Is a Tenant Entitled to Selling Price Details or Other Information When Being Evicted to Enable a Buyer of the Property to Move In ?

As Part of the Eviction Process That Requires Good Faith Termination and Eviction of a Tenant When a Landlord Is Selling to a Buyer Who Professes An Intention to Move Into the Rental Unit Occupied By the Tenant, the Tenant May Request Details of the Sales Transaction Including the Selling Price.

Understanding the Disclosure Requirements When Evicting a Tenant For Own Use By a Purchaser Includes Sale Details

Residential Notice of Eviction Document There are times when a landlord wishes to sell a property and the buyer of the property, or a specifically close family member of the buyer, genuinely wants to make a residence of the property; and accordingly, the buyer of the property will require the current tenant to move out.

The Law

The law that provides the right for a landlord to evict a tenant when a purchaser of the property, or close family member, among other specific persons, intend to occupy the property, is provided within the Residential Tenancies Act, 2006, S.O. 2006, Chapter 17, which states:

Notice, purchaser personally requires unit

49 (1) A landlord of a residential complex that contains no more than three residential units who has entered into an agreement of purchase and sale of the residential complex may, on behalf of the purchaser, give the tenant of a unit in the residential complex a notice terminating the tenancy, if the purchaser in good faith requires possession of the residential complex or the unit for the purpose of residential occupation by,

(a) the purchaser;

(b) the purchaser’s spouse;

(c) a child or parent of the purchaser or the purchaser’s spouse; or

(d) a person who provides or will provide care services to the purchaser, the purchaser’s spouse, or a child or parent of the purchaser or the purchaser’s spouse, if the person receiving the care services resides or will reside in the building, related group of buildings, mobile home park or land lease community in which the rental unit is located.

Same, condominium

(2) If a landlord who is an owner as defined in clause (a) or (b) of the definition of “owner” in subsection 1 (1) of the Condominium Act, 1998 owns a unit, as defined in subsection 1 (1) of that Act, that is a rental unit and has entered into an agreement of purchase and sale of the unit, the landlord may, on behalf of the purchaser, give the tenant of the unit a notice terminating the tenancy, if the purchaser in good faith requires possession of the unit for the purpose of residential occupation by,

(a) the purchaser;

(b) the purchaser’s spouse;

(c) a child or parent of the purchaser or the purchaser’s spouse; or

(d) a person who provides or will provide care services to the purchaser, the purchaser’s spouse, or a child or parent of the purchaser or the purchaser’s spouse, if the person receiving the care services resides or will reside in the building, related group of buildings, mobile home park or land lease community in which the rental unit is located.

Period of notice

(3) The date for termination specified in a notice given under subsection (1) or (2) shall be at least 60 days after the notice is given 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.

Earlier termination by tenant

(4) A tenant who receives notice of termination under subsection (1) or (2) may, at any time before the date specified in the notice, terminate the tenancy, effective on a specified date earlier than the date set out in the landlord’s notice.

Same

(5) The date for termination specified in the tenant’s notice shall be at least 10 days after the date the tenant’s notice is given.

Good Faith Duty

As said above, the eviction of a tenant for the own use of a purchaser must occur in good faith with a genuine intention for the purchaser, among specific others, to occupy the property following the purchase.  As for determining whether the purchaser, among specific others, is genuinely intending to occupy the rental unit, the legal test is the same as the test for determining whether a landlord is genuinely intending to occupy the rental unit.  Such was said in the case of J.B. and S.B. v. S.A.S. and D.A.TSL-76546-16 (Re), 2016 CanLII 71338 where it was stated:

17.  Salter v. Beljinac, 2001 CanLII 40231 (ON SCDC), [2001] O.J. No. 2792 is the leading case involving a landlord’s own use application under section 48 of the Act. I find that the principle that was established in Salter can be applied to a purchaser’s own use application under section 49 of the Act. According to that case, the test of good faith is the purchaser’s genuine intention to occupy the premises and not the purchaser’s motives that influence that intention.

Disclosure of Details of Transaction

When a tenant challenges the eviction process on the basis that the purchaser lacks a genuine intent to occupy the rental unit, the tenant may rightfully request disclosure of all relevant facts regarding the transaction including the selling price.  This right to the details of the property purchase transaction was stated by the Divisional Court in the case of Riddell v. Huynh, 2021 ONSC 4820 wherein it was said:

[10]  In one area, however, the Board erred in law and the error gave rise to substantive unfairness to the tenant.  The critical issue before the Board was the bona fides of the purported sale from the landlord to her brother.  As a long line of cases before the Board shows, where the sale transaction is to a close family member, this is a warning sign, or flag, that the transaction may not be genuine.  In this case, the unit was not exposed to the open market.  No real estate agent was involved.  It was a private deal.  The agreement of purchase and sale was disclosed, but the price of the transaction was redacted.  The appellant requested a complete copy of this critical document.  This request was denied by the Board and no proper justification was given for denying this request.

[11]  This was no “fishing expedition”.  The price was one of the critical indicia to consider in determining the bona fides of the transaction.  So were payment terms and financial arrangements that were made to meet those payment terms.  Although the prior applications to evict the tenant for “personal use” did not give rise to an issue estoppel or res judicata, they did provide context for the dispute.  So, too, did the history of conflict, including evidence adduced by the tenant that the landlord had recently tried to impose another illegal rent increase and had threatened to sell the unit if the tenant did not accede to the improper demand for rent.  Just days after this, the landlord purported to agree to the sale to her brother.

[12]  There were many “alarm bells” that this was another attempt by the landlord to oust the tenant without a proper justification.  The tenant was entitled to test the evidence relevant to this issue, and this included full details of the sale transaction.  These were proper questions, the Board erred in disallowing them, and this error may have affected the outcome.  If the price and the payment arrangements did not reflect reasonable commercial terms, the inference that the transaction was not genuine would have become more and more irresistible.

[13]  On my reading the erroneous ruling respecting full disclosure of the terms of the sale transaction followed as an extension of the Board’s efforts to constrain the appellant’s conduct in the hearing within reasonable bounds.  The Board’s discretion is broad in respect to the conduct if hearings, but not so broad as to preclude a party from testing critical evidence on a key issue in dispute.

Summary Comment

Generally, when selling a property, a landlord may seek to evict a tenant where a purchaser, among other specific persons closely connected to the purchaser, genuinely intend to occupy the rental unit of the tenant; however, the tenant may challenge the eviction process in an effort to demonstrate a lack of genuine intent.  During this process, the tenant may request detailed specifics of the property purchase transaction such as the selling price, among other details.

Need Help? Let's Get Started Today

ATTENTION: Do not send any confidential information through this website form.  Use this website form only for making an introduction.

Eviction.Supportis an affordable Paralegal in:

For more information, fill out the form below to send a direct inquiry to Eviction.Support

ATTENTION: Confidential details about your case must not be sent through this website.  Use of this website does not establish a legal-representative/client relationship.  Do not include confidential details about your case by email or phone.  Use this website only for an introduction with a Eviction.Support representative.
Eviction.Support

10265 Yonge Street, Suite 200
Richmond Hill, Ontario,
L4C 4Y7

(855) 582-2273 or (855) LTB-CARE
shemeshparalegal@gmail.com

Hours of Business:

9:00AM – 5:00PM
9:00AM – 5:00PM
9:00AM – 5:00PM
9:00AM – 5:00PM
9:00AM – 5:00PM
Monday:
Tuesday:
Wednesday:
Thursday:
Friday:

By appointment only.  Please call for details.