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A B.C. landlord just lost $41,380 over a family-use eviction — Ontario tenants now have a similar weapon

A B.C. landlord has been ordered to pay $41,380 after failing to establish that he followed through on a family-use eviction. Now, Ontario tenants have a new protection that could make it easier to challenge similar evictions.

The case, Aslam v. Morneau, involved tenants who had lived in their rental property since July 2012. Landlord Masood Aslam ended their tenancy under B.C.’s rules allowing a landlord to reclaim a property for their own use or the use of a close family member.

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After the tenants left, Aslam’s children moved into the lower suite of the property. But he couldn’t establish that they occupied the upper suite as required by the stated purpose of the eviction. The Residential Tenancy Branch awarded the former tenants $41,380, equal to 12 months of rent, plus a $100 filing fee.

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The B.C. Supreme Court upheld the decision in August.

Ontario tenants now have a new way to challenge an own-use eviction

Ontario changed its rules around landlord-use evictions on Sept. 21, adding a specific 60-day requirement for N12 notices.

An N12 notice is used when a landlord, a purchaser or certain family members require a rental unit for their own residential use. Under the new rules, a landlord or other specified person must normally move into the unit within 60 days of the date specified in the N12 notice.

If that doesn’t happen, a former tenant can file a T5 application alleging bad faith. The N12 is then presumed to have been given in bad faith.

The presumption isn’t automatic proof that the landlord acted improperly. The landlord has an opportunity at the T5 hearing to rebut it and show that the notice was given in good faith.

The rule also applies where the tenant moves out after the termination date: in that situation, the 60-day period runs from when the tenant actually vacates the unit.

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What the two provinces’ rules have in common

The B.C. case and Ontario’s new rule deal with the same basic concern: a landlord shouldn’t be able to remove a tenant by claiming that the property is needed for personal or family use and then use the property for something else. But the provinces address that concern differently.

In B.C., the Aslam case demonstrates the potential consequences after the fact. The landlord was required to compensate the former tenants with 12 months’ rent after the RTB found that he had not established that the stated family-use purpose had been fulfilled.

Ontario’s new rule gives tenants a more specific evidentiary advantage. Once the 60-day period has passed without the named person moving into the unit, a tenant who files a T5 can rely on the statutory presumption of bad faith. The landlord then has the opportunity to rebut that presumption.

Money.ca reached out to the Tenant Resource & Advisory Centre (TRAC), a B.C. tenant advocacy organization, for comment on the case and how B.C.’s protections compare with Ontario’s new rules, but did not hear back before publication.

What tenants should know about an N12 eviction

For tenants facing an own-use eviction, keeping records can be important if they later believe the stated reason wasn’t genuine.

That can include keeping a copy of the N12 notice, communications with the landlord and any other information that may help establish what happened to the property after the tenant moved out.

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In Ontario, a tenant who believes an N12 was given in bad faith can file a T5 application with the Landlord and Tenant Board. Under the new rules, the 60-day occupancy provision can create a presumption of bad faith in those proceedings. The landlord can still present evidence to establish that the N12 was given in good faith.

The Ontario changes also mean tenants should pay attention to when the person named in the N12 actually moves into the unit, rather than assuming the landlord’s stated intention ends the matter once the tenancy has been terminated.

For renters, the broader lesson from both provinces is that an own-use eviction comes with obligations for landlords. If the stated purpose isn’t carried out, tenants may have avenues to challenge the eviction or seek compensation after they have left.

For landlords, the rules underscore the importance of making sure an own-use eviction is based on a genuine plan and that the requirements are followed after the tenant moves out.

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Steven Brennan Contributor

Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and U.S. brands.

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