No, not on its own. Ontario only lets you end a tenancy for "landlord's own use" if you or an immediate family member genuinely intends to move into the unit, and you have to pay the tenant compensation first. Using an N12 solely to hand a buyer vacant possession is bad faith, and it can cost you up to twelve months' rent in compensation to the tenant plus provincial fines as high as $100,000 for an individual. Most Toronto landlords selling a tenanted condo instead sell it with the tenant in place or negotiate a voluntary move-out agreement.
If you bought a pre-construction condo in the last few years and it's tenanted, you've probably wondered whether you can just serve the tenant notice, get the unit empty, and list it for more money as a vacant, move-in-ready home. It's a reasonable question. Vacant units sell to a wider pool of buyers and often at a better price than tenanted ones.
But it's also the single most common mistake I see investor-sellers make in this market, and it's an expensive one.
Ontario's Residential Tenancies Act gives you exactly one route to end a tenancy so you, personally, can use the unit: the N12 notice, for landlord's own use. It exists so a landlord (or their spouse, child, parent, or a caregiver for one of them) can move into a property they own. It was never designed as a way to clear a unit for a sale.
Here's where landlords get into trouble. A buyer wants vacant possession, so the seller serves an N12 claiming they or a family member plan to move in, the tenant leaves, and the unit gets listed and sold to someone else entirely. That's a bad-faith eviction, and Ontario has been cracking down on it hard.
If a tenant challenges the eviction and the Landlord and Tenant Board finds it was made in bad faith, you're looking at:
That's before you factor in the months of delay while the case works through the Board, and the fact that a challenged N12 can hold up your closing entirely if a buyer is waiting on vacant possession.
This is exactly the situation a lot of Connect clients are facing right now. If your unit closed a few years ago and rent hasn't been covering the mortgage, condo fees, and property tax, selling can be the right call. The mistake is assuming an N12 is the fast, clean way to get there.
You have real options here. None of them involve serving a notice you don't intend to honour.
1. Sell the unit tenanted, as an investment property.
Plenty of buyers, especially other investors, want a unit with a paying tenant already in place. It's an income-producing asset from day one, no vacancy gap, no re-leasing costs. Your buyer pool is smaller than for a vacant unit, and your price may reflect that, but the transaction is clean and there's no eviction risk attached to your closing.
2. Negotiate a mutual agreement to end the tenancy (Form N11).
An N11 is voluntary on both sides. You offer the tenant compensation, often called "cash for keys," to agree to a specific move-out date. Once both of you sign, it's binding. Your tenant is under no obligation to accept, and you can't pressure or threaten them into signing, but many tenants are open to a fair offer, especially with enough notice and a reasonable amount on the table. Many purchase agreements are written conditional on the seller delivering a signed N11 within a few business days, which protects both sides.
3. Use an N12, but only if it's genuinely true.
If you or an immediate family member actually intend to move into the unit for at least twelve months, the N12 is the right tool and it's completely legitimate. You'll owe the tenant one month's rent or a comparable unit as compensation, and if you list the unit for rent again within twelve months of the tenant leaving, they have the right of first refusal at their old rent. Follow through on the move-in. That's what separates a legitimate N12 from the kind that gets challenged.
Here's the honest version most listings won't tell you: selling tenanted or negotiating an N11 usually takes longer to get to a vacant closing than sellers expect, and it's still faster and cheaper than a contested N12 that ends up in front of the Board.
A clean N11 negotiated early, ideally before you even list, can put you in a strong position: vacant possession secured, no legal exposure, and the wider buyer pool that comes with an empty unit. Start that conversation with your tenant as early as possible, well before your listing goes live, so you're not negotiating under time pressure with a closing date looming.
If your tenant isn't interested in leaving on any terms, pricing and marketing the unit as tenanted, rather than fighting for vacant possession, is usually the faster and cheaper path to a sale.
This isn't legal advice, and every tenancy situation has its own wrinkles. Talk to a landlord-tenant lawyer or paralegal before you serve any notice, and loop in your realtor early so your listing strategy and your tenancy timeline are working together instead of against each other.
Can I evict a tenant to sell my Toronto condo faster?
Not legally, no. An eviction notice served only to speed up a sale, with no genuine intention for you or a family member to move in, is considered bad faith under Ontario's Residential Tenancies Act and can result in compensation orders and provincial fines.
What happens if I use an N12 in bad faith in Ontario?
If the Landlord and Tenant Board finds the N12 was issued in bad faith, it can order you to pay the former tenant up to twelve months' rent plus moving costs, and you can face separate provincial fines of up to $100,000 as an individual or $250,000 as a corporation under Bill 97.
Do I have to compensate my tenant to get vacant possession?
Yes, in almost every legitimate path. A genuine N12 requires one month's rent or a comparable unit as compensation. A voluntary N11 agreement typically involves a negotiated cash-for-keys payment. There's no free route to vacant possession if a tenant doesn't want to leave.
Can I sell my Toronto condo with a tenant still living in it?
Yes. Selling tenanted is common, especially to other investors who want an income-producing unit from closing day. It's often the simplest option if your tenant has no interest in moving and you don't want the delay or risk of pursuing vacant possession.
How long does the N12 eviction process take in Ontario?
If the tenant disputes it, expect months, not weeks. The Landlord and Tenant Board is backlogged, and a contested N12 requires a hearing before an eviction order is issued. That timeline alone is a reason many sellers choose to sell tenanted or negotiate an N11 instead.
If you're weighing whether to sell your tenanted Toronto condo now, hold it, or work out a move-out agreement with your tenant first, I'm happy to walk you through the numbers and the timeline for your specific situation. Reach out anytime at ryan@connect.ca, or send your details through our contact form and we'll get back to you.
About Ryan Coyle
Ryan Coyle is a Toronto real estate broker and investor with more than 20 years in the industry and over $2 billion in real estate transactions. He personally holds a portfolio of 40+ doors and helps buyers, sellers, and investors build long-term wealth through Toronto real estate. Ryan leads Connect, a full-service GTA brokerage focused on the downtown core and north Toronto's luxury market. Learn more at connect.ca.
