Tenancies and the Common Law (19:XIII): Difference between revisions

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Latest revision as of 08:56, 30 August 2024

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on August 15, 2024.

LSLAP Manual
This page is from the Law Students' Legal Advice Program Manual. See the full contents.
LSLAP Manual
Introduction
Chapters
1. Criminal Law · I. Introduction · II. Governing Legislation and Resources · III. Etiquette · IV. Criminal Charges · V. Substantive Law · VI. Resolving Prior to Trial · VII. Pleading Not Guilty/Trial · VIII. Other Issues · IX. Charter of Rights and Freedoms · X. LSLAP Policies · XI. Information for LSLAP Students · XII. Etiquette for Law Students · XIII. Practice Recommendations · Appendix A: Initial Sentencing Position · Appendix B: Sample Information · Appendix C: Diversion Application · Appendix D: Sentencing Hearing · Appendix E: Trial Books · Appendix F: Glossary
2. Youth Justice · I. Introduction · II. Governing Legislation and Resources · III. Youth Criminal Justice Act · IV. Youth Justice Act · Appendix A: Glossary
3. Family Law · I. Introduction · II. Governing Legislation and Resources · III. Marriage · IV. Divorce · V. Uncontested Divorce · VI. Simple Divorce Procedure · VII. Alternatives to Divorce · VIII. Family Violence · IX. Assets · X. Spousal and Child Support · XI. Parenting Orders/Guardianship/Contact · XII. Children and the Law · XIII. Adoption · XIV. Name Changes · XV. Court Procedures · Appendix A: Glossary
4. Victims · I. Introduction · II. Governing Legislation · III. Crime Victim Assistance Program · IV. Avenues to Address Crime · V. Victims of Sexual Assault · VI. Victims of Relationship Violence · VII. Abuse of the Seniors & Disabled · VIII. Victims of Human Trafficking · IX. Missing Persons and Abductions · X. TIP & Restorative Justice · XI. Resources for Indigenous Victims · XII. Referrals and Follow-up
5. Public Complaints · I. Introduction · II. Governing Legislation & Resources · III. Review of Administrative Decisions · IV. Privacy or Access to Information · V. Police Conduct Complaints · VI. Security Guard Conduct Complaints · VII. The Right to Vote · VIII. Complaints & Appeals UBC · IX. Complaints & Appeals SFU · X. Complaints against Other Universities · XI. Complaints against Doctors · XII. Complaints against Lawyers · XIII. Complaints against other Professionals · XIV. LSLAP Program Information · Appendix A: Glossary · Appendix B: Sample Notice Letter
6. Human Rights · I. Introduction · II. Governing Legislation and Resources · III. BC Human Rights Code · IV. Canadian Human Rights Act · V. BC Civil Rights Protection Act · VI. Rights of the Child · VII. LSLAP's Role · VIII. Indigenous Complainants · IX. Online Mediations & Hearings
7. Workers' Compensation · I. Introduction · II. Legislation, Policy & Guidelines · III. Introduction to Worker Compensation Claims · IV. LSLAP's Role at Initial Decision · V. Limitation Periods & Timing of Decisions · VI. Making a Claim · VII. The Claim Acceptance Process · VIII. Worker Status · IX. Disability and Causation · X. Time Limits & Procedures · XI. Claim Benefits · XII. Appeals · XIII. Health and Safety Regulations · XIV. Assessments of Employers · XV. WCB Fair Practices Office · Appendix A: Abbreviations · Appendix B: List of Cases · Appendix C: Referrals · Appendix D: Resources · Appendix E: Small Claims Flow Chart · Appendix F: Checklist for Interviews · Appendix G: Checklist for Appeals · Appendix H: Sample Authorization Form
8. Employment Insurance · I. Introduction · II. Governing Legislation and Resources · III. Qualifying for EI · IV. Types of Benefits · V. Benefit Period · VI. Quantifying Benefits · VII. Benefit Entitlement · VIII. Penalties, Violations, and Offences · IX. Keeping Out of Trouble · X. Timing for Reporting · XI. Overpayment and Collections · XII. Reconsideration · XIII. Social Security Tribunal · XIV. Appeals · XV. Judicial Review · XVI. LSLAP's Use of This Chapter · Appendix A: Initial Application Checklist
9. Employment Law · I. Introduction · II. Governing Legislation and Resources · III. Checklist · IV. Preliminary Matters · V. Employment Issues · VI. Remedies · VII. Strategies and Tips · Appendix A: Glossary
10. Creditors and Debtors · I. Introduction · II. Governing Legislation and Resources · III. Creditors' Remedies · IV. Debtors' Options · V. Dealing with Debt · Appendix A: Relevant Forms · Appendix B: Examination Checklist
11. Consumer Protection · I. Introduction · II. Governing Legislation and Resources · III. Contracts for Sale of Goods · IV. Consumer Protection · V. Direct Sales · VI. Conditional Sales Contracts & Security Agreements · VII. Motor Dealer Act · VIII. Miscellaneous · IX. Forum of Redress · X. Checklist for Consumer Transactions
12. Auto Insurance (ICBC) I. Introduction · II. Governing Legislation & Resources · III. Enhanced Care System · IV. Optional Insurance · V. Seeking Legal Counsel · VI. Disputes with ICBC · VII. When You Can Still Sue · VIII. ICBC's Previous Autoplan Insurance System · IX. Limitation on Experts · X. Compulsory Coverage
13. Motor Vehicle Law · I. Introduction · II. Governing Legislation & Resources · III. At the Roadside · IV. Duties after a Collision · V. Violation Tickets · VI. Provincial Driving Offences · VII. Vehicle Impoundment · VIII. Superintendent of Motor Vehicle Prohibitions · IX. Alcohol & Drug Driving Offences · X. Federal Driving Offences · XI. Provincial Driving While Prohibited Offences · XII. ICBC Breaches · XIII. Bicycles & Motor Assisted Cycles · XIV. LSLAP Program Information · Appendix A: Penalty Points and Fines
14. Mental Health Law · I. Introduction · II. Governing Legislation & Resources · III. Theory and Approach · IV. Legal Rights · V. Patient Admission · VI. Consent to Medical Treatment · VII. Involuntarily Admitted Patients · VIII. Mental Health Act and Youth · IX. Criminal Code · X. Complaints · XI. References · XII. LSLAP Program Information
15. Adult Guardianship · I. Introduction · II. Governing Legislation · III. Mental Capacity · IV. Substitute Decision Making · V. Adult Guardianship · VI. Adult Abuse and Neglect · VII. Sources and Resources · Appendix A: EPOA · Appendix B: Decision Tree on Adult Abuse and Neglect
16. Wills and Estate Administration · I. Introduction · II. Governing Legislation & Resources · III. Making and Executing a Will · IV. Will Mistakes and Alterations · V. Court's Power · VI. Revocation · VII. Wills Variation Claims · VIII. Intestacy · IX. Property · X. Estate Administration · XI. Duties of Personal Representative · XII. Tax: RRSP & RRIF & TFSA · XIII. LSLAP Program Information · Appendix A: Will Instructions Questionnaire · Appendix B: Will Drafting and Execution Checklist · Appendix C: Glossary
17. Citizenship · I. Introduction · II. Governing Legislation & Resources · III. Who is a Canadian Citizen? · IV. Citizenship Advantages & Responsibilities · V. Citizenship Grants · VI. Applying for Citizenship Grant · VII. Loss and Renunciation of Citizenship · VIII. Proof of Citizenship · IX. Search of Citizenship Record · X. Referrals
18. Immigration Law · I. Introduction · II. Governing Legislation & Resources · III. Immigration Players · IV. Categories of Persons under IRPA · V. Applying for Permanent Residency · VI. Identification for PR · VII. Immigration and Refugee Board · VIII. Loss of PR Status · IX. In-Canada Temporary Residence Matters · X. Removal Orders · XI. Appeals · XII. Offences · XIII. Immigration Issues at Sentencing · XIV. Contacts
19. Landlord and Tenant Law · I. Introduction · II. Governing Legislation · III. Residential Tenancy Act & Laws · IV. Tenancy Agreements · V. Moving In & Moving Out · VI. Security Deposits · VII. Repair & Service · VIII. Rent Increase · IX. Tenant's Rights · X. Subletting & Assignment · XI. Termination & Eviction · XII. Dispute Resolution · XIII. Common Law · XIV. Strata & Condos · XV. Assisted Living · XVI. Manufactured Homes · XVII. Guidelines & Resources
20. Small Claims and the CRT · I. Introduction · II. Governing Legislation & Resources · III. Do You Have a Claim? · IV. Choosing the Proper Forum · V. Starting a Claim · VI. Responding to a Claim · VII. Default Order · VIII. How a Claim Proceeds · IX. Pre-Trial Applications · X. Mediation · XI. Settlement Conferences · XII. Trial & Pre-Trial Conferences · XIII. Trial Preparation · XIV. Trials · XV. Costs and Penalties · XVI. Appeals · XVII. Enforcement of a Judgement · XVIII. LSLAP Program Information · Appendix A: Registries · Appendix B: Demand Letter · Appendix C: Notice of Claim · Appendix D: Reply to Claim · Appendix E: Glossary · Appendix F: Limitation Periods · Appendix G: Causes of Action · Appendix H: Court Fees · Appendix I: Tribunal Fees · Appendix J: Settlement Conference · Appendix K: Payment Hearing · Appendix L: Appeal
21. Welfare Law · I. Introduction · II. Governing Legislation & Resources · III. Eligibility · IV. Special Situations · V. Eligibility Factors · VI. Hardship Assistance · VII. Overpayments & Fraud · VIII. Rates & Payment Issues · IX. Additional Allowances & Benefits · X. Health Supplements · XI. Appeals
22. Strata Law · I. Introduction · II. Governing Legislation · III. Strata Concept · IV. Strata Plan · V. Common Property & Assets · VI. Governance · VII. Management · VIII. Finances · IX. Collections · X. Bylaws & Rules · XI. Rentals & Accommodations · XII. Privacy · XIII. Insurance · XIV. Repair & Maintenance · XV. Dispute Resolution · XVI. Recourse to the Courts
23. Referrals · I. General · II. Family Law & Women · III. Residential Tenancy · IV. Human Rights · V. Wills & Estates · VI. Immigration & Refugee · VII. Disability · VIII. Employment · IX. Debt · X. Indigenous · XI. Police Complaints · XII. Chinese Language · XIII. Others
v • d • e

Subject to the RTA, the common law respecting landlord and tenant applies (RTA, s 91).

A. Implied Surrender: Abandonment

At common law, a lease may be ended by “surrender” due to conduct of the parties, consistent only with a “merging” of the tenancy interest back into the landlord’s (owner’s) estate. Surrender occurs, for example, where the tenant abandons the rental unit, and the landlord repossesses and re-rents. Generally, no further rent or compensation for the unexpired portion of the tenancy may be claimed on surrender. However, claims for lost rentals are allowed.

Abandonment is cause for ending a tenancy, but regardless of the wording of the tenant’s notice, or the wording of the acceptance of surrender, or the absence of a notice, abandonment gives rise to the landlord’s duty to mitigate.

B. Frustration

The doctrine of frustration applies to residential tenancy agreements (RTA, s 92) and commercial leases (Commercial Tenancy Act, s 30). If some unforeseen event occurs that prevents the agreement from being performed, it will be considered to have been frustrated and is thereby terminated at the time of the event. Frustration will rarely be found where the event appears to be largely self-induced (and the result of acts or omissions which might themselves constitute a breach of covenant, e.g., a municipal closure order made pursuant to a fire bylaw where the landlord failed to install sprinklers). If the event is totally self-induced, the perpetrator will not be able to establish frustration. Two factors to consider beyond the normal contract law concerns are: 1) the length of the unexpired term at the time of frustration, and 2) the possibility of alternative use of the rental unit. If the lease is one to which the RTA doesn’t apply, by common law the doctrine of frustration would not apply.

C. The Right to Distrain the Tenant’s Personal Goods

Under the RTA, a landlord has no right to distrain (i.e., seize) a residential tenant’s personal goods for default in rental payment, nor may the landlord seize a tenant’s personal goods to satisfy another claim or demand, unless the seizure is made by a person authorized by a court order or an enactment (s 26(3) and (4)). If a landlord seizes goods contrary to s 26(3), the tenant may apply to the court for an order to return the property, and/or for a monetary claim for damages. A landlord may, where personal property has been abandoned by the tenant, remove it from the residential property, and must deal with it in accordance with the RTR, which impose specific obligations on landlords in these circumstances. See Sections 24 and 25 of the RTR for specific obligations of landlords.

D. Duty to Mitigate

Under s 7(2) of the RTA, any time a monetary claim arises between landlord and tenant, both have a duty to mitigate damages (i.e., minimize losses). For example, if a tenant breaks a lease that was for a fixed term of one year, the landlord could sue the tenant for the balance of the rent payments. Nonetheless, the landlord has a duty under s 7(2) to try to minimize their loss by re-renting the rental unit as soon as possible, rather than just suing the tenant for the whole year’s rent. A landlord who makes such a claim must prove that they took reasonable steps to re-rent the unit and was not able to do so. See RTB Policy Guideline 5: Duty to Mitigate Loss.

LSLAP Manual

Introduction

Acknowledgements

Chapters 1-7
Criminal Law · Youth Justice · Family Law · Victims · Public Complaints · Human Rights · Workers Compensation

Chapter One: Criminal Law	I. Introduction · II. Governing Legislation and Resources · III. Etiquette · IV. Criminal Charges · V. Substantive Law · VI. Resolving Prior to Trial · VII. Pleading Not Guilty/Trial · VIII. Other Issues · IX. Charter of Rights and Freedoms · X. LSLAP Policies · XI. Information for LSLAP Students · XII. Etiquette for Law Students · XIII. Practice Recommendations · Appendix A: Initial Sentencing Position · Appendix B: Sample Information · Appendix C: Diversion Application · Appendix D: Sentencing Hearing · Appendix E: Trial Books · Appendix F: Glossary

Chapter Two: Youth Justice	I. Introduction · II. Governing Legislation and Resources · III. Criminal Offences: Youth Criminal Justice Act · IV. Provincial Offences: Youth Justice Act · Appendix A: Glossary

Chapter Three: Family Law	I. Introduction · II. Governing Legislation and Resources · III. Marriage · IV. Divorce · V. Uncontested Divorce · VI. Simple Divorce Procedure · VII. Alternatives to Divorce · VIII. Family Violence · IX. Assets · X. Spousal and Child Support · XI. Parenting Orders/Guardianship/Contact · XII. Children and the Law · XIII. Adoption · XIV. Name Changes · XV. Court Procedures · Appendix A: Glossary

Chapter Four: Victims	I. Introduction · II. Governing Legislation · III. Crime Victim Assistance Program · IV. Avenues to Address Crime · V. Victims of Sexual Assault · VI. Victims of Relationship Violence · VII. Abuse and Neglect of Seniors or Those with Disabilities · VIII. Victims of Human Trafficking · IX. Missing Persons and Abductions · X. Trauma Informed Practice and Restorative Justice · XI. Resources for Indigenous Victims · XII. Referrals and Follow-up

Chapter Five: Public Complaints	I. Introduction · II. Governing Legislation and Resources · III. Review of Administrative Decisions · IV. Privacy or Access to Information · V. Complaints Concerning Police Conduct · VI. Complaints against Security Guards · VII. The Right to Vote · VIII. Complaints and Appeals UBC · IX. Complaints and Appeals SFU · X. Complaints Against Other Colleges and Universities · XI. Complaints against Doctors · XII. Complaints against Lawyers · XIII. Complaints against other Professionals · XIV. LSLAP Program Information · Appendix A: Glossary · Appendix B: Sample Notice Letter

Chapter Six: Human Rights	I. Introduction · II. Governing Legislation and Resources · III. BC Human Rights Code · IV. Canadian Human Rights Act · V. BC Civil Rights Protection Act · VI. Rights of the Child · VII. LSLAP's Role in Human Rights Proceedings · VIII. Alternative Processes for Indigenous Complainants · IX. Online Mediations & Hearings

Chapter Seven: Workers' Compensation	I. Introduction · II. Governing Legislation, Policy & Guidelines · III. Introduction to Compensation Claims for Injured Workers · IV. LSLAP's Role at the Initial Decision Level · V. Limitation Periods and Timing of Decisions · VI. Making a Claim · VII. The Claim Acceptance Process · VIII. Worker Status · IX. Disability and Causation · X. Time Limits and Procedures · XI. Claim Benefits · XII. Appeals · XIII. Health and Safety Regulations · XIV. Assessments of Employers · XV. The WCB Fair Practices Office · Appendix A: Abbreviations · Appendix B: List of Cases · Appendix C: Referrals · Appendix D: Resources · Appendix E: Small Claims Flow Chart · Appendix F: Checklist for Interviews · Appendix G: Checklist for Appeals · Appendix H: Sample Authorization Form

Chapters 8-14
Employment Insurance · Employment Law · Creditors and Debtors · Consumer Protection · Auto Insurance (ICBC) · Motor Vehicle Law · Mental Health Law

Chapter Eight: Employment Insurance	I. Introduction · II. Governing Legislation and Resources · III. Qualifying for EI · IV. Types of Benefits · V. Benefit Period · VI. Quantifying Benefits · VII. Benefit Entitlement · VIII. Penalties, Violations, and Offences · IX. Keeping Out of Trouble · X. Timing for Reporting · XI. Overpayment and Collections · XII. Reconsideration · XIII. Social Security Tribunal · XIV. Appeals · XV. Judicial Review · XVI. LSLAP's Use of This Chapter · Appendix A: Initial Application Checklist

Chapter Nine: Employment Law	I. Introduction · II. Governing Legislation and Resources · III. Checklist · IV. Preliminary Matters · V. Employment Issues · VI. Remedies · VII. Strategies and Tips · Appendix A: Glossary

Chapter Ten: Creditors' Remedies and Debtors' Assistance	I. Introduction · II. Governing Legislation and Resources · III. Creditors' Remedies · IV. Debtors' Options · V. Dealing with Debt · Appendix A: Relevant Forms · Appendix B: Examination Checklist

Chapter Eleven: Consumer Protection	I. Introduction · II. Governing Legislation and Resources · III. Contracts for Sale of Goods · IV. Consumer Protection · V. Direct Sales · VI. Conditional Sales Contracts and Security Agreements · VII. Motor Dealer Act · VIII. Miscellaneous · IX. Forum of Redress · X. Checklist for Consumer Transactions

Chapter Twelve: Auto Insurance (ICBC)	I. Introduction · II. Governing Legislation and Resources · III. ICBC Enhanced Care System (Current Model) · IV. ICBC Enhanced Care System and Optional Insurance · V. Seeking Legal Counsel · VI. Disputes with ICBC · VII. When You Can Still Sue · VIII. ICBC's Autoplan Insurance System (Prior System) · IX. Limitation on Experts · X. Basic Compulsory Autoplan Coverage

Chapter Thirteen: Motor Vehicle Law	I. Introduction · II. Governing Legislation and Resources · III. At the Roadside · IV. Duties after a Collision · V. Violation Tickets · VI. Provincial Driving Offences · VII. Vehicle Impoundment · VIII. Superintendent of Motor Vehicle Prohibitions · IX. Alcohol and Drug Driving Offences · X. Federal Driving Offences · XI. Provincial Offence of Driving While Prohibited · XII. ICBC Breaches · XIII. Bicycles and Motor Assisted Cycles · XIV. LSLAP Program Information · Appendix A: Penalty Points and Fines

Chapter Fourteen: Mental Health Law	I. Introduction · II. Governing Legislation and Resources · III. Theory and Approach · IV. Legal Rights · V. Patient Admission · VI. Consent to Medical Treatment · VII. Involuntarily Admitted Patients · VIII. Mental Health Act and Youth · IX. Criminal Code · X. Complaints · XI. References · XII. LSLAP Program Information

Chapters 15-23
Adult Guardianship and Substitute Decision-Making · Wills and Estates · Citizenship · Immigration · Landlord and Tenant Rights · Small Claims · Welfare Law · Strata Law · Referrals

Chapter Fifteen: Adult Guardianship and Substitute Decision-Making	I. Introduction · II. Governing Legislation · III. Mental Capacity · IV. Substitute Decision Making · V. Adult Guardianship · VI. Adult Abuse and Neglect · VII. Sources and Resources · Appendix A: EPOA · Appendix B: Decision Tree on Adult Abuse and Neglect

Chapter Sixteen: Wills and Estate Administration	I. Introduction · II. Governing Legislation and Resources · III. Making and Executing a Will · IV. Will Mistakes and Alterations · V. Court's Power · VI. Revocation · VII. Wills Variation Claims · VIII. Intestacy · IX. Property · X. Estate Administration · XI. Duties of a Personal Representative · XII. Taxation: RRSP & RRIF & TFSA · XIII. LSLAP Program Information · Appendix A: Will Instructions Questionnaire · Appendix B: Will Drafting and Execution Checklist · Appendix C: Glossary

Chapter Seventeen: Citizenship	I. Introduction · II. Governing Legislation and Resources · III. Who is a Canadian Citizen? · IV. Advantages & Responsibilities of Citizenship · V. Citizenship Grants · VI. Applying for Citizenship Grant · VII. Loss and Renunciation of Citizenship · VIII. Proof of Citizenship · IX. Search of Citizenship Record · X. Referrals

Chapter Eighteen: Immigration Law	I. Introduction · II. Governing Legislation and Resources · III. Immigration Players · IV. Categories of Persons under IRPA · V. Applying for Permanent Residency · VI. Identification for PR · VII. Immigration and Refugee Board · VIII. Loss of PR Status · IX. In-Canada Temporary Residence Matters · X. Removal Orders · XI. Appeals · XII. Offences · XIII. Immigration Issues at Sentencing · XIV. Contacts

Chapter Nineteen: Landlord and Tenant Law	I. Introduction · II. Governing Legislation · III. Residential Tenancy Act & Laws · IV. Tenancy Agreements · V. Moving In & Moving Out · VI. Security Deposits · VII. Repair & Service · VIII. Rent Increase · IX. Tenant's Rights · X. Subletting & Assignment · XI. Termination & Eviction · XII. Dispute Resolution · XIII. Common Law · XIV. Strata & Condos · XV. Assisted Living · XVI. Manufactured Homes · XVII. Guidelines & Resources

Chapter Twenty: Small Claims and the CRT	I. Introduction · II. Governing Legislation and Resources · III. Do You Have a Claim? · IV. Choosing the Proper Forum · V. Starting a Claim · VI. Responding to a Claim · VII. Default Order · VIII. How a Claim Proceeds · IX. Pre-Trial Applications · X. Mediation · XI. Settlement Conferences · XII. Trial/Pre-Trial Conferences · XIII. Trial Preparation · XIV. Trials · XV. Costs and Penalties · XVI. Appeals · XVII. Enforcement of a Judgement · XVIII. LSLAP Program Information · Appendix A: Registries · Appendix B: Demand Letter · Appendix C: Notice of Claim · Appendix D: Reply to Claim · Appendix E: Glossary · Appendix F: Limitation Periods · Appendix G: Causes of Action · Appendix H: Court Fees · Appendix I: Tribunal Fees · Appendix J: Settlement Conference · Appendix K: Payment Hearing · Appendix L: Appeal

Chapter Twenty One: Welfare Law	I. Introduction · II. Governing Legislation and Resources · III. Eligibility · IV. Special Situations · V. Eligibility Factors · VI. Hardship Assistance · VII. Overpayments and Fraud · VIII. Rates and Payment Issues · IX. Additional Allowances and Benefits · X. Health Supplements · XI. Appeals

Chapter Twenty Two: Strata Law	I. Introduction · II. Governing Legislation · III. Strata Concept · IV. Strata Plan · V. Common Property and Assets · VI. Governance · VII. Management · VIII. Finances · IX. Collections · X. Bylaws and Rules · XI. Rentals and Accommodations · XII. Privacy · XIII. Insurance · XIV. Repair and Maintenance · XV. Dispute Resolution · XVI. Recourse to the Courts

Chapter Twenty Three: Referrals	I. General · II. Family Law & Women · III. Residential Tenancy · IV. Human Rights · V. Wills & Estates · VI. Immigration & Refugee · VII. Disability · VIII. Employment · IX. Debt · X. Indigenous · XI. Police Complaints · XII. Chinese Language · XIII. Others

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+{{REVIEWED LSLAP | date= August 15, 2024}}
 {{LSLAP Manual TOC|expanded = landlord}}
-Since a tenancy agreement has elements of both contract and interest in land, privity of contract and privity of estate exists between the parties to the agreement. Covenants relating to either the estate or the agreement are enforceable between such parties. Where either the reversionary (landlord) or the tenant assigns his or her interest, privity of estate only exists between the assignee and the remaining  original party. Terms and covenants that run with (touch and concern) the land are enforceable between these parties. One of the more common situations involving a covenant running with the land is where a security deposit is paid to a landlord, and the property is then subsequently  sold. After the building is sold to the second landlord, the security deposit obligations carry over to that second person. So a tenant who had lived in the building all along would be able to claim return of his or her security deposit from a new landlord, even though the tenant had originally paid the security deposit to a different person. See s 90 of the RTA regarding covenants that run with the land.
+Subject to the ''RTA'', the common law respecting landlord and tenant applies (''RTA'', s 91).
-A sub-lessee has neither privity of estate nor contract with the head landlord, but is still bound by all the covenants in the original lease.
-Covenants in leases are independent at common law, so that one party’s breach does not relieve the other party of performance obligations, unless the lease is forfeited. The innocent party in a tenancy breach situation is under no duty to mitigate damages under the common law of property. However, s 7(2) of the RTA invokes a clear-cut duty to do so in a residential tenancy (see also RTB Policy Guideline 5: Duty to Mitigate). For commercial tenancies (to which the RTA does not apply) the courts have begun to view them as contracts with all attendant rights and obligations, including the duty to mitigate where the plaintiff is seeking damages under contract (as opposed to property) law; see ''Highway Properties Ltd. v. Kelly, Douglas & Co. Ltd.'' (1971), 17 DLR (3d) 710 (SCC). However, there appears to be no duty to mitigate where  the landlord does not accept the tenant’s repudiation of the lease, and simply sues for rent as it comes due under the principles of property law. Should this situation arise, clients are strongly advised to consult an experienced lawyer.
-== A. Common Law and Residential Tenancies ==
-Subject to the RTA, the common law respecting landlord and tenant applies (RTA, s 91).
-=== 1. General Effects of Breach of the Agreement ===
-The common law rules of contract respecting the effect of one party’s breach of a material term on the other party’s performance obligations  apply to a residential tenancy agreement (RTA, s 91; see also [[Introduction to Consumer Protection (11:I) | Chapter 11: Consumer Protection]]). Thus, material terms are dependent, and the innocent party is entitled to withhold performance. However, withholding rent because a landlord has breached a material term is barred by the RTA. A tenant may withhold rent only as permitted by the RTA.
-Under contract rules, a party may not be able to repudiate a contract due to another’s breach of a non-material term, but a right of “forfeit” can arise under tenancy common law. Under s 45(3) of the RTA, where the landlord breaches a material term, the tenant may elect to treat the agreement as ended (an Arbitrator may have to decide whether a term is “material”). The landlord may end the tenancy only in accordance with  the RTA, because of abandonment, or due to an agreement. The RTA does not abolish the doctrines of privity of estate and contract, but it enables a person having a reversionary interest (i.e. a landlord) and a “person in possession” to enforce against each other all conditions  and terms, whether material or not, contained in the tenancy agreement for the possessed rental unit (s 83(4)).
-See also RTB Policy Guideline 8: Unconscionable and Material Terms.
-=== 2. Status of Other Statutes and Legal Doctrines ===
-==== a) Interesse Termini: Tenant Rights before Possession ====
+== A. Implied Surrender: Abandonment ==
-At common law, where an agreement for lease is entered into, or a tenancy agreement executed, and a tenant has not entered and taken possession, that tenant has only an ''interesse termini'', i.e. contractual rights. The tenant may not exercise rights incidental to the possession of property by suing a person in possession of or upon the rental unit for trespass, assigning, or subletting the rental unit. However, s 16 of the RTA provides that property and contractual rights under a residential tenancy agreement take effect at law from the date specified in the tenancy agreement as the commencement of the term of the tenancy agreement. The tenant may obtain an order respecting his or her right to possess or occupy the rental unit. Problems will arise when another tenant has come into possession; the tenant with the earlier commencement date may prevail over the later tenant, but the tenant in possession will probably be allowed to remain in possession.
+At common law, a lease may be ended by “surrender” due to conduct of the parties, consistent only with a “merging” of the tenancy interest back into the landlord’s (owner’s) estate. Surrender occurs, for example, where the tenant abandons the rental unit, and the landlord repossesses and re-rents. Generally, no further rent or compensation for the unexpired portion of the tenancy may be claimed on surrender. However, claims for lost rentals are allowed.
-==== b) Implied Surrender: Abandonment ====
-At common law, a lease may be ended by “surrender” due to conduct of the parties, consistent only with a “merging” of the tenancy interest back into the landlord’s (owner’s) estate. Surrender occurs, for example, where the tenant abandons and the landlord repossesses and re-rents. Generally, no further rent or compensation for the unexpired portion of the tenancy may be claimed on surrender. However, following ''Highway  Properties Ltd. v. Kelly, Douglas & Co. Ltd.'' (above), claims for lost rentals are allowed, provided the landlord notifies the tenant that the surrender is accepted subject to rights to claim for lost future rent.
 Abandonment is cause for ending a tenancy, but regardless of the wording of the tenant’s notice, or the wording of the acceptance of surrender, or the absence of a notice, abandonment gives rise to the landlord’s duty to mitigate.
-==== c) Frustration ====
+== B. Frustration ==
-At common law, the doctrine of frustration of contracts does not apply to a conveyance of an estate (e.g. a lease). However, there are cases  that have considered how the doctrine might apply to a lease or tenancy agreement where the thing transferred is completely destroyed (e.g. a suite is destroyed by fire or water).
-The doctrine of frustration now applies to residential tenancy agreements (RTA, s 92) and commercial leases (''Commercial Tenancy Act'', s 30). If some unforeseen event occurs that prevents the agreement from being performed, it will be considered to have been frustrated and is thereby terminated at the time of the event. Frustration will rarely be found where the event appears to be largely self-induced (and the result of acts or omissions which might themselves constitute a breach of covenant, e.g. a municipal closure order made pursuant to a fire bylaw where  the landlord failed to install sprinklers). If the event is totally self-induced, the perpetrator will not be able to establish frustration.  Two factors to consider beyond the normal contract law concerns are: 1) the length of the unexpired term at the time of frustration, and 2) the possibility of an alternative use of the rental unit.
-==== d) Mitigation of Damages: Duty to Re-rent ====
-Residential landlords and tenants have a duty to mitigate their damages where either has a claim against the other for losses due to the other’s breach of the agreement (RTA, s 7(2)). Where a tenant  ends  the  tenancy  illegally,  or  vacates  or abandons the rental unit other than in accordance with the RTA, the landlord has a duty  to  re-rent  the  rental unit  at  a  reasonable  price. Failure  to  do  so  may  result  in reduced compensation. See RTB Policy Guideline 5: Duty to Mitigate Loss.
-==== e) The Right to Distrain the Tenant’s Personal Goods ====
-Under the RTA, a landlord has no right to distrain (i.e. seize) a residential tenant’s personal goods for default in rental payment, nor may the landlord  seize a tenant’s personal goods to satisfy another claim or demand, unless the seizure is made by a person authorized by a court order or an enactment  (s 26(3) and (4)). If a landlord seizes goods contrary to s 26(3), the tenant may apply to the court for  an order to return the property, or for a monetary claim for damages. Note that a landlord may distrain the tenant’s goods where the tenant has abandoned the rental unit.
-== B. Damages, Debts, Compensation, and Specific Performance ==
-Where an enforceable term or condition has been breached, a number of remedies are available. The availability  of  remedies  is  restricted,  however,  by  the type  of  breach  (i.e.  material  term,  or  not)  and conduct involved.
-=== 1. Termination (Ending the Tenancy) ===
-A  term’s  breach  may  entitle  the  innocent  party  to  put  an  end  to  the  agreement,  and  either regain possession (landlord) or vacate the rental unit (tenant). Compensation or damages, in addition  to  termination,  may  also  be  available.  However,  it  is  risky  to  assume  a  breach  is fundamental  enough  to  put  an  end  to  an  agreement,  for  if  the  party  who  makes  that assumption is wrong, they may be held to be in breach and liable for damages. It is better to have such matters adjudicated.
-=== 2. Damages ===
-A person suffering loss due to the breach of an express, implied, or statutory term may apply for damages through dispute resolution under s 58(1) of the RTA, or, if not precluded by the RTA, by civil action in Small Claims or Supreme Court. Damages may be available where the tenant harms or destroys property. See RTB Policy Guideline 16: Claims in Damages.
-=== 3. Debt ===
-Under  s  6  of  the  RTA,  action  for  debt  may  be  taken for  rent arrears,  e.g. where  there is  an early ending of the tenancy by the tenant and loss of rent.
-=== 4. Duty to Mitigate ===
-Under  s  7(2)  of  the  RTA,  any  time  a  monetary  claim  arises  between  landlord  and  tenant, both have a duty to mitigate damages (i.e. minimize losses). For example, if a tenant breaks a lease that was for a fixed term of one year, the landlord could sue the tenant for the balance of  the  rent  payments.  Nonetheless,  the  landlord  has  a  duty  under  s  7(2)  to  try  to  minimize his  or  her  loss  by  re-renting  the  rental  unit  as  soon  as  possible,  rather  than  just  suing  the tenant for the whole year’s rent. See RTB Policy Guideline 5: Duty to Mitigate Loss.
-=== 5. Compensation ===
+The doctrine of frustration applies to residential tenancy agreements (''RTA'', s 92) and commercial leases (''Commercial Tenancy Act'', s 30). If some unforeseen event occurs that prevents the agreement from being performed, it will be considered to have been frustrated and is thereby terminated at the time of the event. Frustration will rarely be found where the event appears to be largely self-induced (and the result of acts or omissions which might themselves constitute a breach of covenant, e.g., a municipal closure order made pursuant to a fire bylaw where the landlord failed to install sprinklers). If the event is totally self-induced, the perpetrator will not be able to establish frustration. Two factors to consider beyond the normal contract law concerns are: 1) the length of the unexpired term at the time of frustration, and 2) the possibility of alternative use of the rental unit. If the lease is one to which the ''RTA'' doesn’t apply, by common law the doctrine of frustration would not apply.
-An  Arbitrator  may  award “compensation”  to  an  innocent  party  (a  tenant  or  landlord)  who has suffered direct loss due to a “contravention” of the RTA by the other party.
+== C. The Right to Distrain the Tenant’s Personal Goods ==
-Persons  merely  in  possession  can  enforce  a  covenant  or  condition  of  a  residential  tenancy agreement, take the above action, or be acted against.Specific performance may also be an applicable remedy. This does not apply to an illegal squatter.
+Under the ''RTA'', a landlord has no right to distrain (i.e., seize) a residential tenant’s personal goods for default in rental payment, nor may the landlord seize a tenant’s personal goods to satisfy another claim or demand, unless the seizure is made by a person authorized by a court order or an enactment (s 26(3) and (4)). If a landlord seizes goods contrary to s 26(3), the tenant may apply to the court for an order to return the property, and/or for a monetary claim for damages. A landlord may, where personal property has been abandoned by the tenant, remove it from the residential property, and must deal with it in accordance with the ''RTR'', which impose specific obligations on landlords in these circumstances. See Sections 24 and 25 of the ''RTR'' for specific obligations of landlords.
-Section  95  is  a  penalty  section,  which  states  that  breaches  of  the  listed  sections  (mostly landlord  breaches)  are  punishable  by  fine.  While  it  would  appear  that  there  has  been  little resort  to  this  offence  section,  it  may  be  prudent  to  advise  landlords  of  this  potential consequence of a breach (see [[Dispute Resolution in Residential Tenancies (19:X)#1. Disputes Covered by Dispute Resolution | Section X.A.1: Disputes Covered by dispute resolution]]).
+== D. Duty to Mitigate ==
-== C. Class Action ==
+Under s 7(2) of the ''RTA'', any time a monetary claim arises between landlord and tenant, both have a duty to mitigate damages (i.e., minimize losses). For example, if a tenant breaks a lease that was for a fixed term of one year, the landlord could sue the tenant for the balance of the rent payments. Nonetheless, the landlord has a duty under s 7(2) to try to minimize their loss by re-renting the rental unit as soon as possible, rather than just suing the tenant for the whole year’s rent. A landlord who makes such a claim must prove that they took reasonable steps to re-rent the unit and was not able to do so. See RTB Policy Guideline 5: Duty to Mitigate Loss.
-A class action is an action taken by one or more persons on behalf of a number of people who have a common  interest  in  that  action.  Where  the  matter  involves  more  than  one  person  with  a  common interest, an order may be made affecting all persons who have the same common interest. Note that for  hidden  rent  increases,  the  RTB  may  limit  the  application  of  its  order  to  one  or  more  of  the affected rental units. If several tenants seek a joint hearing, under the RTA, an Arbitrator may hear the cases jointly without the consent of the landlord.
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