Have your plans changed and you want to move out of your home before the end of your lease? Lease assignment is the solution for you! Filling out a lease assignment notice can allow you to leave your apartment without having to continue paying the monthly rent.
Indeed, by assigning your lease to another interested person, you can transfer the responsibilities of the rental contract, including monthly payments, to this person. Lease assignment can be a convenient alternative if you wish to settle elsewhere earlier than planned, while respecting the terms of your current lease.
What is a lease assignment?
In Quebec, a lease assignment is a legal procedure that allows a tenant, "the assignor," to transfer the rights and obligations of his lease to another person, "the assignee." This means that the assignor leaves the housing before the end of his lease and delegates his contractual responsibilities, such as the payment of rent and compliance with the lease terms, to the assignee.
The lease assignment is often used when the tenant wishes to move before the end of his lease and thus avoid the financial penalties associated with a lease termination!
A lease assignment has certain conditions and limits:
The tenant must notify the landlord
Indeed, the tenant wanting to assign his lease must necessarily inform the landlord of his intention to assign his lease. Indeed, the tenant must send a lease assignment notice indicating to the landlord the name and address of the person to whom he intends to assign the lease.
It is important to mention that the law requires the tenant to give only the name and address of the assignee, he is not responsible for collecting additional information on the latter. It is then up to the landlord to undertake the necessary steps to collect the relevant information on the assignee*.*
The lease assignment has three exceptions
A lease assignment cannot take place if :
- The tenant is studying and rents a dwelling in an educational institution (residences).
- It is a low-rent housing (social housing intended for low-income people).
- The housing is a family residence and the landlord has been notified of the lease assignment by only one of the spouses.
The landlord can refuse the lease assignment for a serious reason
Unfortunately, to carry out a lease assignment, the tenant must obtain the landlord's consent to the lease assignment. It should be noted that the owner cannot refuse to consent to the lease assignment without a serious reason.
The serious reasons for a landlord's refusal must be based on the assignee's ability to pay, his insolvency or his failure to comply with the obligations resulting from the lease.
Here are serious reasons that have been deemed sufficient or insufficient by Quebec courts:
| Sufficient Serious Grounds | Insufficient Serious Grounds |
|---|---|
| Financial Problems: The landlord refuses the lease assignment because the assignee candidate has 3 bankruptcies on his record. In this decision, the court ruled that the three bankruptcies are a serious reason justifying the landlord's refusal. | Renovations: The landlord refuses the lease assignment because he prefers to terminate the lease in order to carry out renovations on the property. The court states that renovations are not a serious reason for refusal. |
| Insufficient income for rent cost: The landlord refuses the lease assignment because the assignee candidate is on social assistance and the rent is $2000/month. | Recovery of housing by the landlord: The landlady refused the lease assignment because she prefers to terminate the lease in order to take back the apartment for her son to live in. The court states that taking back the apartment for her son to live in is not a serious reason justifying the refusal. Furthermore, the court states that the reasons for refusing a lease assignment should only be based on the assignee candidate. |
| Unfavorable financial background: The landlord refuses the lease assignment because the assignee candidate is unemployed, has a bad credit rating, has several late payments, and has accumulated debts. | No rental reference: The landlord refuses the assignee candidate because she has never had a lease in her name and therefore has no rental references. The court states that this is not a serious reason justifying the refusal. |
| Bad rental reference: The landlord refuses the assignee candidate because he believes he will not be able to comply with the obligations resulting from the lease. The landlord has been informed that several complaints have been filed against the assignee candidate due to: Excessive noise Disrespectful behavior Frequent disturbances | Age and children: The landlord refuses the assignee candidates solely because they are young and have three children. The court ruled that the landlord's refusal is insufficient and purely discriminatory. |
| Size of the housing: The landlord refuses the lease assignment on the grounds that the housing is too small for two adults and four children. The house is a chalet style and has only 572 square feet and has a very small bedroom in the mezzanine. The court rules that the landlord was right to refuse the lease assignment because the house is not large enough for the lease to be assigned to a family of six people. | Size of the housing: The landlord refuses the lease assignment on the grounds that the housing is too small for two adults and three children. The housing is a single-family residence that includes three bedrooms and a basement. The court rules that the housing was large enough for the lease to be assigned to a family of five people. |
- The landlord can never force the termination of the lease!
The assignment of the lease is a right of the tenant! So, even though the landlord offers the tenant to terminate his lease, the tenant always has the right to assign his lease. For example, it is possible that the tenant wants to assign his lease to a relative and wants this person to benefit from the terms and conditions of his current lease (rent amount).
The landlord has 15 days to refuse the lease assignment for serious reason!
When the landlord refuses the lease assignment, he must indicate to the tenant, within 15 days of receiving the lease assignment notice, the reasons for his refusal, if he does not, he is deemed to have consented. In addition, the reason or reasons for refusal must absolutely be set out in writing.
A lease assignment refusal without reasons is not valid!
Quebec courts have repeatedly affirmed that a refusal notice sent by the landlord must include the reasons for refusal and without reasons provided within 15 days, the lease assignment will be considered accepted. Indeed, the law requires that the refusal of a lease assignment must include the reasons and without justification, the lease assignment is deemed to be accepted.
Let's take the example of a tenant sending a notice of lease assignment to their landlord, indicating the name and address of the person to whom they intend to assign the lease. The landlord responds 14 days later refusing the lease assignment without giving a reason.
Well, even though he refused within the 15-day period, the lease assignment is considered accepted, because the landlord absolutely had to provide a reason justifying his refusal.
In case of unjustified refusal to the lease assignment, the tenant can appeal to the Administrative Tribunal of Housing!
If the tenant believes that his landlord has not provided a serious reason justifying the refusal of the lease assignment or has not respected the 15-day period, he can file a request with the Administrative Tribunal of Housing to force the owner to accept the lease assignment.
Model of lease assignment notice
A lease assignment notice is not a complicated legal procedure. Indeed, the law only requires the tenant to provide the name and address of the person to whom they intend to assign the lease. However, it is strongly recommended to include the date of the lease assignment and the phone number of the prospective assignee.
| NOTICE OF LEASE TRANSFER Notice to: (Name of the landlord) Address: (Rented accommodation) You are notified that I intend to transfer the lease to: Name: (Name of the candidate-assignee) Address: Phone: (Optional) The lease transfer will take effect on: (Date) Date: Name: (Tenant) (Tenant's signature) |
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JuriGo helps you find a lawyer specialized in real estate law!
Lease assignment is a tenant's right! So, if you believe that your landlord has not provided a serious reason justifying his refusal to your lease assignment or simply has not respected his 15-day deadline, do not hesitate to call on a lawyer specialized in real estate law.
A lawyer specialized in the field has the knowledge and expertise to provide you with appropriate legal advice. In addition, a lawyer will prepare the relevant documents to support your request and will take care of making the necessary representations before the Housing Administrative Tribunal.
Using the services of a lawyer specialized in real estate law increases your chances of obtaining a judgment obliging the landlord to accept your lease assignment.
Are you looking for a lawyer specialized in real estate law? Look no further, JuriGo can put you in contact with one of our partner lawyers!
All you have to do is explain the situation in the form at the bottom of the page, and we will put you in contact for free and without obligation with a lawyer in your area!