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Assignment of Lease Agreement Ontario: Legal Process & Requirements

The ins and outs of assignment of lease agreement in ontario.

As a law enthusiast, there`s something fascinating about the intricacies of lease agreements. Assignment of Lease Agreement Ontario, particular, topic piqued interest quite time. Delve details explore complexities subject.

Understanding Assignment of Lease Agreement

In the realm of real estate, a lease agreement plays a crucial role in determining the rights and responsibilities of both landlords and tenants. In the context of Ontario, the assignment of lease agreement refers to the transfer of a tenant`s rights and obligations under the lease to a new tenant.

When it comes to assigning a lease agreement in Ontario, there are specific legal requirements and considerations that must be taken into account. Take closer look key points:

Case Studies and Statistics

To gain deeper understanding topic, examine real-life Case Studies and Statistics related assignment lease agreements Ontario:

According to a study conducted by the Ontario Landlord and Tenant Board, approximately 20% of lease assignments result in disputes between the original and new tenants.

In a notable case in Ontario, a landlord refused to consent to an assignment of lease, leading to a legal battle that lasted over a year and resulted in significant financial implications for all parties involved.

Expert Insights

I had the opportunity to speak with a seasoned real estate lawyer who provided valuable insights into the assignment of lease agreements in Ontario. According to the expert, the key to a successful lease assignment lies in thorough due diligence and clear communication between all parties.

“From a legal standpoint, it`s crucial for tenants to fully understand their rights and obligations before seeking to assign a lease,” the lawyer emphasized. “Likewise, landlords must approach lease assignments with caution and ensure that the process complies with the legal framework.”

Final Thoughts

Exploring nuances Assignment of Lease Agreement Ontario truly enriching experience. From navigating legal requirements to understanding real-world implications, it`s evident that this topic carries significant weight in the realm of real estate law.

As I continue my journey in the field of law, I look forward to delving deeper into complex topics such as this, gaining a deeper understanding of the legal intricacies that shape our society.

Top 10 Legal Questions about Assignment of Lease Agreement in Ontario

Assignment of Lease Agreement Ontario

This Assignment of Lease Agreement (“Agreement”) is entered into on this [Date] by and between the Assignor and the Assignee, collectively referred to as the “Parties.”

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Do you know the difference between roommates, subletting and lease assignment?

By Dilshad Burman

Posted November 17, 2023 6:17 pm.

Last Updated December 20, 2023 7:05 pm.

*This article has been edited to clarify landlord’s rights pertaining to lease assignments*

As per the Rental Tenancies Act (RTA), there are a few ways in which tenants can legally share their rental home or have someone else take it over from them in Ontario, but each is different and governed by a specific set of rules.

A tenant in Ontario can choose to share their rental home with roommates or move in a partner or spouse with no legal obligation to inform or take permission from the landlord.

“The way that I like to frame it generally is it’s frankly none of the landlord’s business who else lives in your unit,” says Don Valley Community Legal Services staff lawyer Karly Wilson.

“If you wanna add a tenant to a lease, then you have to obviously communicate that to the landlord because that’s a contract between the two of you. But if it’s just someone moving into the unit and they’re paying rent to you directly, and then you pay it to the landlord, that’s totally fine. As long as you’re not overcrowding the unit with too many people, it’s really not up to your landlord who lives there.”

• What you need to know about living with roommates in Ontario

Wilson says the terms of the lease, for example utilities being included and costs possibly increasing due to more use, have no bearing on the rights of the tenant to have roommates.

“It’s not a nice way to say it, but that’s something the landlord should have thought of when they were putting the lease together, if that was a concern,” she says.

In such a case, the leaseholder is responsible for the rent and roommates are not protected by the RTA nor do they have any recourse with the Landlord and Tenant Board (LTB).

Subletting a rental home is often confused with having a roommate or paying guest.

However, Wilson explains that subletting refers to the tenant temporarily renting their unit to someone else during a period in which they are not occupying it themselves.

“Necessarily for subletting, you have to have a set end date and you have to have an intention to return to the unit after that end date. So someone just takes your place for a period of time,” she says.

“The really common one you’ll see are students who have a one year lease, but they’ll go away for the summer or a co-op semester.”

Unlike with roommates, in order to sublet, the tenant must seek permission from the landlord.

“They essentially have to let you sublet unless they have a good reason not to. So reasons why a landlord might not want to let somebody sublet is if you’re offering a sublet to a particular person [who] has a bad credit rating or they have really bad landlord references, that’s a good reason. Or if you have sublet before and the subletters you’ve used have trashed the place or they haven’t paid rent,” says Wilson.

If a tenant believes a landlord does not have good reason or is arbitrarily refusing the sublet, they have the option to file an A2 form with the LTB requesting that the board order the landlord to give permission. On the other hand, if a tenant sublets the unit without the landlord’s permission, the landlord can file the same form with the LTB.

A hearing will then be held – but Wilson warns that there is currently over a year’s wait for A2s to be heard at the LTB.

Tenants are responsible for the sublessee’s behaviour and any damage or other problems that may arise. The duration of a sublet must also be less than the term of the lease.

“So if you’re on a one year lease, you can’t say I’m going to sublet it for 18 months. Right. What that also means is if you’re on a month to month lease, technically your sublet term has to be one month minus a day,” she adds.

“A lot of landlords will give consent to back to back sublets. So if you can only sublet for one month, they’ll [say] you can do four of those back to back to somebody else.”

The terms of the sublet must be the same as the lease and tenants cannot charge a sublessee more rent than they are paying or for any amenities included in the rent such as parking.

“[That is] very against the rules, very against the Residential Tendencies Act, and will absolutely get you busted,” says Wilson.

In case the tenant is unable to return to the rental unit or chooses not to, they are still responsible for the rent even if the sublessee moves out.

“You can ask the permission of the landlord to let that [person] become a tenant essentially, or you’re now on the hook to find someone to fill that spot,” says Wilson.

Lease Assignment

Assigning a lease refers to a tenant passing on a lease onto another person with no intention of returning to the rental unit.

“You’re taking the contract you signed and you’re giving it to a different person,” says Wilson.

If a tenant wants to assign their lease, they must ask the landlord for permission. In this case the landlord can refuse assignment. However, if they agree, they cannot unreasonably decline proposed assignees.

As with a sublet, if a tenant feels the landlord is unfairly refusing an assignee, they can file an A2 with the LTB and the landlord can do the same if a tenant assigns the lease without permission.

However, if a landlord refuses assignment or does not reply to the tenant’s request, a tenant can legally terminate their tenancy early — before the end of the lease term — with only 30 days notice, as opposed to the usual 60 days.

“So if you’re in a one-year lease and then three months in, your life changes and you ask your landlord, c’an I assign the rest of my tenancy, nine more months to somebody else?’ If they don’t reply or they just say flat ‘no’ without any reasons, then you can terminate your tenancy,” explains Wilson

In order to terminate the tenancy in such a case, the tenant would send the landlord an N9 notice which includes a section for refusal to assign.

The terms of the assignment remain the same as the lease and once it expires, it automatically becomes a month-to-month tenancy as it would have with the original tenant. The assignee is under no obligation to sign a new lease and rental terms cannot be changed by the landlord.

“So you signed a contract that says you are going to rent somewhere for 12 months and then it automatically turns to a month to month. If you give that halfway through to somebody else, they still have the same rights and responsibilities as you did. They are effectively taking your place as a tenant with all the rights, all the burdens that come with it,” says Wilson.

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Assign to a new tenant

Question & Answer

Another legal way to move out early is to assign your place to a new tenant.

Assigning means that the new tenant replaces you and takes over your rental agreement. The amount of rent and all other details of the agreement stay the same. You are not responsible if the new tenant causes damage or owes rent. But when you assign, you do not have the right to move back in later.

You must ask your landlord for permission to assign. It is best to ask in writing and keep a copy of your request. Your landlord must answer within 7 days.

If your landlord agrees to let you assign, they are allowed to charge you a fee. The fee can't be more than your landlord had to spend on things like a credit check, and advertising if the landlord found the new tenant.

Your landlord can refuse to let you assign to a particular person if there is a good reason. For example, if the person caused problems for a landlord in the past, such as damaging property or not paying rent.

Write a letter asking to assign

Use this tool to write a letter to your landlord asking if you can assign your unit.

If your landlord won’t let you assign to anyone

If your landlord won't let you assign at all or does not give you an answer within 7 days, you can move out with 30 days' notice .

To do this, give your landlord a Tenant’s Notice to End the Tenancy (Form N9) no later than 30 days after you asked for permission to assign.

In this situation, the usual rules about the timing of your notice do not apply. You can choose any termination date , as long as it is at least 30 days after the day you give your landlord the notice.

You can mail or fax the notice, or give it to your landlord in person. You can also give the notice to your landlord's agent. An agent can be someone who works for your landlord, for example, the superintendent or someone who works in the property manager's office.

NOTE: If you mail the notice you must do this 5 days before the day you need to give it to your landlord.

You might not have a right to assign if you live in

• subsidized housing
• a superintendent's unit
• housing provided by a school where you work or are a student

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Guide to Ontario’s standard lease

A guide, in multiple languages, to help landlords and tenants understand and complete the Standard Form of Lease (standard lease). It also contains information on rental rules, and rights and responsibilities of landlords and tenants under the Residential Tenancies Act .

On this page Skip this page navigation

About the standard lease.

The standard lease is required for most residential tenancy agreements signed on or after April 30, 2018.

When complete, the standard lease creates a contract between the landlord and tenant. It is also called a residential tenancy agreement.

The standard lease does not apply to care homes, sites in mobile home parks and land lease communities, most social and supportive housing, certain other special tenancies and co-operative housing.

Under the Ontario Human Rights Code , everyone has the right to equal treatment in housing without discrimination or harassment.

A lease cannot take away a right or responsibility under the Residential Tenancies Act (the act)

If you have questions

The Landlord and Tenant Board provides information about landlords and tenants rights and responsibilities under the act (available in English or French). You can contact them Monday to Friday from 8:30 a.m. to 5:00 p.m. by calling:

• Toll-free: 1-888-332-3234
• Tel : 416-645-8080
• Toll-free TTY : 1-800-855-0511

What is in the standard lease

1. parties to the agreement.

This section has the names of the landlord(s) and tenant(s) who are agreeing to the tenancy.

2. Rental unit

This section describes the rental unit that is being rented and address.

The number of parking spaces if any and their location is also described in this section.

If the rental unit is in a condominium:

• it should be indicated in this section
• the tenant is also agreeing to follow the condominium declaration, bylaws, and rules that are provided by the landlord

3. Contact information

This section has the landlord’s address where notices must be sent. If a tenant needs to give a formal notice to the landlord, it should be delivered to this address.

This section also allows the landlord and tenant to agree to receive formal notices by e-mail, and includes a space for both the landlord and the tenant e-mail addresses. Formal notices can only be given by e-mail where allowed by the Landlord and Tenant Board’s rules. You can contact the Landlord and Tenant Board to find out which notices can be sent electronically.

This section also includes a place for the landlord to provide additional contact information for emergencies or day-to-day communication.

4. Term of tenancy agreement

This section has the date that the tenant will have the right to move into the rental unit and the length of time (term) of the tenancy.

The end of an agreement does not mean the tenant has to move out or sign a renewal or new agreement in order to stay. The rules of the agreement will still apply and the tenant still has the right to stay:

• as a monthly tenant, if the agreement was for a fixed term or monthly tenancy,
• as a weekly tenant, if the agreement was for a weekly tenancy, or
• as a daily tenant, if the agreement was for daily tenancy.

This section sets out the total rent (also called the lawful rent).

The total rent is the total of the amounts listed in sub-section 5(b) which includes:

• the base rent for the rental unit
• any separate charges for parking or other services, such as a storage locker or air conditioning, that the landlord provides to the tenant

Any future rent increase will be based on the total rent in sub-section 5(b).

This section also includes when rent must be paid, to whom it must be paid, what methods will be used for payment, and any administrative charges for cheques returned by a financial institution.

6. Services and utilities

This section sets out what services are included or not included in the total rent (lawful rent). This includes both services that are included in the base rent in sub-section 5(a), and services for which the landlord has set out a separate charge in sub-section 5(b) of the standard lease.

In some cases, a landlord and tenant can later agree to add other services in exchange for a rent increase. For example, a landlord and tenant may agree to a seasonal rent increase for additional services of air conditioning or a block heater plug-in, so the tenant can heat up their car engine on cold winter days.

In this section, the landlord and tenant also agree on who is responsible for utilities (electricity, heat, water) at the rental unit.

7. Rent discounts

This section allows a landlord to offer a rent discount.

After the rent discount ends, the tenant must pay the total rent (lawful rent) agreed to in section 5, plus any lawful increases.

8. Rent deposit

In this section, the landlord and tenant agree whether a rent deposit is required, and the amount. The law limits the amount  and how it is to be treated. A rent deposit cannot be used as a damage deposit.

9. Key deposit

In this section, the landlord and tenant agree whether a key deposit is required, and the amount. The law limits the amount and how it is to be treated.

10. Smoking

Under provincial law, smoking is not allowed in any indoor common areas of the building outside of the rental unit. In this section, a landlord and tenant can agree to rules about smoking in the rental unit.

11. Tenants insurance

In this section, a landlord and tenant can agree whether the tenant must have liability insurance. If the landlord asks for proof of coverage, the tenant must provide it.

It is up to the tenant to get contents insurance if they want it.

12. Changes to the rental unit

This section explains that the tenant can install decorative items, such as pictures or window coverings, but that they must have the landlord’s permission to make other changes to the rental unit.

This section cannot be changed. If the landlord and tenant wish to agree to additional details, these can be written out as additional terms in section 15.

13. Maintenance and repairs

This section explains that the landlord must maintain the rental unit and property, but the tenant must repair or pay for any undue damage caused by the tenant or their guests.

The tenant is responsible for keeping the unit clean, unless the landlord agreed to do so.

14. Assignment and subletting

This section explains that the tenant needs the landlord’s permission to assign or sublet the unit to someone else, and that the landlord cannot arbitrarily or unreasonably withhold consent.

15. Additional terms

The landlord and tenant can agree to additional terms that are specific to the tenancy. If agreed to, these additional rules or terms must be attached to the lease agreement.

These additional terms should be written in plain language and clearly set out what the landlord or tenant must or must not do to comply with the term. If typed, the additional terms should be in a font size that is at least 10 points.

Additional terms may set out rules that are very specific to the rental unit or property, such as rules about the use of common spaces or amenities.

Any extra term which attempts to take away a right or responsibility under the act is void (not valid or legally binding) and cannot be enforced. Some examples of void and unenforceable terms include those that:

• do not allow pets (however, the landlord can require the tenant to comply with condominium rules, which may prohibit certain pets)
• do not allow guests, roommates, any additional occupants
• require the tenant to pay deposits, fees or penalties that are not permitted under the act ( e.g. , damage or pet deposits, interest on rent arrears)
• require the tenant to pay for all or part of the repairs that are the responsibility of the landlord

The landlord and tenant may want to get legal advice before agreeing to any additional terms.

16. Changes to this agreement

This section explains that any changes to the agreement must be agreed to in writing.

17. Signatures

In this section, the landlord and the tenant indicate that they agree to follow the terms of the agreement. If there is more than one tenant, each tenant is responsible for all tenant obligations, including the full amount of rent.

All landlords and tenants listed in section one (parties to the agreement) must sign this section. The landlord(s) or tenant(s) can sign the lease electronically if they both agree. The landlord must give a copy of the agreement to the tenant within 21 days after the tenant signs it.

Landlord and tenant rights and responsibilities

Some additional information about your rights and responsibilities (such as maintenance and repairs) are included in the multilingual guides and in the appendix of the standard lease .

Guide to the standard lease in other languages

• عربي (Arabic PDF )
• 中文 (简体) (Chinese (Simplified) PDF )
• 中文 (繁體) (Chinese (Traditional) PDF )
• فارسی (Farsi PDF )
• Deutsch (German PDF )
• ελληνικά (Greek PDF )
• ગુજરાતી (Gujarati PDF )
• हिन्दी (Hindi PDF )
• Italiano (Italian PDF )
• 한국어 (Korean PDF )
• Polski (Polish PDF )
• Português (Portuguese PDF )
• ਪੰਜਾਬੀ (Punjabi PDF )
• Română (Romanian PDF )
• русский (Russian PDF )
• Español (Spanish PDF )
• Tagalog (Filipino PDF )
• தமிழ (Tamil PDF )
• Українська (Ukrainian PDF )
• اردو (Urdu PDF )
• Tiếng Việt (Vietnamese PDF )

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Home Legal Answers Landlord and Tenant Residential Landlords and Tenants Subletting or assigning a lease

A tenant with a lease is responsible for paying the rent up-to the end of the lease. Tenants who want to move out before the end of the lease, normally have the option to sublet or assign their unit, which means the new tenant will be responsible to pay rent for the remaining months of the lease. If you are having trouble with your tenant or your landlord and would like help, ask a lawyer now.

Subletting rules

If the tenant only wants to move out temporarily they can arrange to sublet their unit. Subletting occurs when a tenant rents out their unit to another person, called a subtenant, for a period that is less than the length of the lease. If a tenant rents on a month-to-month basis, they can only sublet the unit for less than one month and not for any longer period, or the tenant and the subtenant may lose their rights to the unit. With a sublet, the original tenant is responsible for all the terms under the lease and must collect the rent from the subtenant, and ensure it is paid to the landlord.

If a tenant wants to sublet their unit, they require the landlord’s written approval. Landlords are not allowed to unreasonably refuse a request for a sublet. This means that if a landlord decides to refuse a subtenant, he or she must have a good reason for doing so. Further, if the landlord refuses to allow the tenant to sublet the unit, or does not reply to the request within seven days, the tenant can apply to the Landlord and Tenant Board to determine if the sublease should be allowed.

Assigning a lease: transferring it to someone new

If a tenant wants to move out before the lease expires and does not plan to return, he or she can assign the lease to another person, who will then become the tenant. Assigning a lease transfers all the tenant’s rights and obligations to another person. The new tenant, called the assignee, will be required to pay the same rent that the original tenant was paying, and the terms of the original lease will apply.

If a tenant wants to assign a lease, he or she is first required to make a written request for the landlord’s approval. As with a sublet, the landlord cannot unreasonably refuse consent to an assignment. If the landlord refuses or does not reply within seven days of the tenant’s request, the tenant has two choices: end the lease or apply to the Board to approve the assignment. If the tenants want to end the lease, they have 30 days from the day the assignment request was made to give notice to the landlord. The notice must be 30 days before the tenant will move, which is normally the last day of the month.

Subletting or assigning a lease without the landlord’s permission

If a tenant sublets or assigns their unit without first getting consent from the landlord, it is considered an unauthorized assignment or sublet. When this happens, a landlord can file an application with the Board to evict both the tenant and the unauthorized occupant. However, if the landlord fails to file the application within 60 days of discovering the unauthorized occupant, the unauthorized occupant will become a tenant.

To apply to the Board to have a sublet or assignment approved, tenants must submit the appropriate form together with a small application fee. A copy of these forms must then be delivered to the landlord. To obtain forms or for additional information on sublets and assignments, visit the Landlord and Tenant Board  website.

Help for Tenants

A criminal record  will affect your ability to be approved for a residential lease. To erase your criminal record, learn more at Pardon Partners. It’s easier than you think.

If you are a Tenant , you can add your monthly rent payment to your credit report using FrontLobby. This can:

• Contribute to improving your credit score (Renters have reported 33pts to 84pts jumps)
• Help establish a positive credit history with a new rent tradeline
• Improve your access to credit related rewards (better bank loans, credit cards, mortgage rates)

Help for Landlords & Property Managers

For legal advice and assistance with a residential tenancy and applications to the Landlord and Tenant Board, contact our preferred Landlord and Tenant experts Nicola (Nick) Giannantonio Legal Services .

If you are a Landlord or Property Manager , you can report rent payments to Credit Bureaus and screen Tenants using FrontLobby. This can:

• Attract financially responsible applicants interested in building credit with their rent
• Decrease rent delinquencies (Landlords have reported 92% reductions) and recover unpaid rent
• Reduce Tenant turnover and improve monthly cash flow

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Ontario needs to finally fix this tenancy law blindspot

Latest Videos

In Ontario, you could be responsible for a former roommate's rent years after you’ve left a leased property, due to a glaring blindspot in the Residential Tenancies Act (RTA) that successive provincial governments simply haven’t fixed.

The problem arises when there's a "joint tenancy" in which two or more tenants signed one lease, and someone wants to leave while other tenants want to stay.

The departing tenant tells the landlord that they’re leaving and will no longer be responsible for rent. In doing so, the departing tenant is effectively asking for a lease amendment (even if the tenancy is month-to-month following a lease’s term expiration).

But what happens if the landlord refuses the request? Well, things get complicated.

The RTA doesn't clarify parties' rights, even though renters encounter these situations quite often.

As a result, Landlord and Tenant Board (LTB) adjudicators consistently struggle to resolve these conflicts reasonably. In doing so, they typically start by first determining whether there’s a "joint tenancy" or “tenancy in common”.

The distinction between these two terms seems to confuse everyone. But the main thing to understand is that with a tenancy in common, renters are regarded as having separate leases with the landlord. They can terminate these easily and remaining tenants won’t be much affected.

In a joint tenancy, by contrast, multiple tenants sign one lease together and, per section 17 of Ontario’s mandatory standard residential lease , "[u]nless otherwise agreed…each tenant is responsible for all tenant obligations…including the full amount of rent."

The only scenario in which the RTA clearly contemplates one party unilaterally terminating their “interest” in a joint tenancy is where the tenant or their child has "experienced violence or another form of abuse."

Otherwise, absent a landlord’s agreement to let a departing tenant loose, the only other option tenants have is to say they're assigning their lease interest to a remaining roommate or a new one. And in this scenario, they may argue the landlord cannot "arbitrarily or unreasonably" refuse assignment per section 14 of the standard lease.

But that's an imperfect solution. Namely because section 14 (and the RTA section it’s based on) refers to assignment of a rental “unit” rather than a rental "interest". And to my knowledge, the LTB has never endorsed the move.

Furthermore, a landlord's assignment refusal may be regarded as not "unreasonable" if they can argue the departing tenant's credentials ( e.g., income, credit score, etc.) were the primary reason they agreed to the lease in the first place.

At that point a departing tenant is out of options. Which is absurd.

But the solution is simple: add a provision to the RTA stating that if tenants are not in arrears, a landlord may not refuse a departing tenant's request to relinquish their interest in a month-to-month lease.

Marc Z. Goldgrub is a lawyer at Green Economy Law Professional Corporation , a boutique Toronto law firm with a focus on green business, psychedelics, and housing.

Fareen Karim

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Sublease or Assignment: ONCA Interprets Section 3 of the Ontario Commercial Tenancies Act in V Hazelton Limited v. Perfect Smile Dental Inc.

Practical law canada legal update w-021-2454  (approx. 7 pages), factual context, relief sought by head tenant: head lease was properly renewed, head landlord's defence: head lease had expired.

• The sublease to Chaves was actually an assignment because V Hazelton leased the premises to Chaves for the entire balance of the head lease term (or did not reserve the last day for itself). As of the assignment, V Hazelton did not have a landlord-tenant relationship with Perfect Smile which could be renewed.
• The renewal clause in the head lease was void for uncertainty and unenforceable because it did not set out a specific renewal rental rate and didn't give an arbitrator sufficient guidance to determine the rate.
• V Hazelton did not satisfy the precondition in the head lease for exercising the option to renew. The option could only be exercised if the tenant was not in default, and V Hazelton was in default at the time because it had previously removed a bathroom from the leased premises without the landlord's consent, contrary to the terms of the lease.

Legal Background: Assignments and Subleases; Section 3 of the Ontario Commercial Tenancies Act

The relation of landlord and tenant does not depend on tenure, and a reversion in the lessor is not necessary in order to create the relation of landlord and tenant, or to make applicable the incidents by law belonging to that relation; nor is it necessary, in order to give a landlord the right of distress, that there is an agreement for that purpose between the parties.

Ontario Superior Court of Justice Decision: No Damages Suffered for Breach of Contract

Ontario court of appeal decision: the sublease for the entire unexpired term was not an assignment by application of section 3 of the cta; head lease was properly renewed, practical implications.

• Section 3 of the CTA only applies in Ontario, so this case may only have implications in Ontario.
• It is a change from the common law that, by statute, a transfer by a tenant of all of its unexpired term in a head lease may not be an assignment and may be a sublease in Ontario. However, the court stated that it did not remove entirely the distinguishing feature of subleases from assignments that a sublease is a lease for part of the unexpired term and an assignment is a transfer of all of the unexpired term ( V Hazelton Limited , paragraph 69). By the court's interpretation, section 3 of the CTA only applies if the sublandlord did not reserve part of the term and the parties did not intend an assignment (or, put another way by the court, the parties intended to maintain a landlord and tenant relationship between the head landlord and head tenant), as shown by the sublease agreement.
• The court's interpretation of section 3 of the CTA makes the parties' intentions relevant in finding a sublease or assignment in Ontario, while under the common law the parties' intentions are generally irrelevant. Under the common law, the important factor is whether the sub-landlord reserved part of the term (sublease) or not (assignment).
• The Ontario Court of Appeal anticipated that its decision would not have "far-ranging" impact because it expects most people will still reserve the last day of the term of the head lease in a sublease ( V Hazelton Limited , paragraph 70).
• The court seemed to expect that section 3 of the CTA may only apply in "limited cases" where a sublandlord/head tenant did not reserve the last day of the term in a sublease for some reason but wants to maintain real property rights in the leased premises that it had under the head lease ( V Hazelton Limited , paragraph 70).
• Even with this new interpretation of section 3 CTA from this case, the preferred way to create a sublease in Ontario may continue to be to reserve the last day (or some other duration) of the original term of the head lease in the sublease agreement, to avoid creating an assignment.

Practical Law Resources

• Practice Note, Assignment and Subleasing: Leasing Fundamentals .
• Standard Document, Assignment and Assumption of Leasehold Interest (with Landlord Consent and Estoppel, Long Form) .
• Standard Document, Landlord Consent to Assignment of Lease .
• Standard Document, Landlord Consent to Sublease .
• Standard Document, Sublease (Part of Premises) .
• Standard Document, Sublease (Part of Premises, Part of Term) .
• Standard Document, Sublease (Whole of Premises, Part of Term) .
• Commercial Leasing

Step 3: Signing a lease

What is a lease? 

A lease is a binding contract granting use or occupation of property during a specified period in exchange for a specified rent. Typically, a lease is one year in length.

Starting April 30, 2018, landlords of most private residential rental units – from individual landlords to property management companies – must use the standard lease template for all new leases. 

Landlord and tenant rights and responsibilities remain the same under the Residential Tenancies Act, 2006 (RTA). 

Download a  copy of the standardized lease agreement .

For more information, visit the  Government of Ontario, Ministry of Municipal affairs and housing . The Region of Waterloo Tip Sheet also explains what to look for in a lease or rental agreement. 

Purpose of the standard lease

The standard lease uses easy-to-understand language to help: 

• landlords and renters understand their rights and responsibilities
• reduce illegal terms in leases and misunderstandings caused by verbal tenancy agreements
• reduce the need for Landlord and Tenant Board hearings to resolve disputes

Who signs the lease? 

• Carefully consider other tenants included in the lease.
• Any tenant who signs the lease may be jointly or solely responsible for the entire rent of the unit. Most landlords will allow you to sign separate leases for a single room within a unit, thus if other tenants miss their rental payments, you are not responsible for covering their missed payments.
• When you sign a lease, you are making yourself liable for rent each month until the lease ends, regardless of whether you live in the unit for the full lease period. If you plan to leave your housing unit for a period of time, you should sublet or negotiate with the landlord for a shorter term.
• When leaving, you must give 60 days written notice to your landlord. Subletting entails having someone else live in your unit for part of your lease term. You must ask permission from your landlord to sublet. Your landlord cannot reasonably refuse your sublet request; otherwise you can have your lease terminated.

Negotiating the lease

A contract is an agreement between two or more people to do something and a statement of their respective responsibilities and rights in doing it. 

Most landlords use lengthy written leases containing clauses designed to protect and benefit themselves, but if you are careful, respectful, assertive, and prepared, you can sometimes get a better deal for yourself. 

• Take time to read the lease carefully before you sign it.
• Ask about any clauses you do not understand. Be sure you understand the explanation completely. You will not be excused from honouring the lease simply because you did not understand what the terms meant.
• Standard leases are typically 1-year in length.
• If you and the landlord agree to change or add to the lease, make sure both of you initial each change on the lease, or that your new agreement is written down and signed by both of you. Not only will the validity of any changes to the lease be in question if they are not put into writing and signed by both parties, but it may be very difficult to prove that those changes were ever made.
• Make sure when negotiating you understand if you need to move-out at the end of your lease or have the option/are required to renew. 
• Once you have signed the lease, be sure to get a copy for yourself.

The Region of Waterloo provides a comprehensive sheet to navigating missed rent payments and negotiating with your landlord.

Terminating your lease

Terminating partway through the lease term 

Terminating a lease is not a simple process. Once you and your landlord sign a lease, it is a legally binding contract and both parties have to agree to terminate the lease for that to take effect. It is usually only in exceptional circumstances that it becomes easier to break a lease, and even then it is usually after much deliberation and communication with your landlord that you both mutually choose to terminate a lease prior to the end of the tenancy. 

If you would like to terminate your agreement early, the best course of action is to notify your landlord and see if they are willing to let you do so. They don’t have to agree to break the lease.  

Please note that you have signed a legally binding document, in which you have agreed to live there for a specified period. As such, you will be responsible for any penalties that come with early termination. The last month’s rent should be applied toward your last month living in the unit, but it is up to the landlord’s discretion whether you will be responsible for paying for the remaining months (even if you don’t live there). 

If you are not going to live in your leased space for the full duration of the lease, you have the option is to sublet your unit.  

If you want to legally terminate the lease without the risk of any repercussions (ie. court), and your landlord is not willing to do so, the  Landlord and Tenant Board  has a few different forms that you could submit that result in a hearing that could end with the tenancy terminated.

For a printable resource download the " terminating your lease partway through your lease term " information tip sheet. 

Terminating a lease at the end of your tenancy 

If you wish to terminate your tenancy, the first step is to be informed and have a read through your lease agreement. Any information on termination is usually written in the lease. 

Unless otherwise stated, the tenant must give the landlord a minimum of 60 days’ notice prior to the end of the tenancy period to terminate their lease. The end of your tenancy period must be on the last day of the lease. Although not required, it is becoming more common that landlords will request more than 60 days' notice to terminate a tenancy (sometimes even 7 or 8 months!).  

Be mindful of leases that are one year may automatically renew for a second year if you don’t give the proper notice of termination. If you missed the early termination date, talk with your landlord in how you may be able to end your lease or find a sublet for your place. 

A fixed term tenancy is one where both landlord and tenant agree that the tenancy will last for a specific period of time. Most student leases in Waterloo are for fixed term tenancies. 

Lastly, when terminating, it is important to complete the necessary paperwork. Your landlord should provide you with a termination form. It is best that both parties sign something formal. If your landlord does not provide you with a Notice to Terminate Tenancy form, you can find one on the  Landlord and Tenant Board website (Form N9) .

Check out this "What You Need to Know About Notice Periods" tip sheet from the Region of Waterloo to understand the information that you need to know about notice periods and moving out of your rental housing. 

For a printable resource download the " terminating your lease towards the end of your tenancy " information tip sheet. 

Questions to ask before signing a lease

To ensure you make an informed decision about your rental housing, it’s essential to ask landlords important questions. Here’s a comprehensive list to guide your discussion: 

Questions to ask your landlord

Lease terms.

• What is the duration of the lease?
• How does the lease renewal process work?

Security deposit

What is the amount of the security deposit?

• How and when will it be returned? 

Emergency contact

• What are the emergency contacts?
• How are maintenance and repair requests handled?

Communication

• What is your preferred method of communication?
• How can tenants reach the landlords for non-emergency matters?
• Is subleasing allowed?
• What are the procedures?
• What furnishings are included in the rental?
• Are there shared amenities, like laundry or parking?

Rent and utilities

• What is the monthly rent?
• What amenities are included in the rent? (e.g. electricity, water, internet, etc.) 

Guest policies

• What are the rules to have guests over?
• Are there any restrictions on overnight guests?

Neighbourhood safety

• What measures are taken to ensure the safety of residents in the neighbourhood?

Lease termination policy

• What is the notice period to terminate the lease?
• What are the penalties for breaking the lease?

TIP: Refer to this guide about talking to landlords effectively (in-person or on telephone) 

Note: A landlord may ask you to sign a lease for a longer duration, but you don’t have to. In Ontario, the Residential Tenancies Act (RTA), 2006 sets out rules and responsibilities about what a landlord can and cannot require of a renter in private market rental housing. 

TIP: The Region of Waterloo Worksheet makes reviewing and summarizing your lease easier. 

Here are some additional resources that outline your tenant rights and responsibilities: 

Residential Tenancies Act  

Subletting:  Due to the co-op work terms outside of the region, subletting is common for Waterloo students. You should be aware of the legal issues with subletting that are part of the Residential Tenancies Act . Students should be aware that as the tenant, you are able to sublet your accommodation with the consent of the landlord.  The landlord should be reasonable when offering consent. If you choose to sublet your space, you remain responsible for the lease. This can put students in difficult situations if the subtenant does not follow the obligations of the lease. When signing a lease, consider your plans for your work term whenever possible.

Note: If you are living with your landlord or their immediate family member, you are in a boarding agreement. You are not protected under the Residential Tenancies Act. 

Landlord and Tenant Board

Rental scams 

Verify the property on google and consider asking your landlord for proof of ownership 

Don’t provide any payment before signing your lease  

TIP: In Ontario landlords may only ask for an advance deposit of one month's rent to be applied as last month's rent and a refundable key deposit (this is the amount it would cost to replace the key). It is not legal to ask for cleaning fees, application fees, security deposits, damage deposits, holding fees. This is for all agreements covered under RTA. 

Do your research on neighborhoods and what the average cost in the area is. Keep your guard up and use common sense.  

Check the place out even if it’s a virtual live viewing 

See this infographic from Advocacy Centre for Tenants Ontario outlining scams to learn how to spot the most common scams 

If you are concerned that a listing may be a scam, this "how to spot a rental scam" resource has tips to help you identify if it is safe. 

The difference between Subtenancy and a Lease Assignment

Lease Assignment

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The rules governing rental properties in Ontario are unique and nuanced. This is a place to discuss anything that pertains to landlords, tenants or renting in Ontario including RTA and LTB issues, news, resources, questions, stories, etc. Questions by both landlords and tenants are welcome!

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