Corporation’s Right to Evict for Personal Use


Question:

The Tenant pays rent to a corporation the registered owner of a house.

Can the person who bought the house under the name of the corporation give the tenant notice with the intention of taking over the house for their own personal use at the expiration of the term of the tenancy?

Answer:

This matter was decided by the Ontario Court of Appeal several years ago. It has always been controversial.

Termination by a corporation is to be decided on a case by case basis.

A personal, closely held, one shareholder or family corporation gets a “by” on this. An ordinary investment corporation would not.

The Court of Appeal in Slapsys (1406393 Ontario Inc.) and Abrams (2010) decided that a Landlord purporting to terminate the tenancy and who was the sole shareholder of the corporation which owned the property, was entitled to recover possession for personal use.

Prior to this case, corporate owners did not have the rights to personal use.

In YCC 639 and Lee (Divisional Court 2013), the Court permitted a condominium to evict upon expiration of the lease so it could reoccupy the unit for its own use by providing it to its superintendent.

Basically, the Courts have been fairly generous on this point and the Landlord and Tenant Board now follows suit.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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