CHAPTER 10: TERMINATING THE TENANT AGREEMENT: NO- FAULT GROUNDS Emond Montgomery Publications 1

Chapter 10: Terminating the Tenancy Agreement: No-Fault Grounds Terminating the Tenancy Agreement Grounds for Termination at End of Term Personal or Family Use Defending a Notice to Terminate for Personal Use Demolition Conversion to a Non-Residential Use Repairs or Renovations Defending Applications Based on Terminations for Demolition, Conversion, or Major Repairs or Renovations Emond Montgomery Publications 2

Chapter 10: Terminating the Tenancy Agreement: No-Fault Grounds Persistent Late Payment Employment that has Been Terminated Ceasing to Meet Qualifications in Public Housing Collateral Agreement to Purchase a Proposed Condominium Unit Severances and Condominium Conversions Emond Montgomery Publications 3

Terminating the Tenancy Agreement In Ontario, residential tenants have “security of tenure”: to evict a tenant, a landlord must have a reason specified in the Residential Tenancies Act, 2006 (RTA) (ss. 37(1), 38, and 39) The form for a notice of termination at the end of a term of a tenant is Form N8 The RTA prevents landlords from terminating tenancies for improper reasons or if the termination would be unfair Emond Montgomery Publications 4

Grounds for Termination at End of Term A landlord may terminate a tenancy for: Personal or family use (s. 48(1)) Demolition (s. 50(1)(a)) Conversion to a non-residential use (s. 50(1)(b)) Repairs and renovations (s. 50(1)(c)) Persistent late payment (s. 58(1)1) Employment that has been terminated (s. 58(1)3) Ceasing to meet qualifications in public housing (s. 58 (1)2) Collateral agreement to purchase a proposed condominium unit (s. 58(1)4) Emond Montgomery Publications 5

Personal or Family Use Notice period is 60 days before the end of the term or a period of tenancy (s. 48(2)) “family use” can refer to use by: the owner or purchaser the owner’s or purchaser’s spouse a child of the owner or purchaser a parent of the owner or purchaser a caregiver to the owner or purchaser Grandchildren, grandparents, nephews, nieces, cousins, or other relatives who are not listed do not fall within the section The RTA requires the landlord’s or purchaser’s intention to occupy to be in good faith; that is, honest, true, and not for any improper motive Emond Montgomery Publications 6

Defending a Notice to Terminate for Personal Use There are three main ways to defend an application to terminate a tenancy based on personal possession by the landlord or a purchaser: showing there was an error on the notice or the application, or with service of the notice or application; challenging the good faith of the notice; and seeking s. 83 relief Emond Montgomery Publications 7

Demolition The notice period is at least 120 days before the end of the period of tenancy (s. 50(2)) The tenant may terminate early on at least 10 days notice (ss. 50(4) and (5)) The landlord must compensate the tenant with three months rent or find the tenant another rental unit if: The building is five units or more, and The demolition has not been ordered by a government agency (s. 52) Emond Montgomery Publications 8

Conversion to a Non-Residential Use The notice period is at least 120 days before the end of the period of tenancy The tenant may terminate at an earlier date on at least 10 days notice The landlord must compensate the tenant with three months rent or find the tenant another rental unit if the building is five units or more Emond Montgomery Publications 9

Repairs or Renovations The notice period is at least 120 days before the end of a period on tenancy The tenant may terminate early on at least 10 days notice The notice of termination for repairs or renovations must inform the tenant of: His or her right of first refusal to return to the premises once it is ready for occupancy, and How the tenant may exercise that right Emond Montgomery Publications 10

Repairs or Renovations If the tenant does not give notice to return to the unit the tenant is entitled to receive three months rent as compensation If the tenant does give notice to return to the unit, the tenant is entitled to receive as compensation the lesser of Three months rent or The rent for the period the unit is under repair Emond Montgomery Publications 11

Defending Applications Based on Terminations for Demolition, Conversion, or Major Repairs or Renovations Similar defences to those used for personal or family use A tenant can challenge whether the landlord actually requires vacant possession In defending a notice to terminate for conversion to non- residential use, a tenant can defend such a conversion application by proving that the landlord is not in compliance with the zoning of the property or the landlord’s legal non- conforming rights under the planning law A tenant can bring a tenant application if a landlord does not perform the work to the rental unit set out in the notice within a reasonable period of time (s. 57(1)(c)) Emond Montgomery Publications 12

Subsequent Applications Based on Terminations A tenant can bring an application if a landlord does not Occupy the unit Demolish the unit Convert the unit or Perform the repair or renovation work to the rental unit set out in the notice within a reasonable period of time (s. 57(1)) Emond Montgomery Publications 13

Persistent Late Payment Persistent late payment of rent often arises: where tenants are experiencing financial difficulties; or are careless in meeting their financial obligations The notice period is normally 60 days In the case of a daily or weekly tenancy, the notice period is 28 days It is important to find out why the rent payments are late More often than evicting the tenant, the board will “put the tenant on terms” Emond Montgomery Publications 14

Employment that has Been Terminated According to case law, the tenant cannot avoid eviction by claiming that the termination of employment is wrongful under the employment law The notice period is normally 60 days (ss. 58 and 44(2), (3), and (4)) The notice period for a daily or weekly tenancy is 28 days (ss. 58 and 44(1)) Less protection for tenants who are employed under s. 5(b) and s. 5(h) Emond Montgomery Publications 15

Ceasing to Meet Qualifications in Public Housing A tenant may cease to meet the qualifications for the housing unit when: the tenant earns more income; or acquires more assets than permitted by the rules governing the particular housing units in question Termination because of ceasing to meet qualifications occurs at the end of the tenant’s term, whereas termination and eviction for misrepresenting income can occur during the tenant’s term (early termination) Notice period is usually 60 days (ss. 58 and 44(2), (3), and (4)) In the case of a daily or weekly tenancy, the notice period is 28 days (ss. 58 and 44(1)) Emond Montgomery Publications 16

Collateral Agreement to Purchase a Proposed Condominium Unit Developers sell proposed condominium units and include collateral agreements that allow purchasers to occupy the unit they have bought as tenants until the condominium declaration is registered and the purchase can be completed For a variety of reasons, the purchase may not be completed The RTA provides that if the agreement of purchase and sale is terminated, the landlord (the developer) can terminate the tenancy (s. 58(1)4) Emond Montgomery Publications 17

Severance and Condominium Conversions There is a special rule for residential complexes that are created as a result of a severance (ss. 55 and 56) There are also special rules if a residential complex becomes subject to a condominium declaration after June 17, 1998 (s. 51) Emond Montgomery Publications 18