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Difference between revisions of "Leases"
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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. | ||
