A seller wants to move back into their rental unit. A buyer wants the tenant out by closing. The two situations sound alike, but under Ontario’s newly amended tenancy rules, they are not treated the same way. For Realtors, knowing the difference can decide whether a deal closes the way everyone expects it to.

As of Sept. 21, another notable round of changes has taken effect at Ontario’s Landlord and Tenant Board (LTB). The amendments stem from changes to the Residential Tenancies Act introduced through Bill 60, the Fighting Delays, Building Faster Act, 2025, and Bill 97, the Helping Homebuyers, Protecting Tenants Act, 2023.

When a property is tenanted, tenancy law can affect listing strategy, closing dates, vacant possession, landlord obligations and negotiations. Some of these changes are particularly relevant to Realtors advising landlords, investors, sellers and purchasers of tenanted properties.

Here are the nuts and bolts.

 

The N4 timeline has been cut in half

 

One of the most immediate changes involves non-payment of rent. For an N4 (Notice to End a Tenancy Early for Non-payment of Rent) served on or after Sept. 21, 2026, the notice period has been reduced from 14 days to seven days.

For landlords, that means the formal enforcement process can begin sooner when rent is not paid.

For Realtors working with investor clients, however, the takeaway should not simply be that eviction is now “faster.” An N4 remains a technical legal notice. The amount of arrears, rental period, termination date and other information must be accurate.

That matters when a Realtor is helping a client assess an income property. Payment history and rent records have become even more important pieces of the due-diligence conversation.

 

Persistent late payment now has a clearer benchmark

 

As of Sept. 21, 2026, a tenant is considered to have persistently paid rent late if rent is received more than seven days after the due date at least three times within a six-month period. The LTB also notes that persistent late payment may still be found in other circumstances.

That is valuable information for landlords, and potentially for purchasers evaluating the payment history of an existing tenancy. A tenant who eventually pays every month may still present an operational issue if the payments repeatedly arrive well after the contractual due date.

For investment-property transactions, Realtors should encourage landlord clients to look beyond the headline rent. The rent roll tells only part of the story. The payment pattern matters too.

 

N12 notices: 120 days can change the compensation requirement

 

Perhaps the most significant change for Realtors involves the N12, particularly in transactions where an owner intends to personally occupy a rental unit.

For N12 notices served for a landlord’s own use on or after Sept. 21, 2026, a landlord who provides at least 120 days’ notice is no longer required to pay the tenant the usual compensation or offer another acceptable rental unit. If less than 120 days’ notice is provided, the existing compensation requirements continue to apply.

Importantly, this change does not apply to an N12 served for a purchaser’s own use.

That distinction is critical. A seller wanting to recover a rental property for personal occupancy is not necessarily operating under the same rules as a purchaser buying a tenanted property with the intention of moving in. This is exactly why Realtors should be cautious about treating every N12 situation as interchangeable, especially when it comes to legal advice, which Realtors should never provide.

Who requires the unit: the existing landlord or the purchaser? When is possession required? What does the agreement of purchase and sale (APS) require? Has a notice already been served? The answers can dramatically change the legal strategy.

 

N12 timing now matters after the tenant leaves, too

 

There is another major change to landlord’s-own-use cases. Where the N12 is for the landlord’s own use, the landlord or other qualifying person must generally take occupancy within 60 days of the relevant date. Failure to do so may create a presumption of bad faith in a subsequent T5 application, although the landlord has an opportunity to rebut that presumption at the hearing.

For Realtors, this is an important reminder that an N12 is not simply a mechanism for obtaining vacant possession. There must be a genuine intention to occupy. In fact, Realtors should know, or ought to know, that vacant possession should not be provided when listing and selling a tenanted property. 

In transactions involving tenanted properties, timelines need to be realistic from the outset. A vacant-possession clause in an APS does not override the Residential Tenancies Act, and an N12 should never be treated as a guaranteed eviction date.

 

Renovictions come with additional obligations

 

N13 notices are also affected. Where a tenant has exercised the right to return following qualifying repairs or renovations, landlords now have additional notice obligations. They must provide written information about the estimated completion date, advise the tenant if that date changes and notify the tenant when the unit is ready for occupancy.

Where the work is completed on or after Sept. 21, 2026, the landlord must also give the tenant 60 days’ notice to reoccupy the unit.

The deadline for certain T5 applications involving the tenant’s right of first refusal has also changed. Depending on the circumstances, a tenant may now have until two years after moving out or six months after the renovations are completed, whichever is later, to bring the application.

For Realtors involved in redevelopment or renovation projects, or with properties being marketed with vacant-possession expectations, those timelines deserve attention before promises are made to buyers.

 

Tenants raising issues at non-payment hearings face a new requirement

 

Where the landlord filed the rent-arrears application on or after Sept. 21, 2026, a tenant who wants to raise certain additional issues at the hearing under section 82, such as maintenance or tenants’ rights concerns, must generally pay the landlord half of the rent arrears claimed at least seven days before the hearing. The tenant must still provide the landlord and the LTB with the required description of the issues at least seven days before the hearing.

That could materially change the way some L1 hearings unfold.

 

The forms have changed, and old versions have an expiry date

 

Several commonly used LTB forms were updated on Sept. 21, 2026. The LTB says previous versions will no longer be accepted as of Nov. 30, 2026.

That may sound administrative, but it is not insignificant. Ontario tenancy proceedings are document-driven. Using an outdated form, calculating a date incorrectly or applying an old rule to a new notice can create unnecessary cost, delay and risk.

 

So, what should Realtors tell their landlord clients?

 

The biggest takeaway is simple: do not treat tenancy issues as an afterthought in a real estate transaction.

Before listing or purchasing a tenanted property, understand who occupies the unit, review the lease, confirm the rent and payment history, determine whether notices have already been served and identify exactly what the client expects to happen with the tenancy.

Most importantly, avoid promising a landlord, seller or purchaser that a tenant “will be out by closing.”

The legislation may have changed, but one principle has not: vacant possession and lawful termination of a tenancy are two different things. For Ontario Realtors, knowing that distinction can prevent a difficult tenancy issue from becoming a failed transaction.

 

This article is intended for general informational purposes only and does not constitute legal advice. The appropriate strategy will depend on the facts of each tenancy and transaction.