Tenancy by Virtue of Agreement of Purchase and Sale (Termination)

From Riverview Legal Group


Caselaw.Ninja, Riverview Group Publishing 2021 ©
Date Retrieved: 2022-08-11
CLNP Page ID: 1654
Page Categories: [Personal Use Application (LTB)]
Citation: Tenancy by Virtue of Agreement of Purchase and Sale (Termination), CLNP 1654, retrieved on 2022-08-11
Editor: P08916
Last Updated: 2021/09/15


Residential Tenancies Act, 2006, S.O. 2006, c. 17[1]

58 (1) A landlord may give a tenant notice of termination of their tenancy on any of the following grounds:

1. The tenant has persistently failed to pay rent on the date it becomes due and payable.
2. The rental unit that is the subject of the tenancy agreement is a rental unit described in paragraph 1, 2, 3 or 4 of subsection 7 (1) and the tenant has ceased to meet the qualifications required for occupancy of the rental unit.
3. The tenant was an employee of an employer who provided the tenant with the rental unit during the tenant’s employment and the employment has terminated.
4. The tenancy arose by virtue of or collateral to an agreement of purchase and sale of a proposed unit within the meaning of the Condominium Act, 1998 in good faith and the agreement of purchase and sale has been terminated. 2006, c. 17, s. 58 (1).
(2) The date for termination specified in the notice shall be at least the number of days after the date the notice is given that is set out in section 44 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. 58 (2).


[1]

CEL-74350-18 (Re), 2018 CanLII 86150 (ON LTB)[2]

1. The Tenant and Landlord entered into an Agreement of Purchase and Sale (APS) of the unit on May 22, 2016. The closing date of the APS was in September 2017 which was extended to October 30, 2017. The Tenant’s husband at this time was in coma and the sale did not close. The APS was again extended to November 28, 2017 at which time the Tenant defaulted and failed to complete the final closing.

2. The Tenant requested an extension to November 30, 2017 with all terms and conditions in the APS to remain the same which was refused by the Landlord. The Landlord sent the Tenant a notice of default on November 29, 2017 and again on December 5, 2017.

3. The Tenant had moved into the unit because the Tenant and Landlord entered into an occupancy license agreement executed on March 21, 2017. The occupancy agreement is viewed as a tenancy before the APS closed.

4. Since the APS terminated, on December 22, 2017, the Landlord gave the Tenant an N8 Notice to terminate the tenancy on February 28, 2018 in accordance with subsection 58(1)4 of the Residential Tenancies Act, 2006 (the 'Act') which states:

58 (1) A landlord may give a tenant notice of termination of their tenancy on any of the following grounds:
4. The tenancy arose by virtue of or collateral to an agreement of purchase and sale of a proposed unit within the meaning of the Condominium Act, 1998 in good faith and the agreement of purchase and sale has been terminated. 2006, c. 17, s. 58 (1).

5. The Landlord in negotiations offered to amend the closing of the APS to February 20, 2018. Although, these negotiations took place after December 22, 2017 when the N8 Notice was issued, I do not find these negotiations invalidate the N8 Notice to terminate the tenancy.

6. The Landlord was agreeable to granting a conditional reinstatement of the APS but the Tenant did not comply and complete the transaction to close on February 20, 2018, nor did she pay the occupancy fees/ arrears. It was clear from the letter from the Landlord’s lawyer to the Tenant’s lawyer that should the Tenant “fail to complete the transaction as aforesaid, the transaction shall remain terminated”. There was also no acceptance from the Tenant or response to the Landlord’s conditional offer. As such, there is no binding agreement. The termination of the APS therefore remains as of November 28, 2017.

7. I have considered all of the disclosed circumstances in accordance with subsection 83(2) of the Residential Tenancies Act, 2006 (the 'Act'), and find that it would be unfair to grant relief from eviction pursuant to subsection 83(1) of the Act. The Tenant is seeking an order to extend the PAS closing date to April 24, 2018, but this is outside the Board’s jurisdiction.

[2]

References

  1. 1.0 1.1 Residential Tenancies Act, 2006, S.O. 2006, c. 17, <https://www.ontario.ca/laws/statute/06r17#BK256>, reterived 2021-09-15
  2. 2.0 2.1 CEL-74350-18 (Re), 2018 CanLII 86150 (ON LTB), <https://canlii.ca/t/hv4jk>, retrieved on 2021-09-15