Short answer
For an eligible sale, the purchaser, purchaser’s spouse, specified parents or children, or a qualifying caregiver may support purchaser-use termination. The property and good-faith occupation requirements must also fit.
The buyer or owner’s concern
A buyer wants a cousin, sibling, friend or future tenant to occupy and assumes any family connection qualifies for an N12.
What Ontario’s official guidance says
The LTB’s guidance lists the qualifying purchaser-side occupants and explains that purchaser-use notices apply to specified property types and require residential occupation.
What the rule does not guarantee
The list is not “any relative.” An investor cannot use N12 simply to obtain market rent, renovate, resell or choose another tenant. Corporate purchasers and larger residential complexes can raise additional restrictions.
A practical Ontario example
Illustration only: A purchaser wants the unit for an adult sibling. The sibling relationship alone is not included in the standard purchaser-use list, so vacant possession should not be promised based on that plan.
Practical next steps
Have a landlord-tenant lawyer or licensed paralegal confirm the purchaser, property and intended occupant before the seller serves notice. If the purchase only works with immediate vacancy, use a protective condition or reconsider the transaction.
Questions to ask before relying on the rent
- What is the current lawful rent and when was it last increased?
- Is the unit guideline-covered or genuinely exempt?
- Do the lease, notices, ledger and seller’s statements agree?
- Does the purchase require vacant possession or future higher rent to remain affordable?
- Which issue needs a lawyer or licensed paralegal before conditions are waived?
Rajiv’s broker perspective
A lender’s rental worksheet and Ontario tenancy law answer different questions. The lender may recognize only part of the rent, while the owner may also be unable to increase rent or obtain vacancy on the expected date. I would qualify the mortgage using verified lawful rent, test vacancy and repair reserves, and compare A, alternative/B, MIC or private options only after the legal occupancy assumptions are confirmed.
Related: Real Estate Centre · Mortgage Knowledge Centre · Updates & Rules Centre
Buying or refinancing a tenant-occupied property?
Send Rajiv the property type, lawful rent, lease dates and intended occupancy. He can test the mortgage using realistic rental assumptions and identify when independent landlord-tenant advice is needed.
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