Leases - Revision history

Drew Jackson at 19:25, 12 October 2018

2018-10-12T19:25:34Z

← Older revision		Revision as of 19:25, 12 October 2018
Line 4:		Line 4:

	== Client problems==		== Client problems==
	* ~~Client~~ wants to know their rights regarding a leased car for which the dealer now wants payments, even though the car has been returned to the dealer.		*Client wants to know their rights regarding a leased car for which the dealer now wants payments, even though the car has been returned to the dealer.
	* Client cannot make further payments on a car lease and wants to know their rights if the car is repossessed.		*Client cannot make further payments on a car lease and wants to know their rights if the car is repossessed.

	== Summary of the law==		== Summary of the law==

Drew Jackson: /* Summary of the law */

2018-10-12T19:10:14Z

Summary of the law

← Older revision		Revision as of 19:10, 12 October 2018
Line 30:		Line 30:
	Of significance are the consumer goods remedies in Part 5 of the ''Personal Property Security Act'', such as “seize or sue” and the “two-thirds rule”. These provisions apply to leases of consumer goods with a term of more than one year if the lease secures payment or performance of an obligation. Such leases are commonly called “'''security leases'''”.		Of significance are the consumer goods remedies in Part 5 of the ''Personal Property Security Act'', such as “seize or sue” and the “two-thirds rule”. These provisions apply to leases of consumer goods with a term of more than one year if the lease secures payment or performance of an obligation. Such leases are commonly called “'''security leases'''”.

	=== ~~True~~ leases===		=== Security leases versus true leases===

	Security leases are treated differently under the law than “'''true leases'''”. True leases are strictly rental agreements and do not secure payment or performance of an obligation, even when they have a term of more than a year. Significantly, Part 5 of the ''Personal Property Security Act'' does not apply to true leases.		Security leases are treated differently under the law than “'''true leases'''”. True leases are strictly rental agreements and do not secure payment or performance of an obligation, even when they have a term of more than a year. Significantly, Part 5 of the ''Personal Property Security Act'' does not apply to true leases.

Drew Jackson: /* Summary of the law */

2018-10-12T19:08:15Z

Summary of the law

← Older revision		Revision as of 19:08, 12 October 2018
Line 13:		Line 13:
	Leases are usually for a fixed period of time, after which the property is returned. Often, leases may be extended or there may be an option to buy the goods outright. Alternatively, goods can be rented on a monthly basis but for an indefinite period of time.		Leases are usually for a fixed period of time, after which the property is returned. Often, leases may be extended or there may be an option to buy the goods outright. Alternatively, goods can be rented on a monthly basis but for an indefinite period of time.

	Leases are common in transactions involving housing, cars, and furniture. This section deals generally with such leasing rights. Leasing agreements, particularly car leases, can be complicated documents. Some of the more important provisions include responsibility for maintaining the vehicle and the condition of the vehicle upon its return.		Leases are common in transactions involving housing, cars and furniture. This section deals generally with such leasing rights. Leasing agreements, particularly car leases, can be complicated documents. Some of the more important provisions include responsibility for maintaining the vehicle and the condition of the vehicle upon its return.

	A particularly important aspect of car leases is the consumer’s financial responsibility when the contract is terminated. A lawyer should generally be consulted on car leases. This section contains only a brief overview of the law.		A particularly important aspect of car leases is the consumer’s financial responsibility when the contract is terminated. A lawyer should generally be consulted on car leases. This section contains only a brief overview of the law.

Drew Jackson: /* True leases */

2018-10-12T19:07:34Z

True leases

← Older revision		Revision as of 19:07, 12 October 2018
Line 32:		Line 32:
	=== True leases===		=== True leases===

	~~Note that Part 5 of the ''Personal Property~~ Security ~~Act'' does not apply to what~~ are ~~commonly termed~~ “'''true leases'''”~~, which~~ are strictly rental agreements and do not secure payment or performance of an obligation, even when they have a term of more than a year.		Security leases are treated differently under the law than “'''true leases'''”. True leases are strictly rental agreements and do not secure payment or performance of an obligation, even when they have a term of more than a year. Significantly, Part 5 of the ''Personal Property Security Act'' does not apply to true leases.

	It is not always easy to determine whether a client has a security lease or a true lease. Some of the indications of “security leases” were noted in the leading case of [http://canlii.ca/t/1t3s2 ''Accent Leasing & Sales Ltd. v. Babic and Bryant'']:		It is not always easy to determine whether a client has a security lease or a true lease. Some of the indications of “security leases” were noted in the leading case of [http://canlii.ca/t/1t3s2 ''Accent Leasing & Sales Ltd. v. Babic and Bryant'']:

Drew Jackson: /* Lease rights */

2018-10-12T19:05:32Z

Lease rights

← Older revision		Revision as of 19:05, 12 October 2018
Line 28:		Line 28:
	The [http://canlii.ca/t/8495 ''Personal Property Security Act''] (see the section on [[Security Agreements]]) applies to most consumer leases. It clearly applies to all leases in which the consumer has the option of buying the property. The ''Personal Property Security Act'' also applies to most leases that do not have such a purchase option if the lease fits within the extended definition of “lease for a term of more than one year” (see the definitions in section 1 of the Act). A lease for a term of more than one year includes renewable shorter-term leases as well as leases with an indefinite term.		The [http://canlii.ca/t/8495 ''Personal Property Security Act''] (see the section on [[Security Agreements]]) applies to most consumer leases. It clearly applies to all leases in which the consumer has the option of buying the property. The ''Personal Property Security Act'' also applies to most leases that do not have such a purchase option if the lease fits within the extended definition of “lease for a term of more than one year” (see the definitions in section 1 of the Act). A lease for a term of more than one year includes renewable shorter-term leases as well as leases with an indefinite term.

	Of significance are the consumer goods remedies in Part 5 of the ''Personal Property Security Act'', such as “seize or sue” and the “two-thirds rule”. These provisions apply to leases of consumer goods with a term of more than one year if the lease secures payment or performance of an obligation. Such leases are commonly called “'''security leases'''”. Note that Part 5 does not apply to what are commonly termed “'''true leases'''”, which are strictly rental agreements and do not secure payment or performance of an obligation, even when they have a term of more than a year.		Of significance are the consumer goods remedies in Part 5 of the ''Personal Property Security Act'', such as “seize or sue” and the “two-thirds rule”. These provisions apply to leases of consumer goods with a term of more than one year if the lease secures payment or performance of an obligation. Such leases are commonly called “'''security leases'''”.

			=== True leases===

			Note that Part 5 of the ''Personal Property Security Act'' does not apply to what are commonly termed “'''true leases'''”, which are strictly rental agreements and do not secure payment or performance of an obligation, even when they have a term of more than a year.

	It is not always easy to determine whether a client has a security lease or a true lease. Some of the indications of “security leases” were noted in the leading case of [http://canlii.ca/t/1t3s2 ''Accent Leasing & Sales Ltd. v. Babic and Bryant'']:		It is not always easy to determine whether a client has a security lease or a true lease. Some of the indications of “security leases” were noted in the leading case of [http://canlii.ca/t/1t3s2 ''Accent Leasing & Sales Ltd. v. Babic and Bryant'']:

Drew Jackson at 14:27, 9 October 2018

2018-10-09T14:27:16Z

← Older revision		Revision as of 14:27, 9 October 2018
Line 6:		Line 6:
	* Client wants to know their rights regarding a leased car for which the dealer now wants payments, even though the car has been returned to the dealer.		* Client wants to know their rights regarding a leased car for which the dealer now wants payments, even though the car has been returned to the dealer.
	* Client cannot make further payments on a car lease and wants to know their rights if the car is repossessed.		* Client cannot make further payments on a car lease and wants to know their rights if the car is repossessed.

	== Summary of the law==		== Summary of the law==
	[[File:Consumer_Law_and_Debt_-_Leases.jpg\|thumb\|275px\|right\| link=\| <span style="font-size:50%;">Image via www.istockphoto.com</span>]]		[[File:Consumer_Law_and_Debt_-_Leases.jpg\|thumb\|275px\|right\| link=\| <span style="font-size:50%;">Image via www.istockphoto.com</span>]]

Elena Renderos at 03:34, 5 October 2018

2018-10-05T03:34:34Z

← Older revision		Revision as of 03:34, 5 October 2018
Line 43:		Line 43:
	== Related topics and materials==		== Related topics and materials==
	See the other sections on making a purchase:		See the other sections on making a purchase:
	* Sale of Goods ~~Law~~		* [[Sale of Goods Law]]
	* Deposits in Consumer ~~Transactions~~		* [[Deposits in Consumer Transactions]]
	* Misleading ~~Advertising~~		* [[Misleading Advertising]]
	* Unfair or Deceptive ~~Practices~~		* [[Unfair or Deceptive Practices]]
	* Unsolicited Goods and ~~Services~~		* [[Unsolicited Goods and Services]]

	See related topics:		See related topics:
	* Opting Out and Cooling-off ~~Periods~~		* [[Opting Out and Cooling-off Periods]]
	* Security ~~Agreements~~		* [[Security Agreements]]

	See also “[http://tenants.bc.ca/breaking-a-lease/ Breaking a Lease]” from the Tenant Resource Advisory Centre and People’s Law School’s page on [https://www.peopleslawschool.ca/everyday-legal-problems/cars-getting-around/buying-or-repairing-car/leasing-car leasing a car].		See also “[http://tenants.bc.ca/breaking-a-lease/ Breaking a Lease]” from the Tenant Resource Advisory Centre and People’s Law School’s page on [https://www.peopleslawschool.ca/everyday-legal-problems/cars-getting-around/buying-or-repairing-car/leasing-car leasing a car].

Elena Renderos at 05:15, 20 September 2018

2018-09-20T05:15:18Z

← Older revision		Revision as of 05:15, 20 September 2018
Line 8:		Line 8:

	== Summary of the law==		== Summary of the law==
			[[File:Consumer_Law_and_Debt_-_Leases.jpg\|thumb\|275px\|right\| link=\| <span style="font-size:50%;">Image via www.istockphoto.com</span>]]
	Leasing agreements allow someone to use property temporarily. This arrangement is distinguished from sales agreements, where the intention is usually to allow the buyer to take permanent ownership of the property, or at least give the buyer a right to obtain ownership.		Leasing agreements allow someone to use property temporarily. This arrangement is distinguished from sales agreements, where the intention is usually to allow the buyer to take permanent ownership of the property, or at least give the buyer a right to obtain ownership.

Elena Renderos at 00:33, 17 September 2018

2018-09-17T00:33:29Z

← Older revision		Revision as of 00:33, 17 September 2018
Line 53:		Line 53:

	See also “[http://tenants.bc.ca/breaking-a-lease/ Breaking a Lease]” from the Tenant Resource Advisory Centre and People’s Law School’s page on [https://www.peopleslawschool.ca/everyday-legal-problems/cars-getting-around/buying-or-repairing-car/leasing-car leasing a car].		See also “[http://tenants.bc.ca/breaking-a-lease/ Breaking a Lease]” from the Tenant Resource Advisory Centre and People’s Law School’s page on [https://www.peopleslawschool.ca/everyday-legal-problems/cars-getting-around/buying-or-repairing-car/leasing-car leasing a car].


	{{Consumer and Debt Law Navbox\|type = consumer}}		{{Consumer and Debt Law Navbox\|type = consumer}}

Elena Renderos at 21:43, 16 September 2018

2018-09-16T21:43:29Z

← Older revision		Revision as of 21:43, 16 September 2018
Line 19:		Line 19:
	Several statutes touch upon the rights of consumers concerning leasing agreements.		Several statutes touch upon the rights of consumers concerning leasing agreements.

	Under the [http://canlii.ca/t/84c2 ''Sale of Goods Act''] (see the section on Sale of Goods Law), the protections for consumer purchases also apply to consumer leases. Under [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-410/latest/rsbc-1996-c-410.html#sec18_smooth section 18], for example, the implied condition as to the durability of goods applies to both sales and leases; under [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-410/latest/rsbc-1996-c-410.html#sec20_smooth section 20], the protection against waiver of rights applies to both sales and leases.		Under the [http://canlii.ca/t/84c2 ''Sale of Goods Act''] (see the section on [[Sale of Goods Law]]), the protections for consumer purchases also apply to consumer leases. Under [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-410/latest/rsbc-1996-c-410.html#sec18_smooth section 18], for example, the implied condition as to the durability of goods applies to both sales and leases; under [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-410/latest/rsbc-1996-c-410.html#sec20_smooth section 20], the protection against waiver of rights applies to both sales and leases.

	The [https://www.canlii.org/en/bc/laws/regu/bc-reg-447-78/latest/bc-reg-447-78.html#sec30_smooth Motor Dealer Act Regulation] requires a motor dealer to disclose certain information in writing to a consumer before the consumer enters into an agreement to lease a motor vehicle. As well, [https://www.canlii.org/en/bc/laws/regu/bc-reg-447-78/latest/bc-reg-447-78.html#sec31_smooth section 31] of the Regulation grants the consumer a one-day cooling-off period during which the vehicle is to remain with the dealer and the consumer can cancel the lease; see the section on Opting Out and Cooling-off Periods. (This cooling-off period can be waived in writing.)		The [https://www.canlii.org/en/bc/laws/regu/bc-reg-447-78/latest/bc-reg-447-78.html#sec30_smooth Motor Dealer Act Regulation] requires a motor dealer to disclose certain information in writing to a consumer before the consumer enters into an agreement to lease a motor vehicle. As well, [https://www.canlii.org/en/bc/laws/regu/bc-reg-447-78/latest/bc-reg-447-78.html#sec31_smooth section 31] of the Regulation grants the consumer a one-day cooling-off period during which the vehicle is to remain with the dealer and the consumer can cancel the lease; see the section on [[Opting Out and Cooling-off Periods]]. (This cooling-off period can be waived in writing.)

	The trade practices requirements of the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act''] apply to consumer leases (see the section on Unfair or Deceptive Practices).		The trade practices requirements of the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act''] apply to consumer leases (see the section on [[Unfair or Deceptive Practices]]).

	The [http://canlii.ca/t/8495 ''Personal Property Security Act''] (see the section on Security Agreements) applies to most consumer leases. It clearly applies to all leases in which the consumer has the option of buying the property. The ''Personal Property Security Act'' also applies to most leases that do not have such a purchase option if the lease fits within the extended definition of “lease for a term of more than one year” (see the definitions in section 1 of the Act). A lease for a term of more than one year includes renewable shorter-term leases as well as leases with an indefinite term.		The [http://canlii.ca/t/8495 ''Personal Property Security Act''] (see the section on [[Security Agreements]]) applies to most consumer leases. It clearly applies to all leases in which the consumer has the option of buying the property. The ''Personal Property Security Act'' also applies to most leases that do not have such a purchase option if the lease fits within the extended definition of “lease for a term of more than one year” (see the definitions in section 1 of the Act). A lease for a term of more than one year includes renewable shorter-term leases as well as leases with an indefinite term.

	Of significance are the consumer goods remedies in Part 5 of the ''Personal Property Security Act'', such as “seize or sue” and the “two-thirds rule”. These provisions apply to leases of consumer goods with a term of more than one year if the lease secures payment or performance of an obligation. Such leases are commonly called “'''security leases'''”. Note that Part 5 does not apply to what are commonly termed “'''true leases'''”, which are strictly rental agreements and do not secure payment or performance of an obligation, even when they have a term of more than a year.		Of significance are the consumer goods remedies in Part 5 of the ''Personal Property Security Act'', such as “seize or sue” and the “two-thirds rule”. These provisions apply to leases of consumer goods with a term of more than one year if the lease secures payment or performance of an obligation. Such leases are commonly called “'''security leases'''”. Note that Part 5 does not apply to what are commonly termed “'''true leases'''”, which are strictly rental agreements and do not secure payment or performance of an obligation, even when they have a term of more than a year.