Section 7

Notice of Termination

Sub-Section 7.9

Notice by Mortgagee


Legislation


s. 1(1), 98, 184(2), The Residential Tenancies Act
s. 17, Residential Tenancies Regulation


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 a landlord to end a tenancy. Landlords must use the prescribed form when giving a tenant a notice of termination (the form set out in the Residential Tenancies Regulation).

Rental Market Report: a report published by Canada Mortgage and Housing Corporation that outlines the vacancy rates for Manitoba.

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.

Vacancy Rate: The average private apartment vacancy rate for all bedroom types, for Winnipeg CMA (census metropolitan area), Brandon CA (census area), Portage la Prairie CA (census area), City of Steinbach, Thompson CA (census area), and for rural Manitoba, as set out in the most recent fall issue of the Rental Market Report.

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.

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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:

  • 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

  • once all the conditions for sale are finalized. For example: The purchaser has received their financing.

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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 based on the vacancy rate. If the vacancy rate, as set out by the fall issue of the Rental Market Report, is less than 3%, the tenant must get at least three months’ notice.

  • the tenantis on a fixed-term tenancy agreement, the mortgagee mustgivenoticethatthey won’trenew theagreementat 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 $500.00.

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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.

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.

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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.



Procedure

Overview

Either a mortgagee or tenant can ask the Branch for information on how to end a tenancy when there is a foreclosure. This policy is included as information for mortgagees, tenants and officers. If a mortgagee and tenant aren’t able to solve a problem with ending a tenancy, they can ask the Branch for help.


Steps ▼

1.The officer encourages the mortgagee and the tenant to share information, and to discuss the problem to try to come to an agreement.

2.When a tenant or mortgagee asks the Branch for help with a problem with a notice of termination, an appropriate officer follows the procedures for:

    • mediation
    • orders of possession
    • hearings


Forms & Form Letters

Notice of Termination by Landlord (For landlord's own use)
..........................................................Form 11A/Residential Tenancies Regulation


X-Referencing

For information on compensation for moving expenses, see this section.
For information on mediation, see Section 1.
Orders of Possession are dealt with in Section 8.
Hearings are covered in Section 11.


Policy Developed

March, 2004


Last Revision


June, 2015

Other Resources

None


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