Bill 31, concerning housing, has provoked many reactions, but the strongest was the one against section 7, tabled to modify the assignment of leases. In the text presented, the Code would be improved by the insertion, introduced after Section 1978, of the following subsection:
“§8.1. — The assignment of the lease”
1978.1. Where the notice of assignment under section 1870 relates to a residential lease, it must indicate the date of assignment intended by the tenant.
“1978.2. A landlord who is notified of the tenant’s intention to assign the lease may refuse to consent to it for a reason other than a serious reason referred to in the first paragraph of section 1871. The lease is then terminated on the date of assignment indicated in the notice sent by the tenant.
The Association des Propriétaires du Québec (APQ) supports the adoption of clause 7 of the bill, as drafted, and made the recommendation during its hearing before the parliamentary committee on September 20th.
This section was discussed and debated for many hours, as the different political parties did not have the same opinion on the transfer of leases.
As explained by Mme Duranceau, Minister of Housing, the assignment of leases has been used in a roundabout way in recent years. Tenants, supported by tenants’ associations, are using lease assignments as a tool to control rent prices.
“We must not forget that this measure is not meant to control rents, it is not meant to give it back to the next one coming. It is a measure to ensure that someone who wants to leave their housing ... is capable of relinquishing his obligation under the lease.” (1)
It is important to remember that this section does not cause tenants to lose any rights.
Indeed, the tenant can always assign his lease or have his lease terminated because the primary purpose of the lease assignment is to allow a tenant to be released from his lease.
This section even alleviates the tenant’s obligations and therefore the stress since he can now be released by termination, whereas before he could remain responsible for his lease until he had found a tenant who would be accepted by the landlord.
Moreover, many tenants are diverting from the original purpose of allowing tenants to free themselves from their obligations under the lease and use this possibility to transfer leases and in some cases to sell the right to the lease.
It should also be noted that another section, section 7.0.1(2), is adopted, which inserts after section 7 (section on the amendment of the assignment of lease adopted): “7.0.1
This Code is amended by the insertion (...):
1978.3 A tenant who assigns his lease may not demand consideration.
1978.4 A tenant who sublets his dwelling shall not charge, in addition to the cost of services and reasonable charges for the use of personal property owned by the tenant, an amount greater than the rent paid by the tenant to the landlord.”
Under these sections, it will now be forbidden to haggle over a lease or to make a profit by subletting someone else’s property.
Bill 31 is still under study, and several amendments have yet to be debated and voted on.
As we approach the end of the session, we will monitor the progress, and if Bill 31 is passed or postponed to the next session.
(1) Toutes les auditions sont disponibles au https://www.assnat.qc.ca/fr/travaux-parlementaires/commissions/cat/mandats/Mandat-49899/index.html
(2) Amendements adoptés https://www.assnat.qc.ca/Media/Process.aspx?MediaId=ANQ.Vigie.Bll.DocumentGenerique_193897&process=Default&token=ZyMoxNwUn8ikQ+TRKYwPCjWrKwg+vIv9rjij7p3xLGTZDmLVSmJLoqe/vG7/YWzz