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Lease (articles 1851 à 2000)

Written by Me Sébastien Fiset , LL.B., B.A.A.
Friday, 11 June 2010 07:47

CHAPTER IV

LEASE

(Last update June 3, 2010)

DIVISION I

NATURE OF LEASE

1851. Lease is a contract by which a person, the lessor, undertakes to provide another person, the lessee, in return for a rent, with the enjoyment of a movable or immovable property for a certain time.

The term of a lease is fixed or indeterminate.

1852. The rights resulting from the lease may be published.

Publication is required, however, in the case of rights under a lease with a term of more than one year in respect of a road vehicle or other movable property determined by regulation, or of any movable property required for the service or operation of an enterprise, subject, in the latter case, to regulatory exclusions; effect of such rights against third persons operates from the date of the lease provided they are published within 15 days. A lease with a term of one year or less is deemed to have a term of more than one year if, by the operation of a renewal clause or other covenant to the same effect, the term of the lease may be increased to more than one year.

The transfer of rights under a lease requires or is open to publication, according to whether the rights themselves require or are open to publication.

1853. The lease of movable property is not presumed; a person using the property by sufferance of the owner is presumed to have borrowed it by virtue of a loan for use.

The lease of immovable property is presumed where a person occupies the premises by sufferance of the owner. The term of the lease is indeterminate; the lease takes effect upon occupancy and entails the obligation to pay a rent corresponding to the rental value.

DIVISION II

RIGHTS AND OBLIGATIONS RESULTING FROM LEASE

§ 1. —  General provisions

1854. The lessor is bound to deliver the leased property to the lessee in a good state of repair in all respects and to provide him with peaceable enjoyment of the property throughout the term of the lease.

He is also bound to warrant the lessee that the property may be used for the purpose for which it was leased and to maintain the property for that purpose throughout the term of the lease.

1855. The lessee is bound to pay the agreed rent and to use the property with prudence and diligence during the term of the lease.

1856. Neither the lessor nor the lessee may change the form or destination of the leased property during the term of the lease.

1857. The lessor has the right to ascertain the condition of the leased property, to carry out work thereon and, in the case of an immovable, to have it visited by a prospective lessee or acquirer, but he is bound to exercise his right in a reasonable manner.

1858. The lessor is bound to warrant the lessee against legal disturbances of enjoyment of the leased property.

Before pursuing his remedies, the lessee shall notify the lessor of the disturbance.

1859. The lessor is not liable for damage resulting from the disturbance of enjoyment of the property by the act of a third person; he may be so liable where the third person is also a lessee of that property or is a person whom the lessee allows to use or to have access to the property.

If the enjoyment of the property is diminished by the disturbance, however, the lessee retains his other remedies against the lessor.

1860. A lessee is bound to act in such a way as not to disturb the normal enjoyment of the other lessees.

He is liable, towards the lessor and the other lessees, for damage that may result from a violation of that obligation, whether the violation is due to his own act or to the act of persons he allows to use or to have access to the property.

In case of violation of this obligation, the lessor may demand resiliation of the lease.

1861. A lessee who is disturbed by another lessee or by persons whom another lessee allows to use or to have access to the property may obtain, according to the circumstances, a reduction of rent or the resiliation of the lease, if he notified the common lessor of the disturbance and if the disturbance persists.

He may also recover damages from the common lessor unless the lessor proves that he acted with prudence and diligence; the lessor has a recourse against the lessee at fault for compensation for the injury suffered by him.

1862. The lessee is liable for damage suffered by the lessor by reason of loss affecting the leased property unless he proves that the loss is not due to his fault or that of persons he allows to use or to have access to the property.

Where the leased property is an immovable, the lessee is not liable for damages resulting from a fire unless it is proved that the fire was due to his fault or that of persons he allowed to have access to the immovable.

1863. The nonperformance of an obligation by one of the parties entitles the other party to apply for, in addition to damages, specific performance of the obligation in cases which admit of it. He may apply for the resiliation of the lease where the nonperformance causes serious injury to him or, in the case of the lease of an immovable, to the other occupants.

The nonperformance also entitles the lessee to apply for a reduction of rent; where the court grants it, the lessor, upon remedying his default, is entitled to reestablish the rent for the future.

§ 2. —  Repairs

1864. The lessor is bound, during the term of the lease, to make all necessary repairs to the leased property other than lesser maintenance repairs, which are assumed by the lessee unless they result from normal aging of the property or superior force.

1865. The lessee shall allow urgent and necessary repairs to be made to ensure the preservation or enjoyment of the leased property.

A lessor who makes such repairs may require the lessee to vacate or be dispossessed of the property temporarily but, if the repairs are not urgent, he shall first obtain the authorization of the court, which also fixes the conditions required to protect the rights of the lessee.

The lessee retains, according to the circumstances, the right to obtain a reduction of rent, to apply for the resiliation of the lease or, if he vacates or is dispossessed of the property temporarily, to demand compensation.

1866. A lessee who becomes aware of a serious defect or deterioration of the leased property is bound to inform the lessor within a reasonable time.

1867. Where a lessor fails to make the repairs or improvements he is bound to make under the lease or by law, the lessee may apply to the court for authorization to carry them out himself.

If the court grants authorization to make the repairs or improvements, it determines their amount and fixes the conditions to be observed in carrying them out. The lessee may then withhold from his rent the amount of the expenses incurred to carry out the authorized work, up to the amount fixed by the court.

1868. Where the lessee has attempted to inform the lessor, or has informed him but the lessor has not acted in due course, the lessee may undertake repairs or incur expenses, even without the authorization of the court, provided they are urgent and necessary to ensure the preservation or enjoyment of the leased property. The lessor may intervene at any time, however, to pursue the work.

The lessee is entitled to reimbursement of the reasonable expenses he incurred for that purpose; he may, if necessary, withhold the amount of such expenses from his rent.

1869. The lessee is bound to render an account to the lessor of the repairs or improvements made to the property and the expenses incurred and to deliver to him the vouchers for such expenses and, in the case of movable property, the replaced parts.

The lessor is bound to reimburse the lessee for any amount in excess of the rent withheld, but not in excess of the amount the lessee was authorized to disburse, where that is the case.

§ 3. —  Sublease of property and assignment of lease

1870. A lessee may sublease all or part of the leased property or assign his lease. In either case, he is bound to give notice of his intention and the name and address of the intended sublessee or assignee to the lessor and to obtain his consent.

1871. The lessor may not refuse to consent to the sublease of the property or the assignment of the lease without a serious reason.

If he refuses, he is bound to inform the lessee of his reasons for refusing within 15 days after receiving the notice; otherwise, he is deemed to have consented to the sublease or assignment.

1872. A lessor who consents to the sublease of the property or the assignment of the lease may not exact any payment other than the reimbursement of any reasonable expenses resulting from the sublease or assignment.

1873. The assignment of a lease acquits the former lessee of his obligations, unless, where the lease is not a lease of a dwelling, the parties agree otherwise.

1874. Where the lessor brings an action against the lessee, the sublessee may not be bound towards the lessor for any amount except the rent for the sublease which he owes to the lessee; the sublessee may not set up advance payments.

Payments made by the sublessee under a stipulation included in his lease and notified to the lessor, or in accordance with local usage are not considered to be advance payments.

1875. Where the nonperformance of an obligation by a sublessee causes serious damage to the lessor or the other lessees or occupants, the lessor may apply for the resiliation of the sublease.

1876. Where a lessor fails to perform his obligations, the sublessee may exercise the rights and remedies of the lessee to have them performed.

DIVISION III

TERMINATION OF THE LEASE

1877. A lease with a fixed term terminates of right upon expiry of the term. A lease with an indeterminate term terminates upon resiliation by one of the parties.

1878. A lease with a fixed term may be renewed. It may only be renewed expressly, but the lease of an immovable may be renewed tacitly.

1879. A lease is renewed tacitly where the lessee continues to occupy the premises for more than 10 days after the expiry of the lease without opposition from the lessor.

In that case, the lease is renewed for one year or for the term of the initial lease, if that was less than one year, on the same conditions. The renewed lease is also subject to renewal.

1880. The term of a lease may not exceed 100 years. If it exceeds 100 years, it is reduced to that term.

1881. Security given by a third person to secure the performance of the obligations of the lessee does not extend to a renewed lease.

1882. A party who intends to resiliate a lease with an indeterminate term shall give the other party notice to that effect.

The term of the notice is of the same duration as the term fixed for payment of the rent, but may not be of more than three months. Where the leased property is a movable, however, the notice is of 10 days, whatever the period fixed for payment of the rent may be.

1883. A lessee against whom proceedings for resiliation of a lease are brought for non-payment of the rent may avoid the resiliation by paying, before judgment, in addition to the rent due and costs, interest at the rate fixed in accordance with section 28 of the Act respecting the Ministère du Revenu or at any other lower rate agreed with the lessor.

1884. A lease is not resiliated by the death of either party.

1885. Where the lease of an immovable is for a fixed term, the lessee shall allow the premises to be visited and signs to be posted, for leasing purposes, during the three months preceding the expiry of the lease, or during the month preceding it if the lease is for less than one year.

Where the lease is for an indeterminate term, the lessee is bound to allow such activities from the date of the notice of resiliation.

1886. Voluntary or forced alienation of leased property or extinction of the lessor’s title for any other reason does not terminate the lease of right.

1887. The acquirer or the person who benefits from the extinction of title may resiliate the lease, if it is a lease with an indeterminate term, in accordance with the ordinary rules pertaining to resiliation contained in this section.

In the case of the lease of an immovable with a fixed term and if more than 12 months remain from the date of alienation or extinction of title, he may resiliate it upon expiry of the 12 months by giving the lessee written notice of six months. He may not resiliate the lease if it was registered in the registry office before the deed of alienation or the act by which the title is extinguished was so registered.

In the case of the lease of a movable with a fixed term, notice is of one month.

1888. The total expropriation of leased property terminates the lease from the date on which the expropriating party is allowed to take possession of the property in accordance with the Expropriation Act.

In the case of partial expropriation, the lessee may, according to the circumstances, obtain a reduction of rent or the resiliation of his lease.

1889. The lessor of an immovable may obtain the eviction of a lessee who continues to occupy the leased premises after the expiry of the lease or after the date for surrender of the premises agreed upon during the term of the lease; the lessor of a movable may, in the same circumstances, obtain the handing over of the property.

1890. Upon termination of the lease, the lessee is bound to surrender the property in the condition in which he received it but he is not liable for changes resulting from aging or fair wear and tear of the property or superior force.

The condition of the property may be established by the description made or the photographs taken by the parties; if it is not so established, the lessee is presumed to have received the property in good condition at the beginning of the lease.

1891. Upon termination of the lease, the lessee is bound to remove all the constructions, works or plantations he has made.

If they cannot be removed without deteriorating the property, the lessor may retain them by paying the value thereof to the lessee or compel the lessee to remove them and to restore the property to the condition in which it was when he received it.

If the property cannot be restored to its original condition, the lessor may retain the constructions, works or plantations without compensation.

DIVISION IV
SPECIAL RULES RESPECTING LEASES OF DWELLINGS

§ 1. —  Application

1892. The lease of a room, of a mobile home placed on a chassis, with or without a permanent foundation, or of land intended for the emplacement of a mobile home is deemed to be the lease of a dwelling.

The provisions of this section also govern leases relating to the services, accessories and dependencies attached to a dwelling, a room, a mobile home or land.

The provisions of this section do not apply to

(1) the lease of a dwelling leased as a vacation resort;

(2) the lease of a dwelling in which over one-third of the total floor area is used for purposes other than residential purposes;

(3) the lease of a room situated in a hotel establishment;

(4) the lease of a room situated in the principal residence of the lessor, if not more than two rooms are rented or offered for rent and if the room has neither a separate entrance from the outside nor sanitary facilities separate from those used by the lessor;

(5) the lease of a room situated in a health or social services institution, except pursuant to article 1974.

1893. A clause in a lease respecting a dwelling which is inconsistent with the provisions of this section, the second paragraph of article 1854 or articles 1856 to 1858, 1860 to 1863, 1865, 1866, 1868 to 1872, 1875, 1876 and 1883 is without effect.

§ 2. —  Lease

1894. Before entering into a lease, the lessor is bound to give the lessee, where applicable, a copy of the by-laws of the immovable which pertain to the rules respecting the enjoyment, use and maintenance of the dwelling and of the common premises.

The by-laws form part of the lease.

1895. Within 10 days after entering into the lease, the lessor is bound to give the lessee a copy of the lease or, in the case of an oral lease, a writing setting forth the name and address of the lessor, the name of the lessee, the rent and the address of the leased property, and containing the text of the particulars prescribed by the regulations of the Government. The writing forms part of the lease. The lease or writing shall be made on the form the use of which is made mandatory by the regulations of the Government.

Where the lease is renewed and the parties agree to modify it, the lessor is bound to give a writing evidencing the modifications to the initial lease to the lessee before the beginning of the renewal.

The lessee may not apply for resiliation of the lease on the ground that the lessor has failed to comply with these prescriptions.

1896. At the time of entering into a lease, the lessor shall give a notice to the new lessee, indicating the lowest rent paid in the 12 months preceding the beginning of the lease or the rent fixed by the court during the same period, as the case may be, and containing any other particular prescribed by the regulations of the Government.

The lessor is not bound to give the notice in the case of the lease of an immovable referred to in articles 1955 and 1956.

1897. The lease and the by-laws of the immovable shall be drawn up in French. They may, however, be drawn up in another language at the express wish of the parties.

1898. Every notice relating to a lease, except notice given by the lessor with a view to having access to the dwelling, shall be given in writing at the address indicated in the lease or, after the lease has been entered into, at the new address of the party, if the other party has been informed of it; the notice shall be drawn up in the same language as the lease and conform to the rules prescribed by regulation.

A notice that does not conform to the prescribed requirements may not be set up against the addressee unless the person who gave it proves to the court that the addressee has not suffered any damage as a consequence.

1899. A lessor may not refuse to enter into a lease with a person or to maintain the person in his or her rights, or impose more onerous conditions on the person for the sole reason that the person is pregnant or has one or several children, unless the refusal is warranted by the size of the dwelling; nor can he so act for the sole reason that the person has exercised his or her rights under this chapter or the Act respecting the Régie du logement.

Punitive damages may be awarded in cases where this provision is violated.

1900. A clause which limits the liability of the lessor or exempts him from liability or renders the lessee liable for damage caused without his fault is without effect.

A clause to modify the rights of a lessee by reason of an increase in the number of occupants, unless the size of the dwelling warrants it, or to limit the right of a lessee to purchase property or obtain services from such persons as he chooses, and on such terms and conditions as he sees fit, is also without effect.

1901. A clause stipulating a penalty in an amount exceeding the value of the damage actually suffered by the lessor, or imposing an obligation on the lessee which is unreasonable in the circumstances, is an abusive clause.

Such a clause is null or any obligation arising from it may be reduced.

1902. Neither the lessor nor any other person may harass a lessee in such a manner as to limit his right to peaceable enjoyment of the premises or to induce him to leave the dwelling.

A lessee who suffers harassment may demand that the lessor or any other person who has harassed him be condemned to pay punitive damages.

§ 3. —  Rent

1903. The rent agreed upon shall be indicated in the lease.

It is payable in equal instalments, except the last, which may be less; it is payable on the first day of each payment period, unless otherwise agreed.

1904. The lessor may not exact any instalment in excess of one month’s rent; he may not exact payment of rent in advance for more than the first payment period or, if that period exceeds one month, payment of more than one month’s rent.

Nor may he exact any amount of money other than the rent, in the form of a deposit or otherwise, or demand that payment be made by postdated cheque or any other postdated instrument.

1905. A clause in a lease stipulating that the full amount of the rent will be exigible in the event of the failure by the lessee to pay an instalment is without effect.

1906. A clause in a lease with a fixed term of 12 months or less providing for an adjustment of the rent during the term of the lease is without effect.

A clause in a lease with a term of more than 12 months providing for an adjustment of the rent during the first 12 months of the lease or more than once during each 12 month period is also without effect.

1907. Where the lessor fails to perform his obligations, the lessee may apply to the court for authorization to perform them himself. The parties are then subject to the provisions of articles 1867 and 1869.

The lessee may also deposit his rent in the office of the court, if he gives the lessor prior notice of 10 days indicating the grounds for depositing it and if the court, considering that the grounds are serious, authorizes the deposit and fixes the amount and conditions of the deposit.

1908. Where, following the alienation of an immovable, the registration of a hypothec against the rent or an assignment of claim, the lessee is not personally informed of the name and address of the new lessor or of the person to whom he owes payment of the rent, he may, with the authorization of the court, deposit his rent in the office of the court.

Deposit may also be authorized where, for any other serious reason, the lessee is not certain of the identity of the person to whom he owes payment of the rent, where the lessor cannot be found or where he refuses payment of the rent.

1909. The court authorizes the remittance of the deposit where the person to whom the lessee owes payment of the rent is identified or has been found or where the lessor performs his obligations; otherwise, it may permit the lessee to continue to deposit his rent until the identification is made or until the lessor performs his obligations. The court may also authorize the remittance of the deposit to the lessee to enable him to perform the obligations of the lessor.

§ 4. —  Condition of dwelling

1910. A lessor is bound to deliver a dwelling in good habitable condition; he is bound to maintain it in that condition throughout the term of the lease.

A stipulation whereby a lessee acknowledges that the dwelling is in good habitable condition is without effect.

1911. The lessor is bound to deliver the dwelling in clean condition and the lessee is bound to keep it so.

Where the lessor carries out work in the dwelling, he shall restore it to clean condition.

1912. The following give rise to the same remedies as failure to perform an obligation under the lease:

(1) failure on the part of the lessor or the lessee to comply with an obligation imposed by law with respect to the safety and sanitation of dwellings;

(2) failure on the part of the lessor to comply with the minimum requirements fixed by law with respect to the maintenance, habitability, safety and sanitation of immovables comprising a dwelling.

1913. The lessor may not offer for rent or deliver a dwelling that is unfit for habitation.

A dwelling is unfit for habitation if it is in such a condition as to be a serious danger to the health or safety of its occupants or the public, or if it has been declared so by the court or by a competent authority.

1914. A lessee may refuse to take possession of a dwelling delivered to him if it is unfit for habitation; in such a case, the lease is resiliated of right.

1915. A lessee may abandon his dwelling if it becomes unfit for habitation, but he is bound to inform the lessor of the condition of the dwelling before abandoning it or within the following 10 days.

A lessee who gives such a notice to the lessor is exempt from rent for the period during which the dwelling is unfit for habitation, unless the condition of the dwelling is the result of his own fault.

1916. As soon as the dwelling becomes fit for habitation again, the lessor is bound to inform the lessee, if the lessee has given him his new address; the lessee is then bound to notify the lessor within the following 10 days as to whether or not he intends to return to the dwelling.

Where the lessee has not given the lessor his new address or fails to notify him that he intends to return to the dwelling, the lease is resiliated of right and the lessor may enter into a lease with a new lessee.

1917. The court, when seised of any dispute in connection with a lease, may, even of its own motion, declare that the dwelling is unfit for habitation; it may then rule on the rent, fix the conditions necessary for the protection of the rights of the lessee and, where applicable, order that the dwelling be made fit for habitation again.

1918. The lessee may apply to the court for an order enjoining the lessor to perform his obligations regarding the condition of the dwelling, where their nonperformance threatens to make the dwelling unfit for habitation.

1919. The lessee may not, without the consent of the lessor, use or keep in a dwelling a substance which constitutes a risk of fire or explosion and which would lead to an increase in the insurance premiums of the lessor.

1920. The occupants of a dwelling shall be of such a number as to allow each of them to live in normal conditions of comfort and sanitation.

1921. Where a handicapped person significantly limited in his movements occupies a dwelling, whether or not that person is the lessee, the lessor is bound, at the demand of the lessee, to identify the dwelling in accordance with the Act to secure handicapped persons in the exercise of their rights with a view to achieving social, school and workplace integration.

§ 5. —  Certain changes to dwelling

1922. No major improvements or repairs other than urgent improvements or repairs may be made in a dwelling without prior notice from the lessor to the lessee nor, if it is necessary for the lessee to vacate temporarily, until the lessor has offered an indemnity to him equal to the reasonable expenses he will have to incur by reason of the vacancy.

1923. The notice given to the lessee indicates the nature of the work, the date on which it is to begin and an estimation of its duration and, where required, the necessary period of vacancy; it also specifies the amount of the indemnity offered, where applicable, and any other conditions under which the work will be carried out, if it is of such a nature as to cause a substantial reduction of the enjoyment of the premises.

The notice shall be given at least 10 days before the date on which the work is to begin or, if a period of vacancy of more than one week is necessary, at least three months before that date.

1924. The indemnity due to a lessee by reason of temporary vacancy is payable on the date he vacates.

If the indemnity proves inadequate, the lessee may be reimbursed for any reasonable expenses incurred beyond the amount of the indemnity.

The lessee may also, depending on the circumstances, obtain a reduction of rent or resiliation of the lease.

1925. If the notice of the lessor provides for temporary vacancy, the lessee shall notify the lessor within 10 days after receiving it that he intends or does not intend to comply with it; otherwise, he is deemed to have refused to vacate the premises.

If the lessee refuses to vacate, the lessor may apply to the court within 10 days after the refusal for a ruling on the expediency of the vacancy.

1926. Where temporary vacancy is not required or the lessee agrees to vacate, the lessee, within 10 days after receiving the notice, may apply to the court for the modification or suppression of any abusive condition.

1927. The application of the lessor or of the lessee is heard and decided by preference. It suspends the carrying out of the work unless the court orders otherwise.

The court may impose such conditions as it considers just and reasonable.

1928. Where the court is adjudicating upon an application respecting the conditions under which work is to be carried out, it is for the lessor to show that such work and conditions are reasonable and that the vacancy is necessary.

1929. No notice is required and no contestation is allowed where the alterations made have been the subject of an agreement between the lessor and the lessee within the scope of a public housing preservation and restoration program.

§ 6. —  Access to and visit of dwelling

1930. Where a lessee gives notice of non-renewal or resiliation of the lease to the lessor, he is bound to allow the dwelling to be visited and signs to be posted from the time he gives the notice.

1931. The lessor is bound, except in case of emergency, to give the lessee a prior notice of 24 hours of his intention to ascertain the condition of the dwelling, to carry out work in the dwelling or to have it visited by a prospective acquirer.

1932. The lessee may, except in case of emergency, refuse to allow the dwelling to be visited by a prospective lessee or acquirer before 9 a.m. or after 9 p.m.; the same rule applies where the lessor wishes to ascertain the condition of the dwelling.

The lessee may, in any case, refuse to allow the dwelling to be visited if the lessor is unable to be present.

1933. The lessee may not refuse to allow the lessor to have access to the dwelling to carry out work.

He may deny him access before 7 a.m. and after 7 p.m., however, unless the work is urgent.

1934. No lock or other device restricting access to a dwelling may be installed or changed without the consent of the lessor and the lessee.

If either party fails to comply with his obligation, the court may order him to allow the other party to have access to the dwelling.

1935. The lessor may not prohibit a candidate in a provincial, federal, municipal or school election, an official delegate appointed by a national committee or the authorized representative of either from having access to the immovable or dwelling for the purposes of an election campaign or a legally constituted referendum.

§ 7. —  Right to maintain occupancy

I. —  Holders of the right

1936. Every lessee has a personal right to maintain occupancy; he may not be evicted from the leased dwelling, except in the cases provided for by law.

1937. The voluntary or forced alienation of an immovable comprising a dwelling or the extinction of the title of the lessor does not permit the new lessor to resiliate the lease, which is continued and may be renewed in the same manner as any other lease.

The new lessor has, towards the lessee, the rights and obligations resulting from the lease.

1938. The married or civil union spouse of a lessee, or a person who has been living with the lessee for at least six months, being the de facto spouse or blood relative of the lessee or a person connected to the lessee by marriage or a civil union, is entitled to maintain occupancy if he or she continues to occupy the dwelling after the cessation of cohabitation and gives notice to that effect to the lessor within two months after the cessation of cohabitation. He or she becomes the lessee from that moment.

A person living with the lessee at the time of death of the lessee has the same right and becomes the lessee if he or she continues to occupy the dwelling and gives notice to that effect to the lessor within two months after the death. If the person does not avail himself or herself of this right, the liquidator of the succession or, failing him or her, an heir may, in the month which follows the expiry of the period of two months, resiliate the lease by giving notice of one month to that effect to the lessor.

1939. If no one is living with the lessee at the time of his death, the liquidator of the succession or, failing him, an heir may resiliate the lease by giving notice of three months to the lessor within six months after the death.

1940. The sublessee of a dwelling is not entitled to maintain occupancy.

The sublease terminates not later than the date on which the lease of the dwelling terminates; however, the sublessee is not required to vacate the premises before receiving notice of 10 days to that effect from the sublessor or, failing him, from the principal lessor.

II. —  Renewal and modification of lease

1941. A lessee entitled to maintain occupancy and having a lease with a fixed term is entitled of right to its renewal at term.

The lease is renewed at term on the same conditions and for the same term or, if the term of the initial lease exceeds 12 months, for a term of 12 months. The parties may, however, agree on a different renewal term.

1942. At the renewal of the lease, the lessor may modify its conditions, particularly the term or the rent, but only if he gives notice of the modification to the lessee not less than three months nor more than six months before term. If the term of the lease is less than 12 months, the notice shall be given not less than one month nor more than two months before term.

A lessor may not modify a lease with an indeterminate term unless he gives the lessee a notice of not less than one month nor more than two months.

The notice is of not less than 10 days nor more than 20 days in the case of the lease of a room.

1943. In every notice of modification with a view to an increase of the rent an indication shall be made of the new proposed rent in dollars or the increase expressed in dollars or as a percentage of the rent in force. The increase may be expressed as a percentage of the rent to be determined by the court, where an application for the fixing or review of the rent has been filed.

Where the lessor proposes to modify the term of the lease, the proposed term shall also be indicated in the notice, and the time granted to the lessee to refuse the proposed modification.

1944. The lessor may avoid the renewal of the lease where the lessee has subleased the dwelling for more than 12 months by giving notice, within the same time as for modification of the lease, of his intention to terminate it to the lessee and to the sublessee.

The lessor may similarly avoid the renewal of the lease where the lessee has died and no one was living with him at the time of the death, by giving the notice to the heir or to the liquidator of the succession.

1945. A lessee who objects to the modification proposed by the lessor is bound to notify the lessor, within one month after receiving the notice of modification of the lease, that he objects or that he is vacating the dwelling; otherwise, he is deemed to have agreed to the renewal of the lease on the conditions proposed by the lessor.

In the case of a lease of a dwelling described in article 1955, however, the lessee shall vacate the dwelling upon termination of the lease if he objects to the proposed modification.

1946. A lessee who has not received a notice of modification of the conditions of the lease from the lessor may avoid the renewal of a lease with a fixed term or terminate a lease with an indeterminate term by giving notice of non-renewal or resiliation of the lease to the lessor, within the same time as a lessor giving notice of modification.

III. —  Fixing conditions of lease

1947. Where a lessee objects to the proposed modification, the lessor may apply to the court, within one month after receiving the notice of objection, for the fixing of the rent or for a ruling on any other modification of the lease, as the case may be; otherwise, the lease is renewed of right on the same conditions.

1948. A lessee who has subleased his dwelling for more than 12 months, or an heir or the liquidator of the succession of a lessee who has died may, within one month after receiving notice of the intention of the lessor to avoid the renewal of the lease, contest the notice on its merits before the court; otherwise, he is deemed to have agreed to terminate the lease.

Where the court grants the application of the lessee after the expiry of the time for giving notice of modification of the lease, the lease is renewed but the lessor may, within one month after the final judgment, apply to the court for the fixing of a new rent.

1949. Where the lease provides for the adjustment of the rent, the parties may apply to the court to contest the excessive or inadequate nature of the proposed or agreed adjustment and for the fixing of the rent.

The application shall be made within one month from the date on which the adjustment is to take effect.

1950. A new lessee or a sublessee may apply to the court for the fixing of the rent if his rent is higher than the lowest rent paid during the 12 months preceding the beginning of the lease or sublease, as the case may be, unless that rent has already been fixed by the court.

He may apply only within 10 days after the lease or sublease has been entered into. If at the time the lease or sublease is entered into he has not received the notice from the lessor indicating the lowest rent paid in the preceding year, he may apply no later than two months after the beginning of the lease or sublease; where the lessor has given a notice containing a false statement, the new lessee or sublessee may apply no later than two months after becoming aware of that fact.

1951. A person entitled by law to maintain occupancy and to become lessee upon the cessation of cohabitation with the lessee or the death of the lessee is not considered to be a new lessee.

1952. Where the court authorizes the modification of a condition of a lease, it fixes the rent payable for the dwelling, taking into consideration the relative value of the modification in relation to the rent for the dwelling.

1953. Where the court has an application before it for the fixing or adjustment of rent, it takes into consideration the standards prescribed by regulation.

The rent fixed by the court is in force for the term of the renewed lease or for such term, not in excess of 12 months, as it determines.

If the court grants an increase of rent, it may spread the payment of the arrears over a period not exceeding the term of the renewed lease.

1954. Where the court fixes the rent on the application of a new lessee, it does so for the term of the lease.

Where the term of the lease exceeds 12 months, the lessor may nevertheless have the rent fixed annually. The application may be made no later than three months before the expiry of each period of 12 months from the date on which the fixed rent took effect.

1955. Neither the lessor nor the lessee of a dwelling leased by a housing cooperative to one of its members may apply to the court for the fixing of the rent or the modification of any other condition of the lease.

Nor may the lessor or the lessee of a dwelling situated in a recently erected immovable or an immovable used for renting as a result of a recent change of destination pursue the remedy referred to in the first paragraph within five years after the date on which the immovable is ready for its intended use.

Such restrictions shall be mentioned, however, in the lease of such a dwelling; if they are not mentioned, they may not be set up by the lessor against the lessee.

1956. The lessor or lessee of a dwelling in low-rental housing may not apply for the fixing of the rent or for the modification of any other condition of the lease except in accordance with the provisions specific to that type of lease.

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 divide the dwelling, enlarge it substantially or change its destination.

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.

Repossession or eviction may take effect on a later date, however, upon the application of the lessee and with the authorization of the court.

1962. Within one month after receiving notice of repossession, 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 refuse to vacate the dwelling.

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

Application for authorization may be made only within one month after the refusal by the lessee; the lessor shall show the court that he truly intends to repossess the dwelling for the purpose mentioned in the notice and not as a pretext for other purposes.

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 an indemnity equal to three months’ rent and reasonable moving expenses to the evicted lessee. If the lessee considers that the prejudice he sustains warrants a greater amount of damages, he may apply to the court for the fixing of the amount of the indemnity.

The indemnity is payable at the expiry of the lease; the moving expenses are payable on presentation of vouchers.

1966. Within one month after receiving the notice of eviction, the lessee may apply to the court to object to the division, enlargement or change of destination of the dwelling; otherwise, he is deemed to have consented to vacate the premises.

Where an objection is brought, the burden is on the lessor to show that he truly intends to divide, enlarge or change the destination of the dwelling and that he is permitted to do so by law.

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 in bad faith, whether or not he has consented to it.

He may also apply for punitive damages against the person who has repossessed the dwelling or evicted him in bad faith.

1969. Where the lessor does not exercise his right of repossession or eviction on the fixed date, the lease is renewed of right 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 for the fixing of a new rent.

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.

§ 8. —  Resiliation of lease

1971. The lessor may obtain the resiliation of the lease if the lessee is over three weeks late in paying the rent or, if he suffers serious prejudice as a result, where the lessee is frequently late in paying it.

1972. The lessor or the lessee may apply for the resiliation of the lease if the dwelling becomes unfit for habitation.

1973. Where either of the parties applies for the resiliation of the lease, the court may grant it immediately or order the debtor to perform his obligations within the period it determines, except where payment of the rent is over three weeks late.

Where the debtor does not comply with the decision of the court, the court resiliates the lease on the application of the creditor.

1974. A lessee may resiliate the current lease if he is allocated a dwelling in low-rental housing or if, by reason of a decision of the court, he is relocated in an equivalent dwelling corresponding to his needs; he may also resiliate the current lease if he can no longer occupy his dwelling because of a handicap or, in the case of an elderly person, if he is admitted permanently to a residential and long-term care centre or to a foster home, whether or not he resides in such a place at the time of his admission.

Unless otherwise agreed by the parties, resiliation takes effect three months after the sending of a notice to the lessor, with an attestation from the authority concerned, or one month after the notice if the lease is for an indeterminate term or a term of less than 12 months.

1974.1. A lessee may resiliate the current lease if, because of the violent behaviour of a spouse or former spouse or because of a sexual aggression, even by a third party, the safety of the lessee or of a child living with the lessee is threatened.

The resiliation takes effect three months after the sending of a notice to the lessor or one month after the notice if the lease is for an indeterminate term or a term of less than 12 months, or before the end of that period if the dwelling is re-leased or the parties agree otherwise.

The notice must be sent with an attestation from a public servant or public officer designated by the Minister of Justice, who, on examining the lessee’s sworn statement that there exists a situation involving violence or sexual aggression, and other factual elements or documents supporting the lessee’s statement provided by persons in contact with the victims, considers that the resiliation of the lease is a measure that will ensure the safety of the lessee or of a child living with the lessee. The public servant or public officer must act promptly.

1975. The lease is resiliated of right where a lessee abandons the dwelling without any reason, taking his movable effects with him; it may also be resiliated without further reason, where the dwelling is unfit for habitation and the lessee abandons it without notifying the lessor.

1976. An employer may, where an employee ceases to be in his employ, resiliate a lease that is accessory to the contract of employment by giving the employee prior notice of one month, unless otherwise stipulated in the contract.

An employee may resiliate such a lease upon the termination of the contract of employment by giving prior notice of one month to his employer, unless otherwise stipulated in the contract.

1977. The lease is renewed of right where the court refuses an application for resiliation thereof 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.

1978. The lessee, on resiliation of the lease or when he vacates the dwelling, shall leave it free of all movable effects except those which belong to the lessor. If the lessee leaves movable effects at the end of the lease or after abandoning the dwelling, the lessor may dispose of them in accordance with the rules prescribed in the Book on Property which apply to the holder of property entrusted and forgotten.

§ 9. —  Special provisions respecting certain leases

I. —  Lease with an educational institution

1979. Every person pursuing studies who leases a dwelling from an educational institution is entitled to maintain occupancy for any period during which he is enrolled in the institution as a full-time student, but is not so entitled if he leases a dwelling from an institution other than the one in which he is enrolled.

A person having a lease for the summer period only is not entitled to maintain occupancy.

1980. A person pursuing studies who wishes to avail himself of the right to maintain occupancy shall give notice of one month before the expiry of the lease that he intends to renew it.

The educational institution may, however, for serious reasons, relocate the person in a dwelling of the same type as that which he occupies, situated in the same neighbourhood and at equivalent rent.

1981. A person pursuing studies may not sublease the dwelling or assign his lease.

1982. The educational institution may resiliate the lease of a person who ceases to be a full-time student. It shall give him prior notice of one month, which may be contested, on its merits, within one month after it is received. The person pursuing studies may, similarly, resiliate the lease.

1983. The lease of a person pursuing studies is resiliated of right when he ends his studies or ceases to be enrolled in the educational institution.

II. —  Lease of a dwelling in low-rental housing

1984. A dwelling situated in low-rental housing owned or administered by the Société d’habitation du Québec or by a legal person whose operating expenses are met, in whole or in part, by a subsidy from the Société d’habitation du Québec, or a dwelling which is not so situated but whose rent is fixed by by-law of the Société d’habitation du Québec is a dwelling in low-rental housing.

A dwelling for which the Société d’habitation du Québec agrees to pay an amount toward the rent is also a dwelling in low-rental housing but, in this case, the provisions pertaining to the register of lease applications and to the eligible list do not apply where the lessee is selected by an association that is a legal person constituted for that purpose under the Act respecting the Société d’habitation du Québec.

1985. The lessor of a dwelling in low-rental housing shall keep an up-to-date register of lease applications and an eligible list for the lease of a dwelling, in accordance with the by-laws of the Société d’habitation du Québec and with any by-law made by the lessor himself as authorized by and pursuant to the by-laws of the Société d’habitation du Québec.

Where a dwelling is vacant, the lessor shall offer it to a person entered on the eligible list according to the conditions prescribed in the by-laws.

1986. If a lessor refuses to enter the application of a person in the register or to enter his name on the eligible list, the person may apply to the court within one month after the refusal for a review of the decision.

A person whose name is removed from the list or entered on the list for a dwelling of a category or subcategory other than that to which he is entitled may also, within one month after the decision, apply to the court to have the decision of the lessor revised.

In such cases, the lessor has the burden of establishing that he acted within the conditions prescribed in the by-laws. The court may, as the case may be, order the application entered in the register or the name of the person entered, re-entered or reclassified on the eligible list.

1987. If the lessor assigns a dwelling to a person other than the person entitled to it under the by-laws, the person entitled to the dwelling may apply to the court within one month thereafter for a review of the decision.

The lessor has the burden of establishing that he acted within the conditions prescribed in the by-laws; if he fails to do so, the court may order him to house the person in a dwelling of the category to which he is entitled or, if none is vacant, to assign him the next dwelling of that category that becomes vacant. The court may also, in case of emergency, order the lessor to house him in an equivalent dwelling, whether in low-rental housing or not, corresponding to the category of dwelling to which he is entitled. If the rent for that dwelling is higher than the rent the person would have paid for the dwelling he is entitled to, the lessor is bound to pay the excess amount.

1988. Where a dwelling in low-rental housing is assigned following a false statement of the lessee, the lessor may, within two months after becoming aware of the false statement, apply to the court for the resiliation of the lease or the modification of certain conditions of the lease if, were it not for the false statement, he would not have assigned the dwelling to the lessee or would have done so on different conditions.

1989. A lessee who occupies a dwelling of a category other than that to which he is entitled may apply to the lessor to have his name re-entered on the eligible list.

If the lessor refuses to re-enter the lessee’s name or enters it on the list for a category of dwelling other than that to which he is entitled, the lessee may apply to the court to contest his decision within one month after receiving notice of the refusal or the assignment of the dwelling.

1990. The lessor may, at any time, relocate a lessee who occupies a dwelling of a category other than that to which he is entitled in a dwelling of the appropriate category or subcategory on giving him three months’ notice.

The lessee may apply to the court for review of the decision within one month after receiving the notice.

1991. If a person who benefits from the right to maintain occupancy ceases to cohabit with the lessee or if the lessee dies, that person is not entitled to renewal of the lease of right if he no longer meets the conditions of allocation prescribed in the by-laws.

The lessor may, in such a case, resiliate the lease by giving the person three months’ notice before termination of the lease.

1992. A lessor who notifies the lessee of his intention to increase the rent is not bound to indicate the new rent or the amount of the increase, and the lessee is not bound to respond to such a notice.

However, if the rent is not fixed in accordance with the by-laws of the Société d’habitation du Québec, the lessee may apply to the court, within two months after the fixing of the rent, for its review.

1993. A lessee, within one month after receiving notice of modification of the term or of another condition of the lease, may apply to the court for a ruling on the requested term or modification; otherwise, he is deemed to consent to the new conditions.

A person who benefits from the right to maintain occupancy and who receives a notice of resiliation of the lease may, similarly, contest the resiliation on its merits before the court; otherwise, he is deemed to have agreed to it.

1994. The lessor, at the request of a lessee who has suffered a reduction of income or a change in the composition of his household, is bound to reduce his rent during the term of the lease in accordance with the by-laws of the Société d’habitation du Québec; if he refuses or neglects to do so, the lessee may apply to the court for the reduction.

If the income of the lessee returns to or becomes greater than what it was, the former rent is re-established; the lessee may contest the re-establishment of the rent within one month after it is re-established.

1995. The lessee of a dwelling in low-rental housing may not sublease the dwelling or assign his lease.

He may resiliate the lease at any time by giving three months’ notice to the lessor.

III. —  Lease of land intended for the installation of a mobile home

1996. The lessor of land intended for the installation of a mobile home is bound to deliver the land and maintain it in accordance with the development standards prescribed by law. These obligations form part of the lease.

1997. No lessor may require that he, the lessor, remove the mobile home of the lessee.

1998. The lessor may not limit the right of the lessee of the land to replace his mobile home by another mobile home of his choice.

The lessor may not limit the right of the lessee to alienate or lease his mobile home; nor may he require that he, the lessor, act as the mandatary or that he select the person to act as the mandatary of the lessee for the alienation or lease of the mobile home.

A lessee who alienates his mobile home shall, however, notify the lessor of the land immediately.

1999. The lessor may not require any amount of money from the lessee by reason of the alienation or lease of the mobile home, unless he acts as the mandatary of the lessee for alienation or lease.

2000. The acquirer of a mobile home situated on leased land becomes the lessee of the land unless he notifies the lessor of his intention to leave the premises within one month after the acquisition.

Last Updated on Friday, 11 June 2010 07:56

 

Me Sébastien Fiset
Me Sébastien Fiset
https://fisetlegal.com