Repossession of a Rental Unit: Your Rights and Obligations as the Owner of a Multiplex

Purchasing a residential multiplex can be an excellent investment strategy. But what if all the units are occupied and you wish to live in the building? Many landlords believe they can repossess a rental unit simply because they are the owners. In reality, repossession of a rental unit is strictly regulated under Québec law. Here is what you need to know.

Under what conditions is repossession legal?

Repossession of a rental unit is only permitted under certain conditions, including:

1. You are the sole owner or a co-owner in indivision with your spouse.

   • If the building belongs to a corporation, a company, or several co-owners who are not spouses, repossession is not permitted.

     
     

2. Repossession is for the purpose of housing yourself, your children, your parents, or a person under your care.

   • You cannot repossess a unit to house a friend, a distant relative, or for commercial purposes.

     
     

3. You respect the legal notice period.

   • For a fixed-term lease: you must give the tenant notice at least 6 months before the end of the lease.

   • For an indeterminate lease: notice must be given at least 6 months before the intended date of repossession.

     
     

4. Your tenants are under 65 years of age.

   • If your tenants are 65 or older, have lived in the unit for more than 10 years, and have a low income, repossession may not be possible.

     
     

The tenant’s right to refuse

Even if you meet all the legal conditions and are entitled to repossess the unit, the tenant can refuse. In that case, you must file an application with the Administrative Housing Tribunal (TAL) and demonstrate that you are acting in accordance with the law.

The TAL will examine your application and will require serious and credible evidence that:

• you truly intend to occupy the unit;

• the repossession is being carried out according to the rules;

• no abuse of rights is involved.

  
  

Pitfalls to avoid

Even if you meet the legal conditions for repossession, certain facts can weaken your case before the TAL:

• A similar unit becomes available in the same building.

• You already own another property nearby with comparable units becoming available.

• Your true intention to occupy the unit is questioned, for example repossessing in order to re-let at a higher rent.

In these cases, the credibility and consistency of your approach are essential.

For a better understanding of your rights, we invite you to consult articles 1957 to 1970 of the Civil Code of Québec, reproduced at the end of this text.

Why consult a lawyer?

Repossession of a rental unit is an important right, but it must be exercised carefully. A poorly prepared approach can result in your application being denied and may expose you to challenges.

A lawyer can help you:

• assess whether you meet the legal conditions;

• prepare a proper notice and avoid procedural errors;

• develop a strategy that considers your other properties and units;

• present your evidence clearly and convincingly before the TAL.

Conclusion

Owning an occupied multiplex does not mean having unlimited rights. Repossession of a rental unit is a legal remedy, but one that is strictly regulated. To avoid pitfalls and maximize the chances of success, it is essential to be well informed and to prepare strong evidence.

At NDB Avocats inc., we support landlords and property managers in their repossession proceedings to protect their rights and secure their residential projects.

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Civil Code of Québec

IV. — Repossession of a dwelling and eviction

1957. The lessor of a dwelling who is the owner of the dwelling may repossess it as a residence for himself or herself or for ascendants or descendants in the first degree or for any other relative or person connected by marriage or a civil union of whom the lessor is the main support.

The lessor may also repossess the dwelling as a residence for a spouse of whom the lessor remains the main support after a separation from bed and board or divorce or the dissolution of a civil union.

1958. The owner of an undivided share of an immovable may not repossess any dwelling in the immovable unless the only other owner is his or her spouse.

1959. The lessor of a dwelling may evict the lessee to subdivide the dwelling, enlarge it substantially or change its destination.

1959.1. The lessor may not repossess a dwelling or evict a lessee if the lessee or the lessee’s spouse, at the time of repossession or eviction, is 65 years of age or over, has occupied the dwelling for at least 10 years and has income equal to or less than 125% of the maximum income qualifying the lessee or spouse for a dwelling in low-rental housing according to the By-law respecting the allocation of dwellings in low rental housing (chapter S-8, r. 1).

However, the lessor may repossess the dwelling if

(1) the lessor is 65 years of age or over and wishes to repossess the dwelling as a residence for himself;

(2) the beneficiary of the repossession is 65 years of age or over;

(3) the lessor is an owner-occupant 65 years of age or over and wishes to have a beneficiary less than 65 years of age reside in the same immovable as himself.

The Société d’habitation du Québec shall publish the maximum income thresholds qualifying a lessee for a dwelling in low-rental housing on its website.

1959.2. A lessor may not evict a lessee solely because of a change of destination referred to in article 1955.1, unless the lessor offered, not later than one month before sending the notice of eviction, to resiliate the lease and to enter into a new lease, without interruption and in accordance with the first paragraph of that article, and the lessee has refused that offer. The offer must indicate, in particular, the services, accessories, dependencies and other benefits provided under the previous lease that will no longer be provided, as well as the cost of each of them. It must also reproduce the content of article 1955.1 and of this article.

Within one month after receiving the lessor’s offer, the lessee is bound to inform the lessor of whether or not the lessee accepts the offer; the proposal is deemed to have been refused if the lessee fails to respond.

A lessee who accepts such an offer may nevertheless, within one month after entering into the lease, apply to the court to have the rent fixed in accordance with the first paragraph of article 1955.1 or, as applicable, for a ruling on any other modification in comparison with the resiliated lease.

1960. A lessor wishing to repossess a dwelling or to evict a lessee shall notify him at least six months before the expiry of the lease in the case of a lease with a fixed term; if the term of the lease is six months or less, the notice is of one month.

In the case of a lease with an indeterminate term, the notice shall be given six months before the date of repossession or eviction.

1961. In a notice of repossession, the date fixed for the dwelling to be repossessed, the name of the beneficiary and, where applicable, the degree of relationship or the bond between the beneficiary and the lessor shall be indicated.

In a notice of eviction, the reason for and the date of eviction shall be indicated.

These notices shall reproduce the content of article 1959.1. In the case of a notice of eviction that concerns a dwelling situated in a private seniors’ residence or in another lodging facility where services of a personal nature provided to the lessee are provided to seniors, the notice must also reproduce the content of articles 1955.1 and 1959.2.

Repossession or eviction may take effect after the date set forth in the notice, upon application by the lessee and with the authorization of the court.

1962. Within one month after receiving a notice of repossession or of eviction, the lessee is bound to notify the lessor as to whether or not he intends to comply with the notice; otherwise, he is deemed to have refused to vacate the dwelling.

1963. If the lessee refuses to vacate the dwelling, the lessor may nevertheless repossess it or evict the lessee with the authorization of the court.

The application for authorization must be made within one month after the refusal by the lessee; the lessor shall show the court that he truly intends to repossess the dwelling or evict the lessee for the purpose mentioned in the notice and not as a pretext for other purposes and, in the case of an eviction, that the subdivision, enlargement or change of destination of the dwelling is permitted by law.

1964. The lessor may not, without the consent of the lessee, avail himself of the right to repossess the dwelling where he owns another dwelling that is vacant or offered for rent on the date fixed for repossession, and that is of the same type as that occupied by the lessee, situated in the same neighbourhood and at equivalent rent.

1965. The lessor shall pay to the evicted lessee reasonable moving expenses as well as an indemnity equal to one month’s rent for each year of uninterrupted lease of the dwelling by the lessee, which indemnity may not however exceed an amount representing 24 months’ rent or be less than an amount representing 3 months’ rent. If the lessee considers that the injury suffered warrants a greater indemnity, the lessee may apply to the court to have the amount fixed.

Unless the court decides otherwise, the indemnity is payable at the expiry of the lease; the moving expenses are payable on presentation of vouchers.

1966. (Repealed)

1967. Where the court authorizes repossession or eviction, it may impose such conditions as it considers just and reasonable, including, in the case of repossession, payment to the lessee of an indemnity equivalent to his moving expenses.

1968. The lessee may recover damages resulting from repossession or eviction, whether or not he has consented to it, unless the lessor proves that the repossession or eviction was in good faith.

The lessee may also apply for punitive damages against the lessor if the lessee shows that the repossession or eviction was in bad faith.

1969. Where the lessor does not exercise his right of repossession or eviction on the fixed date, the lease is renewed by operation of law provided the lessee continues to occupy the dwelling with the consent of the lessor. In that case, the lessor, within one month after the date fixed for repossession or eviction, may apply to the court to have a new rent fixed.

The lease is also renewed where the court refuses an application for repossession or eviction and renders its decision after expiry of the period provided to avoid the renewal of the lease or to modify it. The lessor may then, within one month after the final decision, apply to the court to fix the rent.

1970. A dwelling that has been the subject of a repossession or eviction may not, without the authorization of the court, be leased or used for a purpose other than that for which the right was exercised.

If the court gives authorization to lease the dwelling, it fixes the rent.