Your best friend suggests buying a beautiful duplex together. But there’s one point they insist on: they don’t want anything to do with problematic tenants. The plan is for each of you to live in one of the two units – perfect neighbours. Sounds good, right? But repossessing a rental unit isn’t quite that simple.
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Important: Repossessing rental housing is not the same as evicting a tenant. Evictions are only allowed under specific conditions. |
Co-ownership may seem like a good investment strategy, but it comes with its challenges. There are many rules to follow, notably when it comes to repossessing rental housing.
In Quebec, property owners can only take back an occupied rental unit under specific conditions. But if you bought the property with one or many other people, the rules for repossessing housing are even tighter.
Who can repossess a rental unit?
If you’re the co-owner of a property, you can repossess rental housing only in limited cases. This is possible when the other co-owner is your spouse or your partner in a civil union, common-law relationship or parental union. If there are any other co-owners, repossession is never allowed.
This rule applies no matter how big or small each co-owner’s share in the property is. For example, if a couple buys a triplex, but their financial institution requires a third person to co-sign, repossession is not allowed. This is the case even if the couple owns 99% of the property and the co-signer, like a parent, owns the remaining 1%.
Also, if you’re thinking of buying a property with your spouse or partner with the end goal of repossessing a rental unit, you must buy the property in your personal names. If a company (business corporation) is a legal co-owner of the property, neither the company nor the other co-owners can repossess rental housing. This is the case even if the company is fully owned by two people in a relationship. There are no exceptions to this rule.
Who can move into the unit once it’s been repossessed?
If you and your spouse or partner bought property together, you can move into one of the units. But this is allowed only if you don’t own another equivalent rental unit that’s unoccupied. For example, let’s say you bought a duplex in which each of the units has four bedrooms. If one of the two units is vacant, you can’t repossess the unit that is rented out. The law considers units to be equivalent if they’re located close to each other, have similar dimensions, and are rented at similar prices.
You can also repossess a rental unit to house one of the following people:
- your children,
- your parents,
- a family member for whom you are the main source of support,
- an in-law for whom you are the main source of support (your mother-in-law, for example),
- any other relative for whom you are the main source of support.
Low-income seniors
If one of your tenants is a low-income senior, the law may protect them from repossession. As a general rule, you can’t repossess a rental unit if the tenant meets these three conditions:
- they are 65 years old or older,
- they’ve lived in the rental unit for 10 years or more,
- their income is no higher than 125% of the maximum income that qualifies them for low-rental housing (HLM).
There are a few exceptions in the law that could allow you to repossess a unit even if the tenant meets these three conditions. For example, you could still repossess the rental unit if you are 65 or older yourself and wish to live in the unit. You could also repossess the unit to house someone who is 65 years old or older.
The notice of repossession
If you bought property, alone or with your spouse or partner, and you want to repossess a rental unit, you must send a written notice of repossession to your tenant. This notice must contain information like the expected date of repossession, the name of the person who will live in the unit and their relationship to you. The notice of repossession must also mention the rules for protecting low-income seniors from eviction.
The law states that your tenant must receive the notice within a specific time frame. If the length of their lease is over six months, you must send the notice of repossession six months before the end of the lease at the latest. For example, if their lease starts on July 1 and ends on June 30 the next year, your tenant must receive your notice on January 1 at the latest. The minimum six-month notice also applies if the lease has no set length. If the lease is for six months or less, your tenant must receive your notice one month before the end of the lease at the latest.
Your tenant must let you know whether they accept or refuse the repossession within one month of receiving the notice of repossession. If you don’t receive a response within this time, your tenant is legally considered to have refused the repossession. In this case, you can try negotiating an agreement to end the lease, decide not to repossess the unit, or apply to the housing court, or the Tribunal administratif du logement (TAL) in French, for permission to repossess the unit.