Bill 97 Is Finally Here — Well, Almost. Part II
On June 8, 2023, Bill 97, Helping Homebuyers, Protecting Tenants Act, 2023[1] (“Bill 97”) received Royal Assent. Among other Acts, Bill 97 sought to amend the Residential Tenancies Act, 2006[2] (“RTA”) on various issues. However, none of those amendments came into force in 2023. In fact, the province did not even announce a start date. As a result, the proposed changes did not become law, and landlords waited without a clear timeline. Until now.
July 1, 2026 is the date on which some, but not all, items within Bill 97 will change the RTA. In this article, the landlord’s legal team at Gobin & Leyenson LLP identifies one of the changes that become law on July 1, 2026, and explains how it affects residential landlords in Ontario. Follow us on social media to learn more and empower yourself as a residential landlord to make informed decisions about your rental investment property. Read our other articles HERE.
Rent Arrears Agreements and Current Rules
When a landlord files an application with the Landlord and Tenant Board (LTB) for rent arrears or for eviction due to non‑payment, and the parties reach an agreement regarding payment of arrears and ongoing rent, the LTB can issue an order with payment terms without holding a hearing. Right now, this applies only to agreements about rent arrears, not agreements involving termination or eviction.
Conditions for an LTB Payment Order
To issue a payment order without a hearing, the LTB requires the following:
- The landlord and tenant reach a written agreement resolving the arrears listed in the application.
- Both parties sign the agreement.
- The agreement is filed with the LTB.
LTB Form – Payment Agreement.
New Condition Effective July 1, 2026
A new requirement takes effect on July 1, 2026. The agreement must be completed on a form approved by the LTB. Although the LTB has not yet released the form, it will likely be the existing Payment Agreement currently on its website.
What has not changed is the LTB’s authority to order:
- payment of arrears,
- NSF and related administrative charges,
- reimbursement of the landlord’s filing fee, and
- payment of ongoing rent during the repayment period.
The LTB still cannot include an eviction order within this type of payment order. However, the LTB may include a section 78 clause. This clause allows the landlord to return to the LTB for an eviction order if the tenant does not follow the agreement or the resulting order.
When the Tenant Fails to Comply
A landlord does not need to serve a new eviction notice if a tenant breaches the agreement or the LTB order. If the landlord seeks to reopen the original arrears application, they must give the tenant a copy of the reopening request and the hearing notice, as required by the LTB Rules.
The landlord must also identify:
- which term the tenant breached, and
- how the tenant failed to comply with the terms of the original agreement and order.
The request to reopen must be filed within 30 days of the tenant’s first breach. At the hearing, the LTB will not proceed until the landlord proves the tenant failed to comply with the terms of the order.
False or Misleading Statements and Coercion
If either party entered the agreement because of a false or misleading statement made by the other party, and that statement materially affected the agreement, the affected party may request that the LTB reopen the application. The same rule applies if one party was coerced into agreeing. This request must be filed within 30 days of the order based on the agreement. Even when the order contains a section 78 clause, the landlord may still reopen the file if the tenant misled or pressured the landlord into the agreement. At the reopening hearing, the LTB will not proceed until the requesting party proves that the agreement resulted from false information or coercion.
Additional rules apply to non‑profit housing co‑operatives, but they are not covered in this article.
Disclaimer
Landlord legal team at Gobin & Leyenson LLP invites you to follow us on social media, and stay updated on the changes and new cases which impact residential landlords in Ontario. This article provides general information only. It is not legal advice. Contact Gobin & Leyenson LLP for advice specific to your situation.