RTA section 51 specifies when an N12 cannot be used in situations of conversion to condominium.
The simplified flow chart and the LTB rulings below can help with examples.
- 2. Flow chart
- 3. Examples of LTB rulings
I. RTA SECTION 51:
"Conversion to condominium, security of tenure
51 (1) If a part or all of a residential complex becomes subject to a registered declaration and description under the Condominium Act, 1998 or a predecessor of that Act on or after June 17, 1998, a landlord may not give a notice under section 48 or 49 to a person who was a tenant of a rental unit when it became subject to the registered declaration and description. 2006, c. 17, s. 51 (1).
PROPOSED UNITS, SECURITY OF TENURE
(2) If a landlord has entered into an agreement of purchase and sale of a rental unit that is a proposed unit under the Condominium Act, 1998 or a predecessor of that Act, a landlord may not give a notice under section 48 or 49 to the tenant of the rental unit who was the tenant on the date the agreement of purchase and sale was entered into. 2006, c. 17, s. 51 (2).
NON-APPLICATION
(3) Subsections (1) and (2) do not apply with respect to a residential complex if no rental unit in the complex was rented before July 10, 1986 and all or part of the complex becomes subject to a registered declaration and description under the Condominium Act, 1998 or a predecessor of that Act before the day that is two years after the day on which the first rental unit in the complex was first rented. 2006, c. 17, s. 51 (3).
ASSIGNEE OF TENANT NOT INCLUDED
(4) Despite subsection 95 (8), a reference to a tenant in subsection (1), (2) or (5) does not include a person to whom the tenant subsequently assigns the rental unit. 2006, c. 17, s. 51 (4).
CONVERSION TO CONDOMINIUM, RIGHT OF FIRST REFUSAL
(5) If a landlord receives an acceptable offer to purchase a condominium unit converted from rented residential premises and still occupied by a tenant who was a tenant on the date of the registration referred to in subsection (1) or an acceptable offer to purchase a rental unit intended to be converted to a condominium unit, the tenant has a right of first refusal to purchase the unit at the price and subject to the terms and conditions in the offer. 2006, c. 17, s. 51 (5).
SAME
(6) The landlord shall give the tenant at least 72 hours notice of the offer to purchase the unit before accepting the offer. 2006, c. 17, s. 51 (6).
EXCEPTION
(7) Subsection (5) does not apply when,
(a) the offer to purchase is an offer to purchase more than one unit; or
(b) the unit has been previously purchased since that registration, but not together with any other units. 2006, c. 17, s. 51 (7)."
II. FLOW CHART (N12 in conversion to condo context):
III. LTB EXAMPLES:
"[...]
Evidence:
3. The Tenant testified that she use to walk by the building when she was a child going to school and that it was a residential rental complex back then. That was over 40 years ago. She said that she moved into the rental unit prior to the property being converted to condominiums in 2001 and was told by the previous Landlord that she had right of tenure under section 51. The unit was sold to the current Landlord in 2014 and when she received the N12 Notice she told the Landlord that she thought section 51 applied to her.
4. The Landlord testified that she offered the Tenant the first right of refusal, but the Tenant didn’t want to purchase the unit. The Landlord did not dispute that the property had been used as residential rentals since the Tenant was a child.
Analysis:
5. The Tenant is a person who was a tenant of a rental unit when it became subject to the registered declaration and description. The Tenant had moved into the rental unit prior to the conversion of the rental unit into a condominium unit in 2001. Thus the tenancy falls within the scope of section 51(1) of the Act. Therefore the Landlord cannot serve the Tenant with a notice of termination under sections 48 or 49 of the Act for the Landlord’s own use or Purchaser’s own use.
6. However the exemption to section 51(1)of the Act must also be considered. That section provides that if no rental unit was rented before July 10, 1986 then section 51(1) does not apply. In this case the rental unit was rented prior to July 10, 1986 because the Tenant testified that the property was a rental housing complex when she was a child going to school 40 years ago. Without any evidence to the contrary I find that section 51(1) applies and the Landlord is not entitled to seve the Tenant with a N12 Notice to terminate the tenancy for purchaser’s own use and the application must be dismissed.
It is ordered that:
1. The Landlord’s application is dismissed.
[...]"
"[...]
2. It was uncontested that the Tenants’ tenancy commenced on September 1, 2003. According to the Tenants, the rental unit was converted to a condominium in July 2004. It was uncontested that a conversion to condominiums took place at this residential complex. Therefore, the Tenants submit that the Landlord was not entitled to serve a notice under section 48 of the Act.
3. The Landlord is the recent purchaser of the rental unit. She purchased the unit with the intention at some point for her son to move into the unit. The Landlord submitted that she was not aware that the Tenants she inherited with this unit were subject to subsection 51(1) of the Act. She was simply told they were month-to-month Tenants.
4. The Tenants submitted that they were aware that the unit was for sale and posted notice in the unit regarding their tenancy and subsection 51(1) of the Act. There was no dispute that the Landlord never viewed the unit.
5. Given that there was no dispute the Tenants were occupying the rental unit when the conversation to a condominium took place back in 2004, I am satisfied that in accordance with subsection 51(1) of the Act, the Landlord was not entitled to serve a notice of termination pursuant to section 48 of the Act. Consequently, the application is dismissed.
[...]"
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