LEASE ASSIGNMENT Reasons of income-based refusal - Updated with recent jurisprudence -
LEASE ASSIGNMENT Reasons of income-based refusal - Updated with recent jurisprudence

LEASE ASSIGNMENT Reasons of income-based refusal - Updated with recent jurisprudence

When a landlord receives a notice of lease assignment from their tenant, their basic right is to conduct a financial and behavioral investigation of the applicant in order to make an informed decision to accept or refuse the applicant.

Over the years, the Administrative Housing Tribunal has clarified and established the valid reasons for accepting or refusing candidates.

The grounds for refusal must be serious.

More recently, the Court explains to us that, without requiring a specific document, the owner has the right to ask the candidate for recent proof of his income and that he has the financial capacity to assume the various obligations (rent and electricity, internet, insurance for instance) related to the lease.

Read more

By Me Jean-Olivier Reed.

Legal

  • Endorsement of an open-ended lease: Can the surety be terminated? -

    Endorsement of an open-ended lease: Can the surety be terminated?

    The landlady appealed to the Court of Québec against a decision of the Régie du logement refusing to hold the surety liable for the tenant’s obligations. The landlady has a lease in effect from September 1, 2017 to August 31, 2018. On March 24, 2018 the surety signed a document entitled: Lease endorsement. This signed endorsement provides:

    “I, the undersigned... hereby agree to endorse the lease signed between the tenant and the landlady in favour of the landlady, for as long as the tenant designated above remains in this unit.
    I hereby become jointly and severally liable with the tenant for the performance of the obligations of the said lease for the duration of the lease and for future renewals.”

Legal

  • Assignment of lease or how to circumvent the law? -

    Assignment of lease or how to circumvent the law?

    A recent article highlighted the assignment of leases.
    It encouraged tenants to assign their lease rather than give notice of their wish not to renew the lease. Therefore the tenants can choose their successor themselves.

    The Association des Propriétaires du Québec (APQ) can only disagree with this initiative.
    The choice of the future tenant is a right that belongs to the rental property owner. In addition to the aspect of meeting the future tenant, the landlord must ensure the peaceful enjoyment of the premises and be sure that the tenant will meet his financial obligations.

Legal

  • Repossession of housing : The personal considerations of the tenant -

    Repossession of housing : The personal considerations of the tenant

    The tenant refers mainly to her great disappointment at the idea of leaving her present dwelling to which she is very attached after many years of occupation of the housing. She is also afraid that she will not be able to relocate at a reasonable price because she claims that the housing that would suit her best is often overpriced for her means. She argues that the landlady could house her mother on the ground floor, in her own home. This housing of 5 and a half rooms would be more than spacious enough to accommodate three people, while the son of the landlady could eventually even settle in the basement. Also, given the advanced age of the landlady’s mother and the many steps to access her upstairs dwelling, the tenant questions the mother’s physical ability to truly settle in the dwelling concerned.

Word of the editor

  • Decision on cannabis from the Supreme Court of Canada – Its Impact on the rental housing owner -

    Decision on cannabis from the Supreme Court of Canada – Its Impact on the rental housing owner

    On March 10, 2022, the Supreme Court of Canada decided to hear the appeal in Janick Murray-Hall v. Attorney General of Québec(1), concerning a decision on the possibility of growing cannabis at home and the legality of the Cannabis Regulation Act(2).

    By agreeing to hear this case, the country’s highest court could rule that the current provisions prohibiting the cultivation of cannabis at home must be struck down.

    If this is the case, it would mean that tenants could grow cannabis at home.

Legal

More news

Real-estate

Building permits, November 2017 -

Building permits, November 2017

Source: statistique Canada

The value of building permits issued by Canadian municipalities declined 7.7% to $7.7 billion in November, the first decrease in three months. Nationally, the value of permits for all building components declined, with the exception of single-family dwellings.

Canadian housing starts trend stable in December -

Canadian housing starts trend stable in December

Source: SCHL

The trend in housing starts was 226,777 units in December 2017, compared to 226,178 units in November 2017, according to Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.

“Despite the variation in activity across the country, the national trend in housing starts held steady at its highest level since 2008,” said Bob Dugan, CMHC’s chief economist. “Apartment starts in urban centres were up 6.2% in 2017 compared to 2016.”

Legal

LEASE ASSIGNMENT Reasons of income-based refusal - Updated with recent jurisprudence -

LEASE ASSIGNMENT Reasons of income-based refusal - Updated with recent jurisprudenceArticle locked

When a landlord receives a notice of lease assignment from their tenant, their basic right is to conduct a financial and behavioral investigation of the applicant in order to make an informed decision to accept or refuse the applicant.

Over the years, the Administrative Housing Tribunal has clarified and established the valid reasons for accepting or refusing candidates.

The grounds for refusal must be serious.

More recently, the Court explains to us that, without requiring a specific document, the owner has the right to ask the candidate for recent proof of his income and that he has the financial capacity to assume the various obligations (rent and electricity, internet, insurance for instance) related to the lease.

Endorsement of an open-ended lease: Can the surety be terminated? -

Endorsement of an open-ended lease: Can the surety be terminated?Article locked

The landlady appealed to the Court of Québec against a decision of the Régie du logement refusing to hold the surety liable for the tenant’s obligations. The landlady has a lease in effect from September 1, 2017 to August 31, 2018. On March 24, 2018 the surety signed a document entitled: Lease endorsement. This signed endorsement provides:

“I, the undersigned... hereby agree to endorse the lease signed between the tenant and the landlady in favour of the landlady, for as long as the tenant designated above remains in this unit.
I hereby become jointly and severally liable with the tenant for the performance of the obligations of the said lease for the duration of the lease and for future renewals.”

Regulation

Bill tabled to limit the right to amend a lease for a new housing -

Bill tabled to limit the right to amend a lease for a new housing

The Association des Propriétaires du Québec (APQ) is against this bill, which once again wants to limit the rights of rental housing owners.

Remember that clause F of the mandatory lease form, which is discussed here, is an important clause for any owner of new housing.
If checked, this clause provides that the owner can modify, in the first 5 years of existence of the building, the price of the rents without the tenant being able to refuse the increases transmitted.

The repossession of a housing: you are entitled to it! -

The repossession of a housing: you are entitled to it!

Housing repossession is a fundamental right that rental property owners can exercise. But often this housing repossession is accompanied by binding and even unfair rules according to many rental property owners. Owners are entitled to the repossession of their house!

The repossession of a housing is one of the most restrictive processes for a homeowner; not everyone easily repossesses a house that he wants to take back!