UPDATE – Bill 16, Legislation to Restrict Use of Fixed Term Tenancies with A Vacate Clause
The proposed legislation has passed 3rd Reading and the Minister is currently considering narrow exceptions that will be permitted through Regulation. We can provide the following information in the interim. Our members will receive detailed updates as they occur via our e-newsletter. Non-members are welcome to monitor our website/blog for further information.
- Sublets – We’ve had questions in regard to sublets and whether or not current fixed terms with the vacate clause will simply become month to month tenancies once the legislation comes into effect. They do not. In regard to sublets, the changes to the legislation regarding fixed terms does not invalidate or change the fixed term to a month to month but rather removes the “must vacate” aspect. The fixed term as it pertains to the landlord and tenant’s commitment to a minimum length of residency is not nullified by this amendment and all rights and responsibilities still apply. This included the tenants right to sublet or assign a fixed term with 6 month or more remaining. This is a positive measure and provides additional certainty for landlords. Sublet remains subject to written consent of landlord.
- The legislation will be implemented “retrospectively” meaning that existing fixed term tenancies with a vacate clause will in effect be unenforceable and revert to a month-to-month at the end of the term. There are two situations involving existing fixed-term tenancy agreements where a vacate clause can still be enforced, if before the day this Act receives First Reading in the Legislative Assembly (October 26):
- A landlord, expecting their tenant to move out at the end of the term, has already entered into a tenancy agreement with a new tenant; and
- A landlord was granted an order of possession requiring a tenant to vacate the unit, but the possession order has not yet taken effect.