What to Know About Terminating a Residential Tenancy Due to Demolition, Conversion, Substantial Repair & Renovation

For various reasons, landlords may decide to demolish, convert, repair, or renovate their property. In these cases, landlords will require vacant possession before beginning construction, and this may necessitate terminating residency for current tenants.

It is crucial to follow the law where termination of residency concerned. In this article, we will outline the steps that must be taken in order to abide by the Residential Tenancies Act of 2006.

The Residential Tenancies Act of 2006

The Residential Tenancies Act of 2006 or RTA outlines the unique relationship between landlord and tenant. The act recognizes that there is always a potential for landlords to require repairs, renovations, conversions, and other forms of property development. And in these situations, the RTA outlines the specific procedures that must be taken in order to have vacant possession before changes are made. If, as a landlord, you fail to abide by these procedures, detrimental legal consequences may result.

In What Situations Can a Landlord Give Notice of Termination of a Tenancy?

The Residential Tenancies Act cites the following:

(1) A landlord may give notice of termination of a tenancy if the landlord requires possession of the rental unit in order to,

(a) demolish it;

(b) convert it to use for a purpose other than residential premises; or

(c) do repairs or renovations to it that are so extensive that they require a building permit and vacant possession of the rental unit. 2006, c. 17, s. 50 (1).

Providing Adequate (120-Day) Notice

Landlords must provide adequate notice to tenants that demolition, renovations, repairs, or conversion will be taking place. This is called a notice to terminate tenancy, and it must be provided on the standard N13 form found here. Read the instructions for filling out the form here. The termination date must be a minimum of 120 days from the notice date.

After Presentation of the N13 Notice

Once the N13 notice has been provided, specific obligations for the landlord will be triggered, as will specific rights for the tenant.

First, the tenant has a right of first refusal, which gives them the option to reoccupy the premises after construction has been completed. If this right is exercised, the post-renovation rent cannot exceed the current rent.

Furthermore, the tenant has the option to terminate their tenancy a minimum of 10 days after they receive the N13 notice. This will be true even if their lease ends after the 120-day notice period.

Compensation

In some situations, landlords may be required to offer alternative units or compensation to the tenant as well. This depends on the situation, how many extra residential units are available, and whether or not the tenant will be exercising their right of refusal. See sections 52 and 54 of the RTA.

Our Condo Lawyers Can Assist You With Legally Terminating Residential Tenancy

A condo lawyer can assist you in terminating residential tenancy prior to renovating, converting, or demolishing your property. It is essential to find quality condo lawyers in Toronto who have experience in this area of the law.

At HLD, we specialize in Residential Tenancy Law, and as condo lawyers, we have successfully advised and represented landlords for many years. If you plan on substantially renovating, repairing, demolishing, or converting your property, we will work with you to avoid complications, fines, and other complicated legal problems.

Horlick, Levitt, and Di Lella are the condo lawyers Toronto landlords trust. To schedule your free consultation with HLD Lawyers today, click here.