Act
Proposed Amendments to Require a Standard Form of Rent Repayment Agreement when the Landlord and Tenant Board (LTB) makes an Order under Section 206 of the Residential Tenancies Act (RTA)
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Residential Tenancies Act, 2006
Summary of Decision:
Bill 97, Helping Homebuyers, Protecting Tenants Act, 2023 was passed by the Legislature and received Royal Assent on June 8, 2023.
Subsection 206 (1) is amended to require that a payment agreement reached between a landlord and tenant to resolve an application to the Landlord and Tenant Board for eviction due to rent arrears must be in the form approved by the Board.
The proposal generated a small number of submissions, where most of the feedback related to matters outside of the proposed change.
Some responses expressed support for the proposal, noting the proposed mandatory form provides a plain language explanation of what happens when a payment agreement is breached, as well as additional information about related rental rules and tenant rights, including that the tenant may wish to seek legal advice prior to signing.
Subsection 206 (1) is amended to require that a payment agreement reached between a landlord and tenant to resolve an application to the Landlord and Tenant Board for eviction due to rent arrears must be in the form approved by the Board.
The proposal generated a small number of submissions, where most of the feedback related to matters outside of the proposed change.
Some responses expressed support for the proposal, noting the proposed mandatory form provides a plain language explanation of what happens when a payment agreement is breached, as well as additional information about related rental rules and tenant rights, including that the tenant may wish to seek legal advice prior to signing.
Analysis of Regulatory Impact:
It is anticipated that requiring the use of a standard form of repayment agreement will result in reduced burden for landlords as they will not need to consider drafting their own agreement or retain legal counsel to draft such an agreement.
Further Information:
Residential Tenancies Act, 2006
https://www.ontario.ca/laws/statute/06r17
Helping Homebuyers, Protecting Tenants Act, 2023
Proposal Number:
23-MMAH010
Posting Date:
April 6, 2023
Summary of Proposal:
Context:
A repayment agreement under s. 206 is used when a landlord has applied to the LTB to evict a tenant for rent arrears, and the landlord and tenant agree to a repayment plan without immediately resorting to an eviction. If the parties reach such an agreement, the agreement is given effect by an LTB order setting out the terms of payment.
Bill 184, Protecting Tenants and Strengthening Community Housing Act, passed in 2020, made changes to the Residential Tenancies Act, 2006 (RTA) to encourage landlords to enter into repayment agreements that maintain tenancies as opposed to pursue evictions for non-payment of rent. The changes allow a landlord, if a repayment agreement is breached, to seek an ex parte eviction order from the LTB.
As well, when there is a hearing of an eviction application, the LTB must consider if the landlord attempted to enter into a repayment agreement with their tenant before issuing an eviction order for rent arrears.
Currently, there is no requirement that the repayment agreement be in a certain form / format.
Proposal:
The government is proposing to amend the RTA to make the use of a form approved by the LTB mandatory for repayment agreements made under S.206 of the Act.
The LTB has developed and already made publicly available on its website a repayment agreement form, which was developed in consultation with tenant advocacy organizations. Its use is currently not mandatory. This form provides a plain language explanation of what happens when the agreement is breached, additional information about related rental rules and tenant rights, including that the tenant may wish to seek legal advice prior to signing, and that if an eviction order is made without a hearing, the tenant can submit a motion to set aside the order and request a hearing.
A repayment agreement under s. 206 is used when a landlord has applied to the LTB to evict a tenant for rent arrears, and the landlord and tenant agree to a repayment plan without immediately resorting to an eviction. If the parties reach such an agreement, the agreement is given effect by an LTB order setting out the terms of payment.
Bill 184, Protecting Tenants and Strengthening Community Housing Act, passed in 2020, made changes to the Residential Tenancies Act, 2006 (RTA) to encourage landlords to enter into repayment agreements that maintain tenancies as opposed to pursue evictions for non-payment of rent. The changes allow a landlord, if a repayment agreement is breached, to seek an ex parte eviction order from the LTB.
As well, when there is a hearing of an eviction application, the LTB must consider if the landlord attempted to enter into a repayment agreement with their tenant before issuing an eviction order for rent arrears.
Currently, there is no requirement that the repayment agreement be in a certain form / format.
Proposal:
The government is proposing to amend the RTA to make the use of a form approved by the LTB mandatory for repayment agreements made under S.206 of the Act.
The LTB has developed and already made publicly available on its website a repayment agreement form, which was developed in consultation with tenant advocacy organizations. Its use is currently not mandatory. This form provides a plain language explanation of what happens when the agreement is breached, additional information about related rental rules and tenant rights, including that the tenant may wish to seek legal advice prior to signing, and that if an eviction order is made without a hearing, the tenant can submit a motion to set aside the order and request a hearing.
Contact Address:
residential.tenancies@ontario.ca
Royal Assent Date:
June 8, 2023
Decision:
Approved