Real Estate Talk: Income property

HOW TO CANCEL A LEASE BEFORE THE EXPIRATION DATE BY FOLLOWING A SPECIFIC PROTOCOL

By Joseph Marovitch

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 and can withhold their consent for any reason they choose. .
2. Arrange a deal with the landlord to pay a penalty of two or three months’ rent and cancel the lease in writing. .
3. Reassign the lease – The tenant has the right to 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 can withhold consent for any reason. 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

The inauguration of Donald Trump took place on Monday, January 20. On the day of the new president’s inauguration, Trump signed over 75 executive orders.

Executive orders are placed into law and remain in force until cancelled. They can also be revoked or revised by the sitting president. These orders are related to prior laws passed by Congress. The president has the power to invoke these laws without conferring with Congress if they relate to prior laws.

The inauguration of Donald Trump took place on Monday, January 20. On the day of the new president’s inauguration, Trump signed over 75 executive orders.

The executive orders passed that can affect the Canadian economy and real estate market are:

• Opting out of the World Health Organization (WHO)
• Opting out of the Paris Climate Accord
• Possibly opting out of the North Atlantic Treaty Organization

There are more but these stick out first:

• Opting out of the WHO means the U.S. will not be properly informed of viruses and other health threats to the nation. Health issue information will be opinions dispersed by actual conspiracy theorists. This means the next pandemic will cause worldwide harm. .
• Opting out of the Paris Climate Agreement means there will be no restrictions on carbon emissions, fracking, oil drilling and more, thereby causing harm to the environment in the form of more intense storms, hotter summers and other issues that will affect the health and safety of populations. .
• NATO members are required to come to the aid of NATO country members who are in distress due to environmental disasters or war. If the U.S. administration breaks ties with both allies and enemies and leaves NATO, there will be no one to come to the aid of the U.S. should war break out.

All these issues, aside from causing physical harm will also hurt our economies by slowing the supply chain of goods and services, increasing inflation, and increasing interest rates. All the gains Canada has derived over the last year will reverse.

Oh yes, I almost forgot. Trump intends to sign an executive order increasing tariffs on Canadian imports by 25% on February 1. That should get the ball rolling nicely for Trump but not the U.S., Canada or Mexico.

Have a great week!

Other articles by Joseph Marovitch