Refusal to Assign (Administrative Fee)

Caselaw.Ninja, Riverview Group Publishing 2021 ©
Date Retrieved:	2024-10-07
CLNP Page ID:	1784
Page Categories:	[Contract Law, Leases, & Sub-Letting (LTB)]
Citation:	Refusal to Assign (Administrative Fee), CLNP 1784, <4N>, retrieved on 2024-10-07
Editor:	Sharvey
Last Updated:	2021/10/21

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

General, O Reg 516/06

17. The following payments are exempt from subsections 134 (1) and (3) of the Act:

1. Payment for additional keys, remote entry devices or cards requested by the tenant, not greater than the direct costs.

2. Payment for replacement keys, remote entry devices or cards, not greater than the direct replacement costs, unless the replacement keys, remote entry devices or cards are required because the landlord, on the landlord’s initiative, changed the locks.

3. Payment of a refundable key, remote entry device or card deposit, not greater than the expected direct replacement costs.

4. Payment of NSF charges charged by a financial institution to the landlord.

5. Payment of an administration charge, not greater than $20, for an NSF cheque.

6. Payment by a tenant, former tenant, subtenant or former subtenant in settlement of a court action or potential court action or an application or potential application to the Board.

7. Payment to a landlord or tenant of a mobile home park or land lease community at the commencement of a tenancy as consideration for the rental of a particular site.

8. Payment of a charge not exceeding $250 for transferring, at the request of the tenant,

i. between rental units to which subsection 6 (1) or (3) of this Regulation applies, if the rental units are located in the same residential complex, or

ii. between rental units in a residential complex that is described in paragraph 1, 2, 3 or 4 of subsection 7 (1) of the Act.

9. Payment of an amount to reimburse the landlord for property taxes paid by the landlord with respect to a mobile home or a land lease home owned by the tenant. O. Reg. 516/06, s. 17; O. Reg. 562/17, s. 1.

TET-06146-19 (Re), 2020 CanLII 61182 (ON LTB)

10. When the Tenant asked to break the fixed-term lease, the Landlord had the option to say no. However, the Landlord did not exercise that option and agreed to the Tenant ’s request. Thus, the parties entered into an agreement to terminate the tenancy in accordance with section 37(3) of the Act. The question before me is whether the Act entitles the Landlord to charge or retain a fee for agreeing to terminate the tenancy.

11. Subsection 134(1) of the Act says:

134. (1) Unless otherwise prescribed, no landlord shall, directly or indirectly, with respect to any rental unit,

(a) collect or require or attempt to collect or require from a tenant or prospective tenant of the rental unit a fee, premium, commission, bonus, penalty, key deposit or other like amount of money whether or not the money is refundable;

12. This reads as an absolute prohibition against a landlord charging any kind of fee other than rent to a tenant. However, the section uses the phrase “unless otherwise prescribed” which means fees can be charged if they are specifically permitted in the regulations to the Act.

13. The exemptions to s. 134(1) are set out in section 17 of Ontario Regulation 516/06:

17. The following payments are exempt from section 134 of the Act:

1. Payment for additional keys, remote entry devices or cards requested by the tenant, not greater than the direct costs.

2. Payment for replacement keys, remote entry devices or cards, not greater than the direct replacement costs, unless the replacement keys, remote entry devices or cards are required because the landlord, on the landlord’s initiative, changed the locks.

3. Payment of a refundable key, remote entry device or card deposit, not greater than the expected direct replacement costs.

4. Payment of NSF charges charged by a financial institution to the landlord.

5. Payment of an administration charge, not greater than $20, for an NSF cheque.

6. Payment by a tenant, former tenant, subtenant or former subtenant in settlement of a court action or potential court action or an application or potential application to the Board.

7. Payment to a landlord or tenant of a mobile home park or land lease community at the commencement of a tenancy as consideration for the rental of a particular site.

8. Payment of a charge not exceeding $250 for transferring, at the request of the tenant,

i. between rental units to which subsection 6 (1) or (3) of this Regulation applies, if the rental units are located in the same residential complex, or

ii. between rental units in a residential complex that is described in paragraph 1, 2, 3 or 4 of subsection 7 (1) of the Act.

9. Payment of an amount to reimburse the landlord for property taxes paid by the landlord with respect to a mobile home or a land lease home owned by the tenant

14. The list of exemptions does not include a charge for entering into an agreement to terminate the tenancy.

15. Based on the documentary evidence before me, there was no evidence that the deduction of the $300.00 from the Tenant ’s deposit was in exchange of settling any potential court action.

16. Therefore, I find that the Landlord breached section 134 of Act by retaining $300.00 from the Tenant’s last month’s rent deposit as an administration fee for breaking the lease.

17. As the Tenant has been successful in her application, the Tenant is entitled to a reimbursement of the application filing fee.

18. This order contains all of the reasons for my decision within it. No further reasons shall be issued.