N11 AGREEMENT TO TERMINATE TENANCY WITH AN N12 NOTICE OF TERMINATION: WHAT DO YOU NEED TO KNOW AS A LANDLORD OR AS A TENANT?
Inflation and rising interest rates have caused problems for landlords and tenants alike! A landlord can’t raise rents enough to cover the rising costs of ownership, and tenants can’t afford sharp increases in rent from either illegal rent increases, rent increases exempt from rent control, and finding a new home with an affordable rent rate!
When the landlord can’t raise the rent high enough to cover the costs of ownership, they feel pressure to either ask the tenant to agree to an above guideline increase, or, ask the tenant to terminate so they can sell, or find a new tenant at market rate.
It is perfectly reasonable for a landlord to ask a tenant to agree to terminate and sign an N11 – Agreement to End the Tenancy. There could be future problems that a landlord could cause themselves if they ask for the tenant to sign an N11 and later sell the property, or re-rent the property for a higher monthly rent rate.
It is important that either as a landlord, or as a tenant, you understand the significance of the N11 agreement, and the possible consequences as either a landlord or a tenant if the agreement is not formulated properly.
Often, the landlord should serve the N12 – Notice of Termination for Owner’s Use / for Purchaser’s Own Use instead of asking for the tenant to sign the N11. It is important that when the landlord is contemplating how they take back possession of their unit that they plan and strategize the use of the N12 and N11 in advance to ensure they follow the mandatory conditions of the use of these forms to obtain vacant possession of their unit, or risk significant exposure and risk to liability to the tenant for thousands of dollars in damages, and possible fines being imposed by the Landlord and Tenant Board.
If you are facing any such issues, you can get in touch with us at SW Legal Service PC. We offer the best paralegal Toronto services especially on the matter of landlord and tenant disputes.
Contact us now to know more.
