Board (LTB), notifying tenants that a landlord (or a family member, etc) intends to occupy the rental unit. This notice must be filled out precisely to avoid complications or claims of bad faith.

According to Section 57 of the Residential Tenancies Act, tenants have the right to file a T5 application if they believe the N12 was improperly served. When this occurs, tenants may receive compensation for moving costs, differences in rent for up to a year, and the Landlord could potentially face fines.

Common Landlord Errors When Filing an N12 Eviction Notice

One frequent mistake a landlord can make is miscalculating the termination date. It must be at least 60 days after delivering the notice and should align with the last day of the rental payment period.

For example, if rent is due on the first of the month and an N12 notice is served on September 15th, the termination date should be November 30th. If the landlord incorrectly sets the termination date as November 15th, the notice would be deemed invalid, leading to unnecessary stress, lost time, and ultimately a need to start again.

Detailed Rules for Serving an N12

When preparing to serve an N12 notice, landlords should follow these essential rules:

1. Written Notice: Ensure that the N12 notice is accurate, including spelling of both the landlord's and tenant's names and the addresses.

   
   

2. Signature: The notice must be signed by the landlord or their authorized agent.

   
   

3. Delivery Method: The notice can be delivered in person, via mail, or through electronic means if the tenant agrees.

   
   

4. Declaration Requirement: A declaration affirming the landlord's or family member's intention to reside in the rental unit for at least one year must be provided. The Landlord and Tenant Board provides a form for that declaration here.

   
   

5. Avoiding Claims of Bad Faith: Landlords should maintain transparency about their intentions and gather evidence to support a genuine need for the unit to minimize bad faith claims.

   
   

Best Practices for Landlords

While handling the N12 eviction process may be daunting, here are a few best practices to help landlords ease the eviction journey:

1. Documentation: Keep detailed records of all interactions with tenants regarding the N12 eviction notice, including emails, letters, and phone calls. This can serve as evidence if any disputes arise.

   
   

2. Proof of Intent: Always be prepared to demonstrate real intent to occupy the unit. Evidence may include changes in your personal circumstances, such as job relocation or family structure changes. In the case of Feeney v. Noble the court ruled that "good faith is a genuine intention to occupy the premises and not the reasonableness of the landlord's proposal."

   
   

3. Consult Legal Guidance: It’s wise to consult with a paralegal who focuses on residential tenancies. This can help ensure compliance with the rules and lower the risk of unforeseen complications.

   
   

4. Consider Tenant’s Needs: Approach the process with empathy. Acknowledging the tenant’s situation can foster cooperation and maybe even an N11 agreement to terminate. Clear communication about expectations can prevent misunderstandings, and an N11 can be a productive and time saving solution for everyone. Check out our blog post about the N11 agreement here for more information.

   
   

5. Plan for Potential Appeals: Anticipate that tenants may challenge the eviction. Be familiar with the T5 process to effectively respond to any appeals or complaints. You can read more about the T5 in our blog here.

   
   

Motive vs Intent

Intent is about a specific plan or aim as one's goal or objective, in the case, the plan to occupy the unit or property. A motive is the reason that they did it. With the decisions in Feeney and Salter, motive is largely irrelevant. As an example, this would mean that a Landlord would be entitled to choose which tenant to evict based on any criteria they choose (including choosing to evict the tenant paying the lowest rent) as long as they had a sincere intent to occupy the property or unit.

When does Motive Matter?

While the Divisional Court has concluded that the "good faith" requirement means the landlord simply intends to occupy the rental unit; you can't overlook motive entirely. In Fava v. Harrison, 2014 ONSC 3352, the Divisional Court said: 

“We accept, as reflected in Salter v. Beljinac, 2001 CanLII 40231 (ON SCDC), that the motives of the landlord in seeking possession of the property are largely irrelevant and that the only issue is whether the landlord has a genuine intent to reside in the property. However, that does not mean that the Board cannot consider the conduct and the motives of the landlord in order to draw inferences as to whether the landlord desires, in good faith, to occupy the property.”

Consequences of Incorrect N12 Filings

Outside of the usual concerns that the Landlord and Tenant Board might dismiss your application for an error in the N12 Notice, it is important to say that an N12 form is based in "Good Faith." In Canadian law, parties in a contract are required to act honestly. Tenants can file a T5 if they believe an N12 or N13 notice was served in bad faith, up to a year after moving out.

In essence, a T5 allows the tenant to seek compensation for the landlord lying about needing the unit for the requested purpose. If the tenant moved because they got an N12 or N13, the three most common remedies tenants request are:

Moving expenses could include anything from the rental of a U Haul van to the costs of professional movers and packers depending on what the tenant paid to move.  Storage expenses are commonly ordered where a tenant has had to rent a storage locker for the contents of the unit while they wait for a new rental to become available as part of the move. Finally come the administrative fines from the board, these have a maximum of $35,000.00 on their own.

Final Thoughts

The N12 notice can be a vital tool for landlords, but misuse is often suspected and using this eviction option should be approached carefully. By recognizing common pitfalls, adhering to best practices, and understanding the legal framework, landlords can significantly reduce complications.

It is critical to treat this process with thoroughness and respect. Ensuring accurate documentation and genuine intentions not only helps to avoid legal issues but also promotes fair interactions with tenants. By mastering the N12 notice process, landlords can effectively manage their housing needs while upholding a professional relationship with their tenants.

As always, remember that this blog should not be taken as legal advice and is no substitute for a consult about your specific facts. If you have questions about the N12 Form, call Jon today at 519-564-3242 to discuss how this could apply to you.