Landlord Loses Rent Arrears Case After Selling Property: Skubik v Kalikci
LTB Ruling: Former Landlord Cannot Claim Rent Arrears After Selling Property
Summarized by RentZenLast updated: July 22, 2024
Case Summary
Unit ****, 1639 Copseholm Trail, Mississauga, ON L4W2C1
Decision in favor of
landlord
Balance Owed
-
Dispute Categories
Notices Sent
Agree with the ruling?
Timeline
Application Date
Oct 2020
Hearing Date
Aug 2021
Order Date
Jan 11, 2022
Dispute Summary
Landlord applied for an order to terminate the tenancy and evict Tenants due to failure to pay rent. The application was filed after serving a valid Notice to End Tenancy Early for Non-payment of Rent (N4 Notice).
Determinations
- Landlord sold the property to Tatjana Zaharova on 2021-03-31
- Rent arrears are a covenant that were assumed by the new Landlord
- Rent arrears were not transferred to new Landlord in the sale agreement
- Tenants still reside in the rental unit
Case Study
The Landlord is not able to pursue the claim for rent arrears as he is no longer the Landlord and is no longer a party to the tenancy agreement with the Tenant. The rent arrears are a covenant that were assumed by the new Landlord, Tatjana Zaharova, upon the sale of the rental unit.
Arguments and Actions
Landlord
Arguments
The Landlord's Legal Representative submitted that the rent arrears were not transferred to the new Landlord in the agreement of purchase and sale, and therefore the Landlord can still pursue the claim.
Tenant
Arguments
The Tenant asserted that the rent arrears are a covenant that run with the land and can only be pursued by the current Landlord, Tatjana Zaharova.
Decision Summary
The Landlord's application is dismissed as the rent arrears are a covenant that were assumed by the new Landlord, Tatjana Zaharova, upon the sale of the rental unit.
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