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Evicting A Tenant In Ontario
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Title and Real Property
Holding title to real property refers to the interest of a particular individual who has legally recognized ownership of property. More traditionally, title to real property was used to refer to an individual who has the legal right to use the property. Today, title to real property can be held in several different forums.
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Important Clauses in a Letter of Intent
Letters of intent, also known as an LOI, is a document used to negotiate between a buyer and a seller in various types of transactions. LOI’s outline the specific terms of a potential deal that will occur at some point. LOI’s are typically used to discuss aspects in the contract that can still be negotiated.
Bill 184 Is Now Official In Ontario
Author: Anika Helen - Paralegal
Edited By: Ryan Carson
Since mid-March, Ontario rental housing providers have been unable to evict tenants who were unable to pay rent due to the impact of Covid-19. Many people have lost their jobs and are still recovering from the impact, if at all. During the pandemic, the province had stopped evictions to protect tenants from being forced out of their home. As a result, landlords were not paid months of rent and many are still not receiving rent. Now, a bill has been passed to protect both landlords as well as tenants in times of hardship. The bill proposes a number of amendments to the Residential Tenancies Act, 2006 (RTA) and Housing Service Act, 2011. Following are the new updates to the legislations and details about what this new bill is about.
What Does This New Bill Entail?
Bill 184 is known as Protecting Tenants and Strengthening Community Housing Act. Bill 184 will require anyone with rent arrears to pay back their landlords in a structured repayment plan. The legislation before was structured to protect tenants from unfair eviction due to rent arrears, especially in the midst of Covid-19. However, as the health crisis eases and the suspension on evictions comes to an end, the legislation had to come up with a way to also protect landlords who have lost months of rent, and are still not being paid by many tenants. This bill provides options for landlords to make structured payments in order to pay back the amount of rent owed.
Changes In The legislation
Compensation from former tenants
At this point, landlords are permitted to apply for seeking rent arrears under Section 87 and 89 of the Residential Tenancies Act, 2006. Landlords can also seek compensation for over holding or damage to a rental unit where the tenant does not give up possession beyond the expiration of the lease. The legislation plans to permit landlords to use the sections to file an application even after a tenant has moved out of the rental unit. Landlords will have one year from the date their tenant has moved out to file an application with the Landlord and Tenant Board for compensation regarding any of the above situations.
This bill will allow landlords to seek compensation with respect to a tenant interfering with another tenant’s or another resident’s reasonable enjoyment of the premises. Landlords will be able seek compensation for the tenant’s failure to pay any utility bills for which they were responsible. Landlords have one year from the date the tenant moves out of the unit to file this application. Hence, the most important change to this part of the legislation is that landlords will be able to pursue an application for the above matters even after tenants have vacated the rental unit.
Increased fines for terminating a tenancy in bad faith
Before bill 184 passed, the Landlord and Tenant Board would take action when a landlord terminated a tenancy in bad faith. Landlords’ usual reasoning for ending a tenancy would be for personal use, demolition, conversion and substantial renovation. The board would order landlords to pay an equal amount of rent increase as a result of the tenant moving elsewhere, including moving expenses, storage costs or similar expenses. Landlords were also fined up to $35,000 in the case that they acted in bad faith.
What Bill 184 changes is that now, if a landlord ends a tenancy in bad faith, the board can order the landlord to compensate the former tenant in an amount equal to up to twelve months’ rent at the monthly rate last charged by the landlord.
Affidavits are required for applications to the Board to terminate a tenancy
Bill 184 requires landlords to swear an affidavit setting out the particulars of the reason for termination of tenancy. It can be any of the above-mentioned reasons, but the affidavit makes sure that any landlord who wants to terminate a tenancy in bad faith will be held accountable. In addition, landlords are now required to indicate whether or not it has been two years in between filing the present application and a previous one in case a termination notice was given before for similar reasons.
The Bill makes sure that a landlord does not act in bad faith considering the reasons for termination. It permits the Board to use a landlord’s previous use of notices of termination under Sections 48, 49 and 50 in determining whether or not they are acting in good faith in currently applying for termination of a tenancy under those same Sections. The important part of this is that the sworn affidavit will deter landlords from terminating tenancies in bad faith.
Penalties
Before Bill 184, Section 238(2) of the Residential Tenancies Unit provided that a corporation found liable for a breach of contract under the RTA are liable on conviction to a fine of not more than $100,000. Bill 184, however, increased this maximum to $250,000.
Position of Lawmakers
The government has stated that this bill will make it easier to resolve disputes while protecting tenants from unlawful evictions. The purpose of the bill is to simply protect both landlords as well as tenants. The changes being implemented will bring fairness to the system. Every eviction does not necessarily need a hearing at the Board, but a fair eviction in the case that a tenant does not pay back rent owed in bad faith, not because they cannot afford it. The changes to the legislation also protect tenants in the case that a landlord decides to terminate a tenancy in bad faith. Now, if a landlord acts in bad faith, the board will require them to compensate the tenant for hardship, in addition to receiving a large number of fines.
Position of Tenants
Tenants all over the province who currently rent are not happy with the bill. Many had lost their jobs when the pandemic started and many of them were not able to make rent payments. Activists and tenants all over the GTA are protesting this bill saying that it will lead to mass evictions, as not many people happen to have jobs right now. Tenants and activists are worried that once they arrear in rent payment, a structured payment plan will be implement for tenants to pay back the money to the landlord. Keeping in mind that when the pandemic started, none of the renters were forced to make rent payments as the board put a halt in filing applications for eviction. The idea was never that renters will not have to pay the rent ever again, but that once the economy started to get better, and people get their jobs back, tenants would have to come up with a payment plan for the months of rent they previously did not have to pay due to the pandemic.
Tenants are scared and they fear that they will be evicted and will not have a chance to present their case to the Board. According to tenants and activists, the bill puts renters and the working class in danger. People do not agree that landlords should be able to evict tenants in the case that tenants do not pay back the rent arrears that were incurred during the pandemic.
Comments
Though both sides have fair and justified concerns about the residential tenancy system, Bill 184 was not enacted to be unfair on any tenants going through hardship due to the pandemic. During the pandemic, landlords were simply not allowed to file any application for evictions related to rent arrears. That led to mortgage deferrals for a number of months before financial institutions decided to recently suspend that. Landlords will be forced to sell their homes, or pay mortgage out of pocket to keep tenants in the rental units. The bill is trying to support landlords in these hard times as well as trying to protect tenants. It is understandable that many might fear that it gives landlords the leverage to treat tenants unfairly. However, the bill makes sure that tenants are protected. As discussed above, landlords will not be allowed to evict tenants in bad faith, and if they do, they will be fined and will be forced to compensate. The bill does not open up disputes regarding unfair evictions. If a landlord takes any steps that treats a tenant unfairly, it is advisable that reach out to a legal representative for help. It is important to know what your rights are and options to make sure you are protected.
Articles written by Anika Helen:
When Are You Allowed To Evict A Tenant In Ontario? What Different Kinds of Damages are there in Litigation? Section 718.1 of the Criminal Code
Common Summary Conviction Offences Impact of COVID-19 on landlords and tenants Who is a litigation guardian and what are their duties?
Disclaimer
The content on this web site is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Users of this web site are advised to seek specific legal advice by contacting members of Carson Law, Carson IP, or their own legal counsel regarding any specific legal issues. Carson Law does not warrant or guarantee the quality, accuracy or completeness of any information on this web site. The articles published on this web site are current as of their original date of publication, but should not be relied upon as accurate, timely or fit for any particular purpose.
Leaves of Absence in Ontario
Author: Stacey Staios - Articling Student
Edited By: Ryan Carson
In Ontario, employees are afforded certain rights under the Employment Standards Act (ESA), including leaves of absence. A leave of absence is an employee’s right to temporarily stop work and return to their job-protected position within the workplace. Although there are many different types of absences, for the purpose of this article, the most common absences will be discussed, along with an employee’s rights while on such leaves.
One of the most common leaves includes pregnancy and parental leave. Pregnant employees have the right to take a pregnancy leave of up to 17 weeks, or longer of unpaid time off work. A pregnant employee is entitled to this leave regardless if she is a full-time, part-time, permanent or contract employee, provided that she is employed by an employer that is covered under the ESA, and she started her employment at least 13 weeks before the date her baby is expected to be born.1
Parental leave, on the other hand, is offered to both new parents. Parental leave is available for parents who qualify, offering up to 61 to 63 weeks of unpaid time off work. Similar to pregnancy leave, a new parent is entitled to parental leave regardless if they are full-time, part-time, permanent or contract employees, provided they are employed by an employer who is covered by the ESA and were employed for at least 13 weeks before commencing the parental leave.2 In this event, a ‘parent’ includes a birth parent, an adoptive parent, or a person who is in a relationship of some permanence with a parent of the child and who plans on treating the child as his or her own, including same-sex couples.3
For both pregnancy and parental leave, an employee who takes such leave is entitled to return to the same job the employee had before the leave began, or return to a comparable job if the employee’s old position no longer exists. In addition, employers cannot punish an employee in any way because the employee took a pregnancy or parental leave, plans to take a leave, is eligible to take a leave or will become eligible to take a leave.4 Employers have a responsibility during pregnancy and parental leave to maintain the employment contracts, such as continuing to contribute to benefits.
Sick leave is another type of leave of absence offered to employees. Most employees have the right to take up to three days of unpaid job-protected time off due to personal illness, injury or medical emergency. However, an employment contract may provide a greater right or benefit than the sick leave standards under the ESA. Generally, an employee must inform their employer before starting the leave, and if this is not possible, the employee is required to inform their employer as soon as possible after starting the leave. Further, an employer may require an employee to provide a medical note from a health care professional asking for the duration or expected duration of the absence, the date the employee was seen by the health care practitioner and whether the patient was examined in person by the health care professional issuing the note. Employees who take a sick leave are entitled to the same rights as employees who take pregnancy or parental leave, in such that an employer cannot threaten, fire or penalize in any way an employee who takes or plans to take a sick leave.5
Another leave of absence is the family caregiver leave. Similar to the leaves mentioned above, this is an unpaid, job-protected leave and can last up to eight weeks per calendar year per specified family member.6 The care or support for a family member may include but is not limited to, providing psychological or emotional support, arranging for care by a third-party provider or directly providing for the family member.7
Under the Employment Standards Act, there are many different types of leaves that employees are entitled to take, which are job-protected. This means that employees are permitted to take time off work for personal or health related reasons and return to their same position or one that is comparable, without being penalized by their employer.
One of the most common leaves includes pregnancy and parental leave. Pregnant employees have the right to take a pregnancy leave of up to 17 weeks, or longer of unpaid time off work. A pregnant employee is entitled to this leave regardless if she is a full-time, part-time, permanent or contract employee, provided that she is employed by an employer that is covered under the ESA, and she started her employment at least 13 weeks before the date her baby is expected to be born.1
Parental leave, on the other hand, is offered to both new parents. Parental leave is available for parents who qualify, offering up to 61 to 63 weeks of unpaid time off work. Similar to pregnancy leave, a new parent is entitled to parental leave regardless if they are full-time, part-time, permanent or contract employees, provided they are employed by an employer who is covered by the ESA and were employed for at least 13 weeks before commencing the parental leave.2 In this event, a ‘parent’ includes a birth parent, an adoptive parent, or a person who is in a relationship of some permanence with a parent of the child and who plans on treating the child as his or her own, including same-sex couples.3
For both pregnancy and parental leave, an employee who takes such leave is entitled to return to the same job the employee had before the leave began, or return to a comparable job if the employee’s old position no longer exists. In addition, employers cannot punish an employee in any way because the employee took a pregnancy or parental leave, plans to take a leave, is eligible to take a leave or will become eligible to take a leave.4 Employers have a responsibility during pregnancy and parental leave to maintain the employment contracts, such as continuing to contribute to benefits.
Sick leave is another type of leave of absence offered to employees. Most employees have the right to take up to three days of unpaid job-protected time off due to personal illness, injury or medical emergency. However, an employment contract may provide a greater right or benefit than the sick leave standards under the ESA. Generally, an employee must inform their employer before starting the leave, and if this is not possible, the employee is required to inform their employer as soon as possible after starting the leave. Further, an employer may require an employee to provide a medical note from a health care professional asking for the duration or expected duration of the absence, the date the employee was seen by the health care practitioner and whether the patient was examined in person by the health care professional issuing the note. Employees who take a sick leave are entitled to the same rights as employees who take pregnancy or parental leave, in such that an employer cannot threaten, fire or penalize in any way an employee who takes or plans to take a sick leave.5
Another leave of absence is the family caregiver leave. Similar to the leaves mentioned above, this is an unpaid, job-protected leave and can last up to eight weeks per calendar year per specified family member.6 The care or support for a family member may include but is not limited to, providing psychological or emotional support, arranging for care by a third-party provider or directly providing for the family member.7
Under the Employment Standards Act, there are many different types of leaves that employees are entitled to take, which are job-protected. This means that employees are permitted to take time off work for personal or health related reasons and return to their same position or one that is comparable, without being penalized by their employer.
Disclaimer
The content on this web site is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Users of this web site are advised to seek specific legal advice by contacting members of Carson Law, Carson IP, or their own legal counsel regarding any specific legal issues. Carson Law does not warrant or guarantee the quality, accuracy or completeness of any information on this web site. The articles published on this web site are current as of their original date of publication, but should not be relied upon as accurate, timely or fit for any particular purpose.
References
1 Government of Ontario, ‘Pregnancy and Parental Leave’ https://www.ontario.ca/document/your-guide-employment-standards-act/pregnancy-and-parental-leave#:~:text=Pregnant%20employees%20have%20the%20right,of%20unpaid%20time%20off%20work.&text=Birth%20mothers%20who%20took%20pregnancy,to%2063%20weeks'%20parental%20leave.2 Ibid.
3 Ibid.
4 Ibid.
5 Government of Ontario, ‘Sick Leave’ https://www.ontario.ca/document/your-guide-employment-standards-act-0/sick-leave
6 Government of Ontario, ‘Family Caregiver Leave’ https://www.ontario.ca/document/your-guide-employment-standards-act-0/family-caregiver-leave
7 Ibid.
Valid, Void and Voidable Contracts
Author: Sarah Nadon – Law Student
Edited By: Ryan Carson
What makes a contract voidable?
Voidable contracts have elements within the contract that are enforceable, therefore on their face, they appear to be valid. However, they also contain elements that make is possible for one or both parties to void the contract entirely. The contract is considered to be valid if the injured party opts not to take action and not render the contract void.
Reasons a contract may be voidable:
Failure of one or both parties to disclose a material fact,
Fraud,
Duress,
One party is legally incapacitated,
The contract contains unconscionable terms.
To enforce the voidable contract, one of the parties must exercise their right to render the contract void. But both parties have the right to enforce the contract. A void contract is different from a voidable contract because from the moment a void contract is created it cannot be fulfilled while a voidable contract can be performed and enforced as soon as the contractual defects are corrected.
What makes a contract void?
A void contract is a formal agreement that is illegitimate and cannot be enforced by law because it cannot be performed.
Reasons a contract may be void:
One party is contracted to do something impossible,
One party is contracted to do something illegal or against public policy,
The contract restricts an individual’s rights.
What makes a contract valid?
A valid contract creates a legal agreement between two parties. A valid contract contains an offer, acceptance and consideration as well as meeting of the minds and mental capacity, therefore parties are legally responsible for the performance of the contract. If one party breaches the contract, the other party may go to the courts in order to receive remedies. All elements of a valid contract are legal, enforceable and binding.
Elements of a valid contract:
Offer
Acceptance
Consideration
Meeting of the minds
Disclaimer
The content on this web site is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Users of this web site are advised to seek specific legal advice by contacting members of Carson Law, Carson IP, or their own legal counsel regarding any specific legal issues. Carson Law does not warrant or guarantee the quality, accuracy or completeness of any information on this web site. The articles published on this web site are current as of their original date of publication, but should not be relied upon as accurate, timely or fit for any particular purpose.
When Are You Allowed To Evict A Tenant In Ontario?
Author: Anika Helen - Paralegal
Edited By: Ryan Carson
According to the Residential Tenancies Act, 2006, and the Rental Fairness Act, 2017, a landlord can evict a tenant only for certain reasons. Tenants can get evicted for doing things are not legally allowed to do in a rental unit. Some situations where a landlord can evict a tenant are:
Evicting a tenant for non-payment of rent or not paying the rent in full
When a tenant pays rent late and the rent is not paid in full by midnight of the day when it is due, the landlord does not have to accept partial payment. It is up to the landlord whether they want to accept the partial payment and how to proceed to recover the rest of the rent that is owed to them. Landlords can serve a notice that advises tenants to pay the remaining balance of the rent, or move out of the home. The notice gives the tenant 14 days to pay the rent or to move out. If the tenant takes neither of those steps, a landlord can then proceed to file an application with the Landlord and Tenant Board for an order that requires the tenant to pay the rent or evict the tenant in the case the rent has not been paid by the deadline outlined in the notice.
Evicting a tent for persistently paying the rent late
When a tenant is often late with rent payments, a landlord has the option of serving a Notice to Terminate a Tenancy at the End of Term. In most cases, 60 days’ notice is required for the termination. However, for daily and weekly tenants, 28 days’ notice must be given before the end of their lease or rental period. Alongside of serving the notice, a landlord can also apply to the Landlord and Tenant Board for eviction of the tenant, where a hearing is held to hear both sides and make a decision.
Evicting tenants for damage to unit or complex
A landlord may serve a notice of termination of tenancy if the tenant, another occupant who lives with the tenant, or a guest of the tenant willfully and negligently causes damage to the rental unit or parts of the rental unit. A notice of termination will outline the following:
Provide a termination date that is 20 days after the notice is served;
Require the tenant to repair the damaged property or pay for the costs of repair of the damaged property within 7 days after the noticed is served. If the costs of the repair of the damaged property are not reasonable, the tenant must then pay for the replacement of the damaged property
In the case that the tenant complies with the notice of termination and pays for the damages of the property within 7 days and causes no further damage to the property, then the notice of termination is void.
Evicting tenants for illegal activities
A landlord may provide a tenant with a notice of termination of tenancy if the tenant, an occupant that lives with the tenant, or a guest of the tenant carries out illegal act, business, trade or occupation and permits another person to do so in the rental unit. The notice provides 10 days for the tenant and their occupants to move out of the unit.
Evicting tenants for interfering with reasonable enjoyment
A landlord may provide a notice of termination of tenancy if the conduct of the tenant, an occupant who lives with the tenant, or a guest of the tenant interferes with the enjoyment of other occupiers in the residential complex. If the conduct interferes with another person’s lawful right, privilege or interest of the landlord of another tenant, they can be served with a notice of termination. This notice provides the tenant with 20 days to move out of the rental unit. However, in the case that the tenant or an occupant of the tenant stops the conduct or activity and causes no further issues, within 7 days of being received the notice, then the notice of termination is void.
Evicting tenants for too many persons living in the rental unit
A landlord may provide a tenant with a notice of termination if there are too many persons living in the rental unit. If the number of persons living in the rental unit exceeds the limitations of the rental unit, contravenes health and safety standards as well as housing standards required by law, then a notice of termination may be served by a landlord. This notice provides tenants with 20 days from the day they receive the notice, to move out of the unit. However, if within 7 days, the tenant removes the excess number of persons from the unit and complies with health and safety standards, or housing standards, the termination notice is void.
Evicting tenants for impairing the safety of others
When a tenant, an occupant who lives with the tenant, or a guest of the tenant carries out an activity to threatens or affects the safety of other tenants or landlord in the residential complex, a notice of termination of tenancy must be served by a landlord to a tenant. The notice provides the tenant with 10 days to leave the rental unit and end the tenancy. As soon as the landlord serves the notice, they can then proceed to file an application with the Landlord and Tenant Board to evict the tenant(s), or wait to see whether the tenant(s) move out of the rental unit by the termination date set in the notice of termination of tenancy. When it comes to safety of others, this notice does not give a chance to the tenant to rectify their behavior. Like most notices, this notice will not be void if the dangerous activities are stopped by the tenant(s).
Evicting a tenant for Landlord’s Own Use
A landlord is allowed to evict their tenant if the landlord requires the rental unit for the following reasons:
Their own use;
The use of an immediate family member. For example, children, wife, father, etc.;
And the use of a person who will provide care services to the landlord or to members of the landlord’s immediate family, who is also living in the same residential complex.
However, since September 1, 2017, a landlord has to compensate a tenant in an amount that equals to one month’s rent, OR offer the tenant another rental unit that is acceptable by the tenant, if the landlord serves a notice of termination for the uses mentioned above. Once the notice is served to the tenant, the landlord can then proceed to file an application with the Landlord and Tenant Board for an order to evict the tenant. However, when it comes to corporations or companies that own residential complexes, this section does not apply to them. Only an individual is allowed to evict tenants for their own use. Corporations are not permitted to evict tenants for the above-mentioned uses.
Evicting tenants for selling the house
A tenant can be evicted if their landlord sells the home. When it comes to a landlord’s residential property that was rented out, they can only evict the tenant if the new owner of the property will be using the unit for their own use, their immediate family members or someone will be providing care for them and their family members. However, if a landlord is selling their home and they have a tenant living in the property, they can keep the tenant IF the new owner would also be renting out the rental unit. The eviction will depend upon whether the new owners will be living in the property or whether it will be rented out. Once the landlord for eviction serves a notice, they can proceed to file an application with the Landlord and Tenant Board for an order of eviction.
Evicting tenants for demolition, conversion or repairs
A landlord may give notice of termination of tenancy if the landlord required the rental unit to carry out the following:
Demolish it;
Convert it to use for a purpose other than residential premises;
And do repairs or renovation that are so extensive that they require a building permit and vacant possession of the rental unit.
For this notice of termination, the landlord must provide the tenant with 120 days to evict the rental unit after the notice is served. A tenant may end the tenancy earlier than the 120 days provided by the notice, if they wish to. In this scenario, the landlord must compensate the tenant in an amount that equals to three months rent OR offer the tenant another rental unit acceptable by the tenant.
A landlord cannot lock a tenant out of their rental unit
A tenant has the right to stay in the rental unit until a landlord is able to get an order from the Landlord and Tenant Board for eviction. It is illegal to lock tenant(s) out of their rental units or the building. If a landlord is convicted of carrying out such activity, they can be fined up to $25,000 if the landlord is an individual, or $100,000 if the landlord is a corporation.
It is important to know your rights, and what steps to take whether you are a landlord or a tenant. If you think you need help in a situation that relates to any of the above mentioned scenarios, reach out to a legal representative and get proper guidance before you take any steps.
Disclaimer
The content on this web site is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Users of this web site are advised to seek specific legal advice by contacting members of Carson Law, Carson IP, or their own legal counsel regarding any specific legal issues. Carson Law does not warrant or guarantee the quality, accuracy or completeness of any information on this web site. The articles published on this web site are current as of their original date of publication, but should not be relied upon as accurate, timely or fit for any particular purpose.