Introduction to Landlord and Tenant Law (19:I): Difference between revisions

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{{REVIEWED LSLAP | date= August 15, 2024}}
{{LSLAP Manual TOC|expanded = landlord}}
{{LSLAP Manual TOC|expanded = landlord}}


As  contracts,  tenancy  agreements  constitute  commercial relations. The ''Commercial  Tenancy  Act'',  RSBC  1996,  c 57, governs that aspect of tenancy. Special laws, rules, and procedures have been established for premises and tenancy  agreements  characterized  as  residential. Landlord  and tenant  matters  not  subject  to the RTA, or exempted from particular provisions, are covered by the ''Commercial Tenancy Act''. See RTB Policy Guideline 14: Type of Tenancy: Commercial or Residential.  
British Columbia’s Landlord-tenant law was written to protect the rights and identify the responsibilities of both landlords and tenants. The law serves to prevent and resolve disputes that may arise within a tenancy, in the clearest and lowest-conflict manner possible. This guide seeks to provide basic legal information, including about the rights and responsibilities of tenants and landlords, and about the processes available for resolving disputes between tenants and landlords.  


== A. Relationship of Landlord and Tenant ==
The primary source of landlord-tenant law in British Columbia is the ''Residential Tenancy Act'' [''RTA'']. The ''Manufactured Home Park Tenancy Act'', SBC 2002, c 77 [''MHPTA''] is a counterpart to the RTA that applies to owners of manufactured homes who rent the site on which their homes sit. As these statutes were enacted to provide tenants with protections beyond that which is offered by the common law, ambiguities in language must be interpreted in favour of tenants ([https://canlii.ca/t/1qnxb#par11 ''Berry and Kloet v. British Columbia (Residential Tenancy Act, Arbitrator)'', 2007 BCSC 257] at para 11).


=== 1. In General ===
The ''RTA'' sets out the rights and obligations of landlords and tenants. Landlords and tenants enter into tenancy agreements that set out further rights and obligations. A tenancy agreement means an agreement, whether written or oral, express or implied, between a landlord and a tenant, respecting possession of a rental unit, use of common areas and services and facilities. It also includes a licence to occupy a rental unit.


Before entering into an agreement, a tenant should find out who owns the property and who rents  the property  to  ensure  that the new  tenant  is  not  leasing  from  a  current  tenant – see [[{{PAGENAME}}#2. Assignment and Subletting | Section XV.A.2: Assignment and Subletting]], below.  A  tenant  should  ensure  that  he  or she  does  not enter  into  an  agreement  with  a  company  that  is  not  yet  incorporated –  see [[{{PAGENAME}}#3. Pre-Incorporation Contracts | Section XV.A.3: Pre-Incorporation Contracts]], below. A  prospective  tenant  should perform  a  company  search  in  order  to  determine  if  the  company  is  incorporated. See [[Foreword to Small Claims (20:I) | Chapter 20 Small Claims  Procedure]]  for  more  information  on  how  to  do  a  company search.  A  prospective  tenant  may  also  want  to  do  a  title  search  at the  Land  Title  Office  to determine  whether  he  or  she  is  dealing  with  the  registered  owner  or  a  tenant  looking  to sublease.  
The Residential Tenancy Branch (“RTB”) is the government body that adjudicates disputes covered under the ''RTA'' or the ''MHPTA''. It has published many Policy Guidelines that expand beyond the ''RTA'', and the ''Residential Tenancy Regulation'' [''RTR'']. They help create greater predictability and consistency when the RTB adjudicates tenancy disputes as well as summarize tenancy law in British Columbia. Although the Policy Guidelines are highly persuasive and are frequently followed by RTB arbitrators, they are not absolutely binding ([https://canlii.ca/t/k640z#par42 ''Shuster v. British Columbia (Residential Tenancy Branch)'', 2024 BCCA 282] at para 42).


A  new  tenant  should  find  out  how  the property  is  zoned  to  ensure  lawful  use  of the property. Also, using the property for a different purpose than that outlined in the lease is a breach of the agreement. To vary the lease, both parties must consent.  
This Chapter covers the rights and obligations of landlords and tenants that are under a tenancy agreement, as well as seeking dispute resolution at the Residential Tenancy Branch. As this Chapter primarily covers the ''RTA'', unless otherwise specified, any statement in this Chapter should be presumed to apply to the ''RTA'' and may or may not apply to the ''MHPTA''.


=== 2. Assignment and Subletting ===
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When  the  tenant’s  interest  is  conveyed  to  a  third  party  for  the  remainder  of  the  term,  the lease is said to have been assigned. The assignee becomes a tenant of the landlord.
 
If  the  premises  are  to  revert  to  the  original  tenant  before  the  full  term  of  the  lease,  a  sub-lease is created. Note that a landlord-tenant relationship exists between the landlord and sub-tenant. If both parties live in the unit, payment of rent by a new tenant to the original tenant may also create a sub-tenancy.
 
Most  leases  require  the  landlord’s  consent  before  an  assignment  or  sublet  is  made.  Such clauses usually  specify  that  the  landlord’s  consent  will  not  be unreasonably  withheld.  If  the landlord  does  withhold  his  or  her  consent  unreasonably,  the  tenant  may  proceed  without consent, with litigation as the likely outcome. Tenants should decide if they want to deal with that  or  if  they want  to commence litigation  on  their  own  right  to  obtain  an  order  that  they can proceed. A landlord’s wish to charge higher rent or to prevent the tenant from receiving a premium by subletting are not reasonable grounds for withholding consent.
 
The  onus  is  on  the  tenant  to  show  that  the landlord’s  refusal is unreasonable. There  are  no fixed rules  governing  reasonable  or unreasonable withholding of consent.  The landlord  can charge  a fee for  the  tenant  to  sublet  or  assign  the  rental  property,  and  that  does  not  negate the landlord’s consent. The lease itself and all the circumstances must be considered.
 
=== 3. Pre-Incorporation Contracts ===
 
A  company  is  not  bound  by  contracts  it  enters  into  before  incorporation.  Where  a  person enters into  a contract in  the  name  of  a  company  before that company’s  incorporation,  that person may be liable for breach of warranty. To avoid difficulty, the lease should be entered into personally with the right to assign the lease to the company once incorporated.
 
=== 4. Partnerships ===
 
A  partner  enters  into  contracts  on  behalf  of  all  partners  for  any  transaction  that  is  in  the ordinary course  of  business. Thus,  a  lease entered into in  the firm’s  name  is  binding  on  the firm and its partners.
 
== B. The Agreement ==
 
=== 1. Distinction between Lease and License ===
 
A license is a purely contractual relationship. It gives the licensee no interest in the licensor’s real  property.  Restaurants  that  operate  in  department  stores  are  usually  run  as  a  licensee liquor arrangement, for example.
 
The  courts  distinguish  leases  from  licenses  by  examining  whether  the  parties  intended  to grant  exclusive  possession  to  the  occupants,  or  merely  permission  to  occupy  subject  to  the rights of the owner. It is important for a prospective tenant to read the contract to determine what  type  of  relationship  they  are entering  into.  Words in  the  agreement  such  as “lease”, “landlord” or “tenant” are, in the absence of a contrary statement, conclusive evidence of an intention  to  create  a  lease.  Exclusive  possession  of  the  tenant  does  not  require  absolute exclusion of the landlord. If the contract refers to a “joint venture,” then it is probably NOT a lease; a joint venture creates liabilities in the tenant and does not grant exclusive possession or an interest in the land.
 
=== 2. Distinction between Lease and Agreement to Lease ===
 
A lease is an immediate conveyance of land (though possession may be postponed) while an agreement for lease requires the parties to execute a lease at a later date. However, where the tenant is in possession, an agreement to lease may be construed as a lease.
 
=== 3. Requirements for a Valid Agreement ===

Latest revision as of 07:23, 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.



British Columbia’s Landlord-tenant law was written to protect the rights and identify the responsibilities of both landlords and tenants. The law serves to prevent and resolve disputes that may arise within a tenancy, in the clearest and lowest-conflict manner possible. This guide seeks to provide basic legal information, including about the rights and responsibilities of tenants and landlords, and about the processes available for resolving disputes between tenants and landlords.

The primary source of landlord-tenant law in British Columbia is the Residential Tenancy Act [RTA]. The Manufactured Home Park Tenancy Act, SBC 2002, c 77 [MHPTA] is a counterpart to the RTA that applies to owners of manufactured homes who rent the site on which their homes sit. As these statutes were enacted to provide tenants with protections beyond that which is offered by the common law, ambiguities in language must be interpreted in favour of tenants (Berry and Kloet v. British Columbia (Residential Tenancy Act, Arbitrator), 2007 BCSC 257 at para 11).

The RTA sets out the rights and obligations of landlords and tenants. Landlords and tenants enter into tenancy agreements that set out further rights and obligations. A tenancy agreement means an agreement, whether written or oral, express or implied, between a landlord and a tenant, respecting possession of a rental unit, use of common areas and services and facilities. It also includes a licence to occupy a rental unit.

The Residential Tenancy Branch (“RTB”) is the government body that adjudicates disputes covered under the RTA or the MHPTA. It has published many Policy Guidelines that expand beyond the RTA, and the Residential Tenancy Regulation [RTR]. They help create greater predictability and consistency when the RTB adjudicates tenancy disputes as well as summarize tenancy law in British Columbia. Although the Policy Guidelines are highly persuasive and are frequently followed by RTB arbitrators, they are not absolutely binding (Shuster v. British Columbia (Residential Tenancy Branch), 2024 BCCA 282 at para 42).

This Chapter covers the rights and obligations of landlords and tenants that are under a tenancy agreement, as well as seeking dispute resolution at the Residential Tenancy Branch. As this Chapter primarily covers the RTA, unless otherwise specified, any statement in this Chapter should be presumed to apply to the RTA and may or may not apply to the MHPTA.

© Copyright 2024, The Greater Vancouver Law Students' Legal Advice Society.