Question:
A couple are going through a divorce settlement. They are both on the title to various investment properties. The Court has ordered all properties listed for sale immediately.
One of the parties creates and signs new lease agreements for each property without the other’s knowledge in order to deter the sales.
Can these leases be upheld without both parties consent and signatures?
Answer:
Interesting situation. This sounds like it is contempt of Court, or at the very least disobeying a Court Order.
The Judge ordered the property sold, not leased.
The Judge will likely:
- set aside the lease,
- require the one spouse to pay all the Tenant’s related expenses, and
- the offending person could face a substantial fine and possible jail time.
So, make sure the matter goers to Superior Court rather than the Landlord and Tenant Board (LTB). The latter body has no jurisdiction to deal with either disobeying Court Orders or contempt of Court.
Brian Madigan LL.B., Broker