Ontario Residential Tenancy Rights During the Pandemic
By Mark Weisleder
The COVID-19 Pandemic has impacted each of us in many ways, including the Ontario Residential Tenancy Rights. As it relates to real estate law, the rights of landlords and tenants under the Residential Tenancy Act of Ontario (the “Act”) have been turned upside down.
If you are in a landlord-tenant relationship, here are answers to some frequently asked questions:
Q: Is there a new Ontario Government Lease?
A: Yes, it’s available online, and it must be used for any lease entered into on or after March 1, 2021.
Q: What happens if you do not use the new government lease?
A: If you don’t use the government lease, your tenant may be able to cancel the lease during the term by first requesting the government lease and then giving 60 days’ notice.
Q: Can a tenant refuse to pay rent, knowing that they cannot be evicted?
A: While a tenant cannot be evicted during the crisis, there was no mention that rent would be forgiven. Rents are still owed, and proceedings could be brought at this time to collect the money or to evict the tenant for non-payment. In order for an eviction to be completed, several steps have to be taken. An initial notice must be served on the tenant. If rent is not paid, then a hearing must be applied for at the Board to obtain an eviction order. The eviction order must then be taken to the Sherriff of the county who is the only one who can enforce an eviction. Of course, even with a court order, the Sherriff will not enforce it during the pandemic. Once lockdown ends, you should be able to enforce the eviction.
Q: Can a tenant refuse to show their home to a potential buyer?
A: The answer is likely yes. Even though the Act permits a landlord to show with 24 hours written notice, that is likely not the case during this crisis. If a tenant does not agree and is concerned for their safety, they can deny any showing. The only way to show a home is if the tenant agrees. And, even if the tenant is being unreasonable, it will take months to obtain an eviction over their refusal.
Q: Can I close my deal now if the tenant refuses to leave?
A: I have had many sellers in this predicament, and I explain two choices. They can make a deal with the tenant, offering an incentive to move now if the tenant is agreeable. Or, they can offer the buyer a discount to close the deal with the tenant, and the understanding that the buyer will continue the eviction proceedings once the Board enforces it. Remember, no matter what you offer, the tenant can refuse to accept. My advice is to help the tenant find a place to move and pay an incentive to ensure the tenant comes out in a similar or better position. Then, have the tenant sign Form N11 where they agree to leave in exchange for compensation.
Q: What is the main lesson to remember for landlords and tenants?
A: We are all in this together. Staying healthy and safe should be our main focus. Landlords and tenants should treat each other with respect, patience, and understanding during this very difficult time.
Mark Weisleder is a senior partner at Real Estate Lawyers.ca LLP. If you have any questions or need assistance with your own landlord and tenant situation or agreement of purchase and sale, email mark@realestatelawyers.ca
