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Definitions |
Fixed-term tenancy: a tenancy agreement for a
specific period of time, usually one year.
Landlord: includes a mortgagee who tries
under the terms of a mortgage to evict a tenant from a rental unit.
Month-to-month tenancy: a tenancy agreement
for a month at a time with no specific end date.
Mortgagee: a person, mortgage company or
financial institution that takes a mortgage interest in a property
as security for a loan.
Notice of termination: a written notice by
the landlord to end a tenancy.
School age children: for the purpose of this
policy, school age children are children enrolled in kindergarten
and up to, and including, Grade 12.
Tenancy agreement: a contract between a
landlord and a tenant that sets out the basic rules for living in a
rental unit. It can be written, oral or implied.
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Policy |
When a landlord doesn’t make their mortgage
payments, a mortgagee may decide to foreclose on the rental unit. In
spite of what a mortgage agreement may say, a mortgagee must follow
the Act when giving a tenant notice to move. This applies
even if a mortgagee doesn’t collect rent from a tenant.
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A mortgagee must honour the terms of any tenancy
agreement between a landlord and tenant. A tenancy agreement
survives a foreclosure.
<><><><> This policy applies even though the landlord may have rented the
property without the knowledge or consent of the mortgagee.
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If a mortgagee sells a rental unit, they can give
the tenant notice to move:
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if the purchaser asks them, in writing, to give the tenant
notice because the purchaser plans to occupy the rental unit or
plans to have one of the following family members move in: spouse,
adult children or stepchildren, parents, mother-in-law,
father-in-law; and
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once all the conditions for sale are finalized. For
example: The purchaser has received their financing.
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When giving a tenant
notice, a mortgagee
must deliver the
notice to the tenant in person. The mortgagee can also hand it to
an adult at the rental unit. If
there is more than one tenant, the mortgagee must put all the names
on the notice. However, generally the mortgagee doesn’t need to give
each tenant their own copy of the notice. If the mortgagee has
difficulty serving the notice to any party, they can contact the
Branch for permission to serve the notice in some other way.
If there are no school age children living
in the rental unit and:
the tenant is on a month-to-month tenancy, the mortgagee
can end the tenancy by giving notice of at least one rental
payment period;
the tenant is on a fixed-term tenancy agreement, the
mortgagee must give notice that they won’t renew the agreement
at least three months before the agreement ends. For
example: If the tenancy agreement ends on September 30, the
mortgagee must give the tenant notice on or before June 30.
If there are school age children living in
the rental unit, the tenant can stay in the unit until the end of
the school year as long as the children go to a school that is
conveniently accessible to the rental unit. This applies to both
month-to-month and fixed-term tenancy agreements. If a fixed-term tenancy agreement ends during the
school year and the mortgagee sells the unit, they can still give
notice they won’t renew the agreement because the purchaser plans to
move in. However, the tenant can stay in the rental unit until the
end of the school year, if there are no violations of the tenancy
agreement. For example: The tenancy agreement ends March 31 and
the mortgagee sells the unit in December. The mortgagee must give
the tenant notice by December 31, but the tenant can continue to
live in the unit until the end of the school year.
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When a mortgagee ends a tenancy because the property or unit is
sold, the mortgagee is responsible to pay a tenant’s reasonable
moving expenses, up to a maximum of $350.
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After receiving a notice, a tenant on a
fixed-term tenancy agreement may give the mortgagee a notice of
at least one rental payment period. For example: After the
tenant receives notice in December, they find another place for
March 1. They can give notice in January to leave at the end of
February.
<><><><> A mortgagee is required to follow the Act to end a tenancy.
If a tenant receives notice that a mortgagee has applied to the
Court of Queen’s Bench for possession of the rental unit, they
should contact the Branch or a lawyer immediately.
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