Real Estate Talk:
Income property / 9

How to cancel a lease before the expiration date by following a specific protocol

By Joseph Marovitch

October 12, 2022

Some situations permit either the landlord or the tenant to break the lease before the expiration date, following specific protocol, as set by the Tribunal administratif du logement.

For landlords to break the lease, it is a little more stringent. A landlord can break the lease if the landlord or an immediate family member intends to live in the unit. To evict the tenant so the landlord’s family can inhabit the unit, the landlord must provide a written notice to the tenant six months before the expiration date of the lease using a Tribunal form called the Notice of repossession.

In the form, the landlord states the following:

1. The date of repossession
2. Name of the family member repossessing the unit
3. Tenant’s signature of acceptance or refusal
4. If the tenant refuses to leave, the landlord will then open a file with the Tribunal administratif du logement, who will examine the situation and render a judgment.

In the event the tenant signs and accepts the eviction notice and finds out that the landlord rented to a not immediate family member or sold the property instead, the previous tenant has the right to legal recourse, which can end up in repatriation or re-occupying the unit.

Some situations permit either the landlord or the tenant to break the lease before the expiration date, following specific protocol, as set by the Tribunal administratif du logement.

In the event the tenant wishes to break the lease before the expiration date, the tenant would have three options:

1. Sublet – meaning the primary tenant would rent to another tenant but remains responsible for the lease. The landlord must approve the tenant but cannot unreasonably withhold their consent.
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2. Arrange a deal with the landlord to pay a penalty of two or three months’ rent and cancel the lease in writing.
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3. Reassign the lease – The tenant has the absolute right to either sublet or reassign the lease under certain conditions. To reassign the lease, the rent must be the same or more than the current rent. The landlord must approve the tenant’s credit and references; however, the landlord cannot unreasonably withhold consent. Once the lease is reassigned, the current tenant is released in whole from the lease obligation.

For further information, you can refer to rdl.gouv.qc.ca/en or contact the Tribunal administratif du logement at 514 873-2245 or 1-800-683-2245

The information I provide in these articles is a summary. Should you have questions or comments, please refer to the comments section at the bottom of the page or look me up on LinkedIn. As well, to view past articles, click here.

Next article: Income property /10 – The Tribunal administratif du logement – Who they are and what they do

State of the market

CPI 8.3% – TD 5-year fixed closed rate 5.6%

Interest rates are rising, but apparently not enough to curb the inflation rate, which just recently spiked. This means carrying costs such as oil, electricity, insurance, and taxes, along with everything else we need to live, has increased in cost. This also means we must look forward to further interest rate hikes to combat inflation.

‘The best option for buyers is to purchase homes with cash, or as much cash as can be put down, along with a shorter-term mortgage of two or three years…’

With the current economy, we are looking at less demand for single homes even though home prices are falling due to rising costs and interest rates. Rent and rental demand are increasing, which is another problem as demand is so high and supply is not.

The best option for buyers is to purchase homes with cash, or as much cash as can be put down, along with a shorter-term mortgage of two or three years in hope that CPI will eventually decrease followed by interest rates over the next few years.

The best option for sellers is to either hold on to their property as values will rise again or sell at market to alleviate expenses.

Of course, there are those of us who have to buy or sell, and we manage to navigate the ups and downs.

Have a great week!

Let’s not forget that people with cancer are vulnerable too!

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Other articles by Joseph Marovitch