Successor Landlords in Title (RTA)

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Residential Tenancies Act, 2006, S.O. 2006, c. 17

2 (1) In this Act,

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“landlord” includes,

(a) the owner of a rental unit or any other person who permits occupancy of a rental unit, other than a tenant who occupies a rental unit in a residential complex and who permits another person to also occupy the unit or any part of the unit,

(b) the heirs, assigns, personal representatives and successors in title of a person referred to in clause (a), and

(c) a person, other than a tenant occupying a rental unit in a residential complex, who is entitled to possession of the residential complex and who attempts to enforce any of the rights of a landlord under a tenancy agreement or this Act, including the right to collect rent; (“locateur”)

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18 Covenants concerning things related to a rental unit or the residential complex in which it is located run with the land, whether or not the things are in existence at the time the covenants are made. 2006, c. 17, s. 18.

CET-70900-17 (Re), 2017 CanLII 93897 (ON LTB)

17. The new owner(s) meets the definition of a landlord in section 2 of the Act as a successor in title. Furthermore, as set out in section 18 of the Act, covenants (agreements or contracts) regarding the rental unit or residential complex run with the land. For the purposes of re-gaining possession of the rental unit, the new owner(s) of the property is governed by this order.

TEL-81897-17 (Re), 2018 CanLII 42843 (ON LTB)

The New Landlord’s Rights

16. As I explained several times at the hearing, the new Landlord is permitted to claim any and all outstanding rent that became due for the period before they bought the property.

17. Pursuant to section 18 of the Act, covenants “run with the land” which means when there is a transfer of title the new landlord steps into the shoes of the old landlord and they must accept the terms and conditions of the tenancy as they find them. In other words, the new Landlord must accept any debts or credits in the tenancy and is entitled to claim any outstanding arrears of rent.

18. Based on the evidence before me, I find that the new Landlord is entitled to collect any amount of rent that may be outstanding, including rent arrears for the period prior to the sale of the property.

CEL-59323-16 (Re), 2016 CanLII 71330 (ON LTB)

19. In a case such as this, where the Landlord’s application is for arrears of rent the Tenant is entitled, under s. 82 of the Act, as of right to raise any issue that could be the substance of an application and the Board is required to treat that oral application as it would one formally filed. In other words it is unnecessary for a tenant facing an arrears application to file a formal application with the Board; the Board is prepared to hear and decide the tenant’s issues at the same time as the landlord’s application.

20. During the course of the hearing, the Tenant provided affirmed and uncontradicted testimony that, upon executing the tenancy agreement with the previous landlord, he was asked to pay a “damage deposit” in the sum of $500.00. The Tenant provided a copy of the said tenancy agreement, which contains a schedule corroborating the Tenant’s testimony in this regard. The Landlord did not put forth any evidence challenging the Tenant’s allegation and, therefore, I find, on a balance of probabilities, that the Tenant paid the amount claimed to the previous landlord for a damage deposit.

21. Section 18 of the Act says: “Covenants concerning things related to a rental unit or the residential complex in which it is located run with the land, whether or not the things are in existence at the time the covenants are made.” It is commonly accepted that what this provision means is that when a property is sold and there are sitting residential tenants, any tenancy agreements “run with the land” meaning they remain in place on the same terms and conditions as existed prior to the sale. The new owner steps into the shoes of the previous landlord.

22. The collection of a damage deposit is prohibited by sections 105 and 134 of the Act and is, accordingly, an illegal charge. An Order will issue requiring the Landlord to pay $500.00 to the Tenant.