Difference between revisions of "Tenancy Agreements (19:II)"

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:'''a) Covenants and Conditions'''
'''a) Covenants and Conditions'''


:A covenant in a tenancy agreement consists of a promise by a person that a certain thing must or must not be done (the RTA eliminates the word “covenant” and uses the more modern word “term”). A “Material Term”, as used in the RTA, is a term going to the root of the relationship and the tenancy agreement. Landlords and tenants may agree to any term they wish, as long as it is not unconscionable or contrary to the RTA. Terms contrary to the RTA may not be identified in some cases until dispute resolution, and a tenant is free to argue that a term violates the RTA and should, therefore, be void. The Arbitrator will take this into consideration when determining reasonableness. For more information, see '''RTB Policy Guidelines 8: Unconscionable and Material Terms'''.
A covenant in a tenancy agreement consists of a promise by a person that a certain thing must or must not be done (the RTA eliminates the word “covenant” and uses the more modern word “term”). A “Material Term”, as used in the RTA, is a term going to the root of the relationship and the tenancy agreement. Landlords and tenants may agree to any term they wish, as long as it is not unconscionable or contrary to the RTA. Terms contrary to the RTA may not be identified in some cases until dispute resolution, and a tenant is free to argue that a term violates the RTA and should, therefore, be void. The Arbitrator will take this into consideration when determining reasonableness. For more information, see '''RTB Policy Guidelines 8: Unconscionable and Material Terms'''.


:'''b) Express, Implied and Statutory Terms'''
'''b) Express, Implied and Statutory Terms'''


:Valid express terms or conditions override any implied terms or “usual terms” that might otherwise apply at common law. For residential tenancies, the RTA deems some express terms to be unenforceable The RTA also establishes statutory terms, deemed to be terms in every agreement, that override any express or implied term to the contrary. For tenancies not governed by the RTA, a court will find implied obligations and insert the usual terms if the parties have failed to expressly agree to certain matters.
Valid express terms or conditions override any implied terms or “usual terms” that might otherwise apply at common law. For residential tenancies, the RTA deems some express terms to be unenforceable The RTA also establishes statutory terms, deemed to be terms in every agreement, that override any express or implied term to the contrary. For tenancies not governed by the RTA, a court will find implied obligations and insert the usual terms if the parties have failed to expressly agree to certain matters.


:'''c) Express Terms'''
'''c) Express Terms'''


:Parties may write their own tenancy agreement with their own terms or may use a standard form tenancy agreement to which they can add their own extra terms. Parties may also adopt a lease in conformity with the Land Transfer Form Act, RSBC 1996, c 252, p 2.
Parties may write their own tenancy agreement with their own terms or may use a standard form tenancy agreement to which they can add their own extra terms. Parties may also adopt a lease in conformity with the Land Transfer Form Act, RSBC 1996, c 252, p 2.


:The ''RTA'' requires that all tenancy agreements include standard terms outlining key statutory rights and responsibilities of the tenant and landlord (see ''RTA'' s 12, and the Schedule to the Regulation). The standard terms cover repairs, payment of rent, rent increases, security deposits, assignment or sub-let, occupants and invited guests, entry of the residential premises by the landlord, locks, ending the tenancy, and the application of the ''RTA''. To assist landlords and tenants, the Ministry created a standard Residential Tenancy Agreement, available online (https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/forms). This Agreement incorporates suggestions put forward by landlord and tenant stakeholders and includes the prescribed terms found in the Schedule of the Regulation.
The ''RTA'' requires that all tenancy agreements include standard terms outlining key statutory rights and responsibilities of the tenant and landlord (see ''RTA'' s 12, and the Schedule to the Regulation). The standard terms cover repairs, payment of rent, rent increases, security deposits, assignment or sub-let, occupants and invited guests, entry of the residential premises by the landlord, locks, ending the tenancy, and the application of the ''RTA''. To assist landlords and tenants, the Ministry created a standard Residential Tenancy Agreement, available online (https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/forms). This Agreement incorporates suggestions put forward by landlord and tenant stakeholders and includes the prescribed terms found in the Schedule of the Regulation.


:For residential tenancies, the following are examples of express terms that are '''void and unenforceable''':
For residential tenancies, the following are examples of express terms that are '''void and unenforceable''':
:*a term purporting to hold that the ''RTA'' does not apply to the agreement or attempts to avoid the ''RTA'' (s 5(1) and (2));  
:*a term purporting to hold that the ''RTA'' does not apply to the agreement or attempts to avoid the ''RTA'' (s 5(1) and (2));  
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:**The fixed term tenancy was created in circumstances where the landlord or landlord’s close family plans in good faith to occupy the unit after the tenancy ends, pursuant to RTR s 13.1.  
:**The fixed term tenancy was created in circumstances where the landlord or landlord’s close family plans in good faith to occupy the unit after the tenancy ends, pursuant to RTR s 13.1.  


:Some included requirements of the ''RTA'' state that the tenant:
Some included requirements of the ''RTA'' state that the tenant:
:*must maintain reasonable health, cleanliness, and sanitary standards throughout the rental unit and other areas of the property to which the tenant has access;
:*must maintain reasonable health, cleanliness, and sanitary standards throughout the rental unit and other areas of the property to which the tenant has access;
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:*shall not pay more than one-half of one month’s rent for each of the security deposit and/or pet damage deposit.
:*shall not pay more than one-half of one month’s rent for each of the security deposit and/or pet damage deposit.


:Similarly, terms in a short form lease that are inconsistent with the ''RTA'' are unenforceable. The parties may, however, enter into a separate collateral agreement, under which a clause requiring the tenant to perform repairs is binding on the tenant, so long as there is some value given in return (i.e. lower rates of rent).
Similarly, terms in a short form lease that are inconsistent with the ''RTA'' are unenforceable. The parties may, however, enter into a separate collateral agreement, under which a clause requiring the tenant to perform repairs is binding on the tenant, so long as there is some value given in return (i.e. lower rates of rent).


:'''d) Reasonable Terms'''
'''d) Reasonable Terms'''


:Changes in the ''RTA'' allow more ability to agree to any term landlords and tenants wish than the repealed Act did. However, a term of the tenancy is unenforceable if (''RTA'', s 6):
:Changes in the ''RTA'' allow more ability to agree to any term landlords and tenants wish than the repealed Act did. However, a term of the tenancy is unenforceable if (''RTA'', s 6):
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:(c) the term is not expressed in a manner that clearly communicates the rights and obligations under it.
:(c) the term is not expressed in a manner that clearly communicates the rights and obligations under it.


:See '''Policy Guideline 8: Unconscionable and Material Terms'''.
See '''Policy Guideline 8: Unconscionable and Material Terms'''.


:'''NOTE:''' The RTR defines “unconscionable” for the purposes of s 6(3)(b) of the ''RTA'' as follows: a term of a tenancy agreement is “unconscionable if the term is oppressive or grossly unfair to one party”.
:'''NOTE:''' The RTR defines “unconscionable” for the purposes of s 6(3)(b) of the ''RTA'' as follows: a term of a tenancy agreement is “unconscionable if the term is oppressive or grossly unfair to one party”.
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