Bad Faith (Purchaser)

Caselaw.Ninja, Riverview Group Publishing 2021 ©
Date Retrieved:	2024-11-10
CLNP Page ID:	1861
Page Categories:	[Personal Use Application (LTB)]
Citation:	Bad Faith (Purchaser), CLNP 1861, <69>, retrieved on 2024-11-10
Editor:	Sharvey
Last Updated:	2022/02/02

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Residential Tenancies Act, 2006

49 (1) A landlord of a residential complex that contains no more than three residential units who has entered into an agreement of purchase and sale of the residential complex may, on behalf of the purchaser, give the tenant of a unit in the residential complex a notice terminating the tenancy, if the purchaser in good faith requires possession of the residential complex or the unit for the purpose of residential occupation by,

(a) the purchaser;

(b) the purchaser’s spouse;

(c) a child or parent of the purchaser or the purchaser’s spouse; or

(d) a person who provides or will provide care services to the purchaser, the purchaser’s spouse, or a child or parent of the purchaser or the purchaser’s spouse, if the person receiving the care services resides or will reside in the building, related group of buildings, mobile home park or land lease community in which the rental unit is located. 2006, c. 17, s. 49 (1); 2021, c. 4, Sched. 11, s. 31 (1).

(2) If a landlord who is an owner as defined in clause (a) or (b) of the definition of “owner” in subsection 1 (1) of the Condominium Act, 1998 owns a unit, as defined in subsection 1 (1) of that Act, that is a rental unit and has entered into an agreement of purchase and sale of the unit, the landlord may, on behalf of the purchaser, give the tenant of the unit a notice terminating the tenancy, if the purchaser in good faith requires possession of the unit for the purpose of residential occupation by,

(a) the purchaser;

(b) the purchaser’s spouse;

(c) a child or parent of the purchaser or the purchaser’s spouse; or

(d) a person who provides or will provide care services to the purchaser, the purchaser’s spouse, or a child or parent of the purchaser or the purchaser’s spouse, if the person receiving the care services resides or will reside in the building, related group of buildings, mobile home park or land lease community in which the rental unit is located. 2006, c. 17, s. 49 (2); 2021, c. 4, Sched. 11, s. 31 (1).

(3) The date for termination specified in a notice given under subsection (1) or (2) shall be at least 60 days after the notice is given and shall be the day a period of the tenancy ends or, where the tenancy is for a fixed term, the end of the term. 2006, c. 17, s. 49 (3).

(4) A tenant who receives notice of termination under subsection (1) or (2) may, at any time before the date specified in the notice, terminate the tenancy, effective on a specified date earlier than the date set out in the landlord’s notice. 2006, c. 17, s. 49 (4).

(5) The date for termination specified in the tenant’s notice shall be at least 10 days after the date the tenant’s notice is given. 2006, c. 17, s. 49 (5).

49.1 (1) A landlord shall compensate a tenant in an amount equal to one month’s rent or offer the tenant another rental unit acceptable to the tenant if,

(a) the landlord gives the tenant a notice of termination of the tenancy on behalf of a purchaser under subsection 49 (1) or (2); and

(b) the notice of termination is given on or after the day the Protecting Tenants and Strengthening Community Housing Act, 2020 receives Royal Assent. 2020, c. 16, Sched. 4, s. 5.

(2) Despite section 18, the obligation to compensate the tenant under subsection (1) remains an obligation of the landlord who gives the notice of termination of the tenancy on behalf of the purchaser and does not become an obligation of the purchaser. 2020, c. 16, Sched. 4, s. 5.

...

57 (1) The Board may make an order described in subsection (3) if, on application by a former tenant of a rental unit, the Board determines that,

(a) the landlord gave a notice of termination under section 48 in bad faith, the former tenant vacated the rental unit as a result of the notice or as a result of an application to or order made by the Board based on the notice, and no person referred to in clause 48 (1) (a), (b), (c) or (d) occupied the rental unit within a reasonable time after the former tenant vacated the rental unit;

(b) the landlord gave a notice of termination under section 49 in bad faith, the former tenant vacated the rental unit as a result of the notice or as a result of an application to or order made by the Board based on the notice, and no person referred to in clause 49 (1) (a), (b), (c) or (d) or 49 (2) (a), (b), (c) or (d) occupied the rental unit within a reasonable time after the former tenant vacated the rental unit; or

(c) the landlord gave a notice of termination under section 50 in bad faith, the former tenant vacated the rental unit as a result of the notice or as a result of an application to or order made by the Board based on the notice, and the landlord did not demolish, convert or repair or renovate the rental unit within a reasonable time after the former tenant vacated the rental unit. 2006, c. 17, s. 57 (1).

(2) No application may be made under subsection (1) more than one year after the former tenant vacated the rental unit. 2006, c. 17, s. 57 (2).

(3) The orders referred to in subsection (1) are the following:

1. An order that the landlord pay a specified sum to the former tenant for all or any portion of any increased rent that the former tenant has incurred or will incur for a one-year period after vacating the rental unit.

1.1 An order that the landlord pay a specified sum to the former tenant as general compensation in an amount not exceeding the equivalent of 12 months of the last rent charged to the former tenant. An order under this paragraph may be made regardless of whether the former tenant has incurred any actual expenses or whether an order is made under paragraph 2.

1.2 An order that the landlord pay a specified sum to the former tenant for reasonable out-of-pocket moving, storage and other like expenses that the former tenant has incurred or will incur.

2. An order for an abatement of rent.

3. An order that the landlord pay to the Board an administrative fine not exceeding the greater of $10,000 and the monetary jurisdiction of the Small Claims Court.

4. Any other order that the Board considers appropriate. 2006, c. 17, s. 57 (3); 2020, c. 16, Sched. 4, s. 9 (1).

(4) In an application under subsection (1), the Board may find that the landlord gave a notice of termination in bad faith despite a previous finding by the Board to the contrary. 2006, c. 17, s. 57 (4).

SWT-14614-18 (Re), 2018 CanLII 88677 (ON LTB)

20. For all of these reasons, I find on the balance of probabilities that the Landlords served the N12 Notice in bad faith.

21. Whether the Tenants vacated the unit on December 31, 2017 or January 30, 2018 according to the competing timelines of the parties, it was not disputed that the Tenants moved out of the rental unit as a result of the N12 Notice. I find on the balance of probabilities that the date listed in the T5 Application of January 13, 2018 is actually more likely accurate than either of the two dates offered at the hearing since this date is supported by a U-Haul receipt that would only logically pertain to the date that the Tenants moved out of the rental unit.

22. Lastly, on the Landlords’ own evidence, no person listed in paragraphs (a), (b), (c) or (d) of subsections 49(1) or 49(2) of the Act occupied the rental unit as of the date of the hearing. Specifically, neither the Landlords nor their son, nor anyone else moved into the rental unit. Even if I were to accept the Landlords’ evidence that the Tenants did not move out of the rental unit until January 30, 2018, this would leave the unit vacant for over two and a half months. As the Landlords offered no reasonable explanation for this lack of occupation and no definite timeline for their son’s future and theoretical move from Toronto, I find that no one has occupied the rental unit within a reasonable time after the Tenants vacated the rental unit.

23. In light of all of the evidence, I therefore find that the Landlords gave the Tenants the notice in bad faith.

TST-00312-18 (Re), 2019 CanLII 87633 (ON LTB)

12. By the Tenant’s own evidence, the purchaser’s mother or mother-in-law occupies the rental unit and has been doing so since at least the end of October, 2018 or beginning of November, 2018. A parent of the purchaser or of the purchaser’s spouse are people referred to in section 49(1)(c) of the Act. I am satisfied that this individual occupied the rental unit within a reasonable time after the Tenant vacated the rental unit. I do not think that the fact that the N12 Notice indicates that the purchaser (as opposed to the purchaser’s parent or a spouse’s parent) intended to move in is in itself determinative of bad faith. Section 57(1)(b) refers a situation where none of the people listed in section 49(1) or (2) move into the rental unit (it does not appear to be material if the person who moved into the rental unit is not the same person listed on the N12 Notice). Therefore, I find that this element of section 57(1)(b) is not satisfied.