LANDLORD & TENANT BOARD

Starting September 21, an Empty Unit After an N12 Presumes Bad Faith

By Jugraj Singh Randhawa August 19, 2026 4 min read

Ontario has filled in a missing number for own-use evictions. On August 8, 2026, O. Reg. 240/26 was published in The Ontario Gazette. Together with Order in Council 1115/2026, that means from September 21, 2026, if a landlord ends a tenancy so they or a close family member can move in — and nobody who qualifies occupies the unit within 60 days — the Landlord and Tenant Board (LTB) will presume the notice was given in bad faith.

A former tenant still had to prove that an N12 (landlord’s own use) was a pretext. The new clock does not replace the rest of the Residential Tenancies Act, 2006 (RTA). It changes who has to explain an empty unit.

What the regulation says

Section 57(6.1) of the RTA — added by Schedule 7 of the Helping Homebuyers, Protecting Tenants Act, 2023 (Bill 97) — applies on a former tenant’s application about a section 48 notice. If no qualifying person occupied the unit within a prescribed period after the tenant left, it is presumed, unless the landlord proves the contrary on a balance of probabilities, that:

the landlord gave the notice in bad faith; and
the unit was not occupied within a reasonable time.

O. Reg. 240/26 sets that period at 60 days:

If the tenant left on or before the termination date on the notice, count 60 days after that notice date.
If the tenant left after the notice date, count 60 days after the day they actually vacated.

The regulation was made July 20, 2026 and filed July 21. It comes into force on the latest of September 21, 2026, the day subsection 4(1) of Bill 97’s Schedule 7 is in force, and the filing date. O.I.C. 1115/2026 names September 21, 2026 for Schedule 7, sections 4 and 11(2). Replacement subsection 57(7) applies (6.1) to a section 57(1)(a) application made on or after that day. Confirm the current text on e-Laws before you file.

Who has to occupy

A section 48 notice is the usual N12 for the landlord’s own use. The people who must occupy are those listed in RTA s. 48(1): the landlord, the landlord’s spouse, a child or parent of either of them, or a caregiver who will live in the building to provide care. The landlord must, in good faith, need the unit for residential occupation for at least one year.

The 60-day presumption is written for section 48 notices and applications under clause 57(1)(a). It does not, on the face of the regulation, apply to a purchaser’s own-use notice under section 49.

flowchart TD A[Landlord serves N12 under RTA s.48 own use] --> B[Tenant vacates because of the notice] B --> C{Did a qualifying person occupy within 60 days?} C -- Yes --> D[No new 60-day presumption - other evidence still matters] C -- No --> E[From Sept 21 2026: bad faith and unreasonable delay are presumed] E --> F[Landlord may still rebut on a balance of probabilities] E --> G[Former tenant may file T5 within one year of moving out] G --> H[LTB may order compensation, moving costs, a fine, or other remedies]

What has not changed

The occupancy clock sits beside older tools, not in place of them. Section 57(5) still creates a separate presumption if, between the notice and one year after the tenant leaves, the landlord advertises the unit for rent, re-rents it, lists it for sale, demolishes it, or converts it.

A former tenant generally has one year after vacating to apply (s. 57(2)). The LTB form is T5 — Tenant Application – Landlord Gave a Notice of Termination in Bad Faith, filed through the Tribunals Ontario Portal. If the Board finds bad faith, section 57(3) still allows orders for extra rent for up to a year, general compensation of up to 12 months of the last rent, reasonable moving and storage costs, a rent abatement, an administrative fine, and other relief.

The presumption is rebuttable. An empty unit for 60 days is not an automatic win — the landlord must explain the delay. An N12 is also not an eviction by itself; the landlord still needs an LTB order if the tenant does not leave. Compensation rules remain a separate issue, including the September 2026 changes in our July post on own-use compensation.

What this means for you

If you moved out after an N12, keep the notice, the termination date, the day you handed back the keys, and anything you later see — a new listing, a different tenant, or an empty house. From September 21, 2026, if a qualifying person has not occupied within those 60 days, the statute supplies a presumption you can put in a T5. You still must file within one year of leaving.

If you are a landlord planning a genuine move-in, treat 60 days as a hard planning date. An empty unit past the clock puts you on the defensive even if your intention was real. Keep occupancy records, and do not advertise or re-rent the unit during the one-year window in section 57(5).

Where to confirm the current rules

Get in touch

If you have received an N12, you already moved out and the unit is sitting empty, or you are a landlord trying to complete a genuine own-use move before September 21, JSR Legals can help you read the notice, the dates, and the filing deadline. Reach us at info@jsrlegals.ca.

This article is general information about Ontario residential tenancy law, current as of August 19, 2026, and is not legal advice for any specific situation. Confirm the current text on e-Laws and with the LTB or a licensed professional before you act.

Written by

Jugraj Singh Randhawa

Immigration & paralegal practitioner at JSR Immigration & Legals, helping newcomers and Ontario residents with their cases.

This post is general information about Canadian immigration and Ontario paralegal matters and is not legal advice. Rules change and every case is different — confirm current requirements for your own situation.