Rental Property Conversion Act

Short title

1 This Act may be cited as the Rental Property Conversion Act. R.S., c. 399, s. 1.

Interpretation

2 In this Act,

(a) "Director" means the Director of Landlord and Tenant Relations in the Department of Consumer Affairs;

(b) "property" means any building, mobile home, mobile-home park, mobile-home space or other place, or part thereof, that is occupied or may be occupied by an individual as a residence or that part of any such place that is or may be occupied by an individual as a residence;

(c) "property other than rental property" includes rental property where the tenant is required to hold membership in a corporation owning, directly or indirectly, the rental property;

(d) "rental property" means property which is rented, is available for rent or was rented when last occupied;

(e) "unit" means a unit of rental property. R.S., c. 399, s. 2.

Application of Act

3 This Act applies only to rental property in which there are four or more units in one building or on one lot and in either case owned by the same person. R.S., c. 399, s. 3.

Restriction on conversion of rental property

4 (1) No person shall convert rental property to property other than rental property unless and until

(a) notice of the proposed conversion is given to the Director; and

(b) at least three months written notice of the proposed conversion is personally served or served by registered mail upon each tenant occupying the rental property at the time the notice is given.

Content of notice

(2) The notice referred to in clause (b) of subsection (1) shall

(a) give the date of the proposed conversion;

(b) offer the tenant an extension of his tenancy for at least twelve months beyond the date of the proposed conversion set out in the notice, where the tenancy would otherwise have terminated prior to that date; and

(c) offer to the tenant an option exercisable within thirty days immediately following the date of the proposed conversion

(i) where the conversion is to a condominium, to enter into an agreement to purchase, or

(ii) in any other case, to enter into an agreement to purchase the right to occupy the unit which the tenant occupies upon terms and conditions not less favourable than the terms offered or to be offered to the public.

Clause (2)(c) does not apply

(3) Clause (c) of subsection (2) does not apply where

(a) the units or right to occupy units is not being offered for sale; or

(b) the tenant vacates the rental property he occupies.

Successor rights

(4) Where a tenant vacates the rental property he occupies and a new tenant occupies the rental property prior to the date of the proposed conversion, clause (c) of subsection (2) shall apply, subject to subsection (3). R.S., c. 399, s. 4.

No eviction for purpose of circumventing Act

5 No person shall evict a tenant for the purpose of circumventing any provision of this Act. R.S., c. 399, s. 5.

Offence and penalty

6 (1) Every person who violates or fails to comply with any provision of this Act or the regulations is guilty of an offence and liable on summary conviction to a penalty of not more than five thousand dollars or to imprisonment for a term of not more than six months or both.

Penalty for corporation

(2) Where a corporation is convicted of an offence under subsection (1) it is liable to a penalty of not more than twenty-five thousand dollars. R.S., c. 399, s. 6.

Certificate as prima facie proof

7 A certificate under the hand of the Director stating that a statutory declaration has not been filed with him is without proof of the office or signature of the Director admissible in evidence as prima facie proof of the facts stated in the certificate for all purposes in any court. R.S., c. 399, s. 7.

Affidavit as proof in respect of title

8 An affidavit of the person converting rental property

(a) verifying that he has served the notices required by this Act in accordance with this Act accompanied by a certificate of the Director that a statutory declaration relating to the rental property has been filed with him; and

(b) registered in the registry of deeds for the registration district in which the rental property is located,

is and is deemed to be in respect of title sufficient proof that all of the requirements of this Act have been met. R.S., c. 399, s. 8.

Regulations

9 (1) Notwithstanding anything contained in this Act, the Governor in Council may, where he considers it to be in the best interest of the Province because of the degree of availability of rental property in the Province or because of such circumstances as he considers relevant, make regulations

(a) prescribing conditions prerequisite to;

or

(b) prohibit,

the conversion of rental property to property other than rental property.

Application of regulations

(2) Regulations made by the Governor in Council pursuant to subsection (1) may be general or specific, apply to the whole of the Province or one or more areas thereof or apply to one or more classes of rental property.

Regulations Act

(3) The exercise of the authority contained in this Section by the Governor in Council shall be regulations within the meaning of the Regulations Act. R.S., c. 399, s. 9.