Bad Faith Eviction

How Landlords Can Protect Themselves

By Puneet Shroff

An N12 notice can be a legitimate tool where a landlord, certain family members, a caregiver, a purchaser, or certain purchaser family members genuinely require the rental unit for residential occupation. However, N12 notices are also closely scrutinized by tenants and the Landlord and Tenant Board. If the notice is not handled properly, a landlord may face a bad faith claim after the tenant moves out.

A bad-faith N12 claim usually arises when the tenant believes the stated person never genuinely intended to move into the rental unit, or when the unit is later advertised, rented to someone else, listed for sale, or used for another purpose. These claims can be serious. The Landlord and Tenant Board may order significant monetary remedies, including rent differential, moving expenses, rent abatement, general compensation, and administrative fines.

For landlords, the best protection starts before the N12 is ever served. The intended occupant should have a real, genuine, and documented plan to move into the rental unit. Landlords should avoid using an N12 as a shortcut to deal with a difficult tenancy, to increase rent, to sell the property vacant, or to pressure a tenant to leave.

Documentation is critical. Landlords should keep records showing why the rental unit is needed, who intends to occupy it, when they intend to move in, and what steps are being taken to make that happen. Depending on the circumstances, helpful evidence may include written communications, moving plans, change-of-address records, utility records, insurance updates, renovation or repair records related to ordinary move-in preparation, and proof that the intended occupant actually occupied the unit.

Landlords should also ensure that the N12 is completed, served, and supported correctly. The proper person must be identified, the termination date must be calculated properly, and any required declaration or compensation obligations must be addressed. With recent Bill 60 changes, compensation requirements may be different in certain landlord-own-use cases where at least 120 days’ notice is given. However, these changes do not remove the need for good faith. A landlord still needs a genuine intention for the unit to be occupied as stated in the notice.

After the tenant leaves, landlords should be very cautious about what happens next. Advertising the unit for rent, re-renting it, listing the property for sale, or changing plans shortly after the tenant vacates can create serious risk. Sometimes circumstances genuinely change, but those changes should be carefully documented and addressed before any new steps are taken.

N12 matters are highly fact-specific. A properly prepared N12 can help protect a landlord’s rights, but a poorly planned one can create exposure long after the tenant has moved out.

If you are considering serving an N12, or if you are facing a bad faith claim, Puneet Shroff can assist with reviewing your circumstances, preparing the required documents, and representing you before the Landlord and Tenant Board. Contact Puneet at pshroff@sorbaralaw.com.