Bill 31 on housing which was introduced on June 9th created an unprecedented wave of reactions on the changes to lease assignments.
Although the bill includes several other changes that affect the landlords’ obligations and increase the protection of tenants, there has been a wave of dissatisfaction with only one section of the bill: i.e., the assignment of leases.
Tenants are unhappy because they use this option to transfer leases and control thereby the amount of rent asked. They thus divert the primary purpose which was to allow tenants to free themselves from their obligations vis-à-vis the lease.
As Mme France-Élaine Duranceau, Minister of Housing, remarked while meeting the media, “Is the tenant the owner of the building? No. It is not the prerogative of the tenant to have a say in the rent increase awaiting the next tenant.”
For the Association des Propriétaires du Québec this proposal to allow landlords to terminate the lease upon receipt of a notice of assignment is a good thing, it is to return to the main reasons for the coming into force of the concept of lease assignment: which is to release oneself from the lease obligations.
The assignment of lease is a mechanism that exists and must be allowed to a tenant who must leave his lease before its expiry. But not for any other reason.
Section 1870 of the Civil Code of Québec states the following:
1870. A lessee may sublease all or part of the leased property or assign the lease. In either case, he is bound to give the lessor notice of his intention and the name and address of the intended sublessee or assignee and to obtain the lessor’s consent to the sublease or assignment.
The choice of the future tenant is a right that belongs to the owner. In addition to the aspect of meeting the future tenant, the landlord must ensure the peaceful enjoyment of the premises and be sure that the tenant will meet his financial obligations.
Encouraging the assignment of leases is interfering in a field of jurisdiction that has nothing to do with the tenant who wishes to leave.
The Association des Propriétaires du Québec (APQ) has asked to participate in the consultations and will defend this change and demonstrate that the new obligations in the rest of Bill 31 risk harming the Québec rental housing stock.
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