Application of the Act (RTA)

From Riverview Legal Group


Caselaw.Ninja, Riverview Group Publishing 2021 ©
Date Retrieved: 2024-05-18
CLNP Page ID: 1148
Page Categories: [Contract Law, Leases, & Sub-Letting (LTB)], [RTA Exempt Tenancies]
Citation: Application of the Act (RTA), CLNP 1148, <https://rvt.link/x>, retrieved on 2024-05-18
Editor: Sharvey
Last Updated: 2022/08/30


Cowie v. Bindlish, 2010 ONSC 2628 (CanLII)[1]

[16] It is my respectful view that neither view was a sufficient basis on which the board was entitled to decline jurisdiction. Both board members erred in law, albeit differently, in their respective interpretation of section 5 (i) of the Act and we must now interfere. The section explicitly creates an exemption from the general application of the Act only if the person in the category of the respondent “lives in the building in which the living accommodation is located”. That means that the respondent was required to live in the building at the time when she rented the room to the appellant in order for the exemption to apply. It was not sufficient that she merely intended to move in at some subsequent time. Nor was it sufficient that she actually did move in at a subsequent time.

[17] Any interpretation of section 5 (i) of the Act that would permit the respondent to unilaterally cause the board to be deprived of its jurisdiction to hear the appellant’s application by forming an intention in her own mind without communicating it to the appellant or by moving into the house at a later time would be contrary to the language of the section and the intention of the Legislature and would be grossly unfair. It would also effectively result in an unwarranted revision of the tenancy agreement that the parties had made.

Quin v McCaughey, 2016 ONSC 7921 (CanLII)[2]

[20] The Board member and the Vice Chair determined that section 5(i) of the Act governed the tenancy at the time this tenancy agreement was entered into. At the time, the appellant was cohabiting with the respondent’s daughter. The respondent landlady never agreed to a tenancy agreement within the meaning of the Act. The Board therefore determined that the appellant’s living accommodation was within the exemption in section 5(i) of the Act.

[21] The decisions of the Board are reasonable for the following reasons:

(a) The Board’s determinations that there is only one kitchen and bathroom in the unit and that the appellant was therefore required to share them with the respondent’s daughter who lived with the appellant when he entered into the tenancy agreement, are questions of fact that are not subject to appeal;
(b) As the Board found, contrary to the assertion of the appellant, the plain and ordinary meaning of the word “child” in section 5(i) of the Act does not exclude a situation where the tenant is married to the “child” of the landlord or this type of tenancy;
(c) There is no authority for the appellant’s proposition that the legislators intended to treat spouses differently from others subject to the exemption in section 5(i) of the Act;
(d) The finding that the determination is made in this case at the time the agreement is entered into, is consistent with the decisions in Cowie v. Bindlish, paras 4, 16 and 17 and Hooey v. Bomze, 1993 CarswellOntario 2047 (Gen.Div). Those decisions make it clear that one party alone cannot change the legal nature of the relationship. This means that the appellant could not decide that he could rely on the protections in the Act just because the landlady’s daughter Meghan was no longer sleeping in the unit; and
(e) To enable a party to opt in and out of the exemption is not reasonable as it would allow the appellant to unilaterally revise the terms of the tenancy agreement.


[22] For these reasons, the Appeal is dismissed.

[2]

SWL-17145-18 (Re), 2018 CanLII 88667 (ON LTB)[3]

20. In this case, when the Landlord moved out, I find he made a unilateral decision that caused the Act to apply after he vacated. I do not view this to be an “unwarranted” revision of the tenancy that is unfair to the Tenant; rather it is a reasonable revision of the tenancy agreement reflecting the reality of the Tenant’s changed living arrangements. As a result of the Landlord’s decision to vacate the Tenant, gained the legal protection offered by the Act.

21. The Landlord and his spouse, expecting their first baby, purchased a new primary residence and permanently vacated the rental unit in order to permanently move into their family home. This action caused the exemption set out in subsection 5(i) to cease to apply as the Tenant was no longer required to share a kitchen or bathroom with the owner or a family member of the owner. Once the exemption in subsection 5(i) of the Act ceased to apply, the tenancy became subject to the Act in accordance with subsection 3(1) of the Act.

22. I must determine exactly when the Act began to apply to this tenancy. The Landlord testified that he moved out of the rental unit in January 2018, while the Tenant insisted he moved out in December 2017. With no other supporting evidence, I find the Landlord vacated on or before December 31, 2017, as the Landlord testified he turned the gas to the stove off sometime before January 1, 2018.

TST-78142-16 (Re), 2016 CanLII 88280 (ON LTB)[4]

15. Section 5(i) of the Act states that the Act does not apply if the tenant is required to share a kitchen or bathroom with the owner.

16. The Landlord testified that he moved into one of the units in the residential complex on September 14, 2016, after the Tenant’s tenancy began. The Landlord’s unit has a bathroom but the Landlord shares a kitchen with three other units. The Landlord testified that he told the Tenant that he was moving into the unit 7 – 10 days prior to moving in but he did not discuss with the Tenant how this would impact the terms of the Tenant’s tenancy.

17. There was no evidence before me that the Landlord moved into the residential complex with the bad faith intention of causing the rental unit to be exempt from the application of the Act, under section 5(i). In fact, it was the Tenant’s legal representative who raised the issue of the application of the Act at the hearing.

18. I nevertheless find that the Act applies to the rental unit for the purpose of this hearing, despite section 5(i) of the Act. The Landlord cannot unilaterally change a fundamental aspect of the Tenant’s tenancy (i.e. whether the Act applies to it) by moving into the residential complex after the tenancy has already begun. (See Cowie v. Bindlish, 2010 ONSC 2628 (CanLII), paras. 16-17[1]). Accordingly, I am satisfied on a balance of probabilities that the Act applied to the rental unit during the Tenant’s tenancy, including at the time of the lock out.

TST-92268-18 (Re), 2018 CanLII 123244 (ON LTB)[5]

12. EX brought a preliminary motion as to whether the Residential Tenancies Act, 2006 (the ‘Act’) should apply in a situation where the Landlord’s child is living on the property and sharing a bathroom and kitchen with the Tenants. Ordinarily in these circumstances section 5(i) of the Act would apply to remove the tenancy from the jurisdiction of the Board. However, the evidence demonstrates that it was never disclosed to the Tenants prior to their making their tenancy agreement and moving in to the rental unit that the daughter of the Landlords was resident in the unit. There were a number of opportunities to do so: the text exchange about a girl residing in the living room that would start in April; the rental agreements provided by EX and signed by the Tenants; advising the Tenants at any time before they moved in on January 5, 2018 that EX was a resident. Even when they moved in, the Tenants were unaware that she had possessions there and was apparently resident.

13. I accept the testimony of the Tenants on this issue. I find that EX did not disclose at any point when the tenancy agreement was entered into that she, as a child of the Landlord, was resident in the unit. The Divisional Court case of Cowrie v. Bindlish, 2010 ONSC 2628[1] says:

The section [section 5(i)] explicitly creates an exemption from the general application of the Act only if the person in the category of the respondent “lives in the building in which the living accommodation is located”. That means that the respondent was required to live in the building at the time when she rented the room to the appellant in order for the exemption to apply. It was not sufficient that she merely intended to move in at some subsequent time. Nor was it sufficient that she actually did move in at a subsequent time.
Any interpretation of section 5 (i) of the Act that would permit the respondent to unilaterally cause the board to be deprived of its jurisdiction to hear the appellant’s application by forming an intention in her own mind without communicating it to the appellant or by moving into the house at a later time would be contrary to the language of the section and the intention of the Legislature and would be grossly unfair. It would also effectively result in an unwarranted revision of the tenancy agreement that the parties had made.
Any such interpretation would also, in my view, be inconsistent with the objectives of the Act as reflected in sections 1 and 3 (1) of the Act.

14. I find that in the application of Cowrie to the circumstances, that neither EX nor the owner Landlord provided any information to the Tenants on which they could have been advised that they were sharing the rental unit with an owner and that the Act would not apply to their tenancy. I find that the Act applies to this tenancy.

[5]

References

  1. 1.0 1.1 1.2 Cowie v. Bindlish, 2010 ONSC 2628 (CanLII), <https://canlii.ca/t/29wbs>, retrieved on 2021-01-27
  2. 2.0 2.1 Quin v McCaughey, 2016 ONSC 7921 (CanLII), <https://canlii.ca/t/gw54r>, retrieved on 2022-06-01
  3. SWL-17145-18 (Re), 2018 CanLII 88667 (ON LTB), <https://canlii.ca/t/hv7qb>, retrieved on 2021-01-27
  4. TST-78142-16 (Re), 2016 CanLII 88280 (ON LTB), <https://canlii.ca/t/gw53m>, retrieved on 2021-01-27
  5. 5.0 5.1 TST-92268-18 (Re), 2018 CanLII 123244 (ON LTB), <https://canlii.ca/t/hwqcs>, retrieved on 2021-01-28