Notice for Renovation or Repair (Compensation)

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

52 A landlord shall compensate a tenant in an amount equal to three months rent or offer the tenant another rental unit acceptable to the tenant if,

(a) the tenant receives notice of termination of the tenancy for the purposes of demolition or conversion to non-residential use;

(b) the residential complex in which the rental unit is located contains at least five residential units; and

(c) in the case of a demolition, it was not ordered to be carried out under the authority of any other Act. 2006, c. 17, s. 52.

53 (1) A tenant who receives notice of termination of a tenancy for the purpose of repairs or renovations may, in accordance with this section, have a right of first refusal to occupy the rental unit as a tenant when the repairs or renovations are completed.

(2) A tenant who wishes to have a right of first refusal shall give the landlord notice in writing before vacating the rental unit.

(3) A tenant who exercises a right of first refusal may reoccupy the rental unit at a rent that is no more than what the landlord could have lawfully charged if there had been no interruption in the tenant’s tenancy.

(4) It is a condition of the tenant’s right of first refusal that the tenant inform the landlord in writing of any change of address.

73 The Board shall not make an order terminating a tenancy and evicting the tenant in an application under section 69 based on a notice of termination under section 50 unless it is satisfied that,

(a) the landlord intends in good faith to carry out the activity on which the notice of termination was based; and

(b) the landlord has,

(i) obtained all necessary permits or other authority that may be required to carry out the activity on which the notice of termination was based, or

(ii) has taken all reasonable steps to obtain all necessary permits or other authority that may be required to carry out the activity on which the notice of termination was based, if it is not possible to obtain the permits or other authority until the rental unit is vacant. 2006, c. 17, s. 73.

Compensation under s. 48.1, 52, 54 or 55

73.1 (1) If the landlord compensated the tenant under section 48.1, 52, 54 or 55, as the case may be, in connection with a notice of termination under section 48 or 50 and the Board refuses to grant an application under section 69 for an order terminating the tenancy and evicting the tenant based on the notice, the Board may order that the tenant pay back the compensation to the landlord. 2017, c. 13, s. 14.

Marineland of Canada Inc. v. Olsen, 2011 ONSC 6522 (CanLII)

[16] The landlord also raised the issue of set-off on the request to review. The Board member questioned whether the Board had jurisdiction to make such an order and then concluded that this was an issue for the enforcement stage.

[17] In my view, this was an error in law and an unreasonable conclusion. The Board was being asked to award compensation to the tenants for amounts that the landlord improperly retained. While the tenants were entitled to $3,000.00 in compensation because of the N13 Notice, the landlord was owed more than $3,000.00 by them at the time of their application. The amount owing for arrears of rent should have been taken into consideration in determining the amount of compensation owing. Had that been done, the Board would have had to conclude that the tenants were owed nothing in compensation at the time of the application because of the set-off.

[18] This conclusion is in keeping with the purposes of the Act set out in s. 1, which include “to balance the rights and responsibilities of residential landlords and tenants and to provide for the adjudication of disputes and for other processes to informally resolve disputes.” I note that counsel for Marineland acknowledged that should it seek to pursue any remaining amounts owing from the tenants, it would be required to set off the $3,000.00 of compensation that it owed to the tenants.