50% Payment Before Section 82 Issues in Ontario

Introduction

Ontario’s September 21, 2026 requirement to pay 50% rent arrears before Section 82 is here. Perhaps the most common proceeding before the Landlord and Tenant Board (the “Board”) is one based on non-payment of rent. While many would argue that it is one of the more straightforward proceedings before the Board, countless rent arrears proceedings have nevertheless resulted in the denial of an eviction order due to defective notices, incorrect calculations of rent arrears and, perhaps most significantly, the tenant’s ability to raise issues under sections 82 and 83 of the Residential Tenancies Act, 2006 (the “Act”).¹

Section 82 of the Act has long been one of the most significant procedural tools available to tenants defending rent arrears proceedings. However, important amendments taking effect on September 21, 2026, introduce a new payment requirement that may substantially change how section 82 issues are raised during those proceedings.

Legislative Framework

The amendments discussed in this article form part of Ontario’s broader residential tenancy reforms introduced through the Fighting Delays, Building Faster Act, 2025 (Bill 60). Bill 60 amended the Residential Tenancies Act, 2006, while the accompanying regulations establish the circumstances in which tenants must satisfy the new payment requirement before relying on section 82 during certain rent arrears proceedings. ²

Section 82 Rent Arrears: Why Section 82 Matters

Section 82 of the Act permits a tenant to raise, during rent arrears proceeding, virtually any issue that could otherwise form the basis of the tenant’s own application against the landlord. These issues frequently include allegations that the landlord:

• failed to properly maintain the rental unit;
• interfered with the tenant’s reasonable enjoyment of the rental unit; or
• otherwise, breached obligations imposed by the Act.

Under the current legislation, a tenant intending to raise section 82 issues must provide the landlord with written notice at least seven days before the hearing. The notice must identify the issues the tenant intends to raise and provide sufficient particulars of those allegations, together with supporting evidence.

If the Board determines that the tenant has established one or more section 82 issues, it may make any order that would otherwise have been available had the tenant commenced a separate application against the landlord. ¹

How Section 82 Rent Arrears Can Affect a Proceeding

The practical effect of section 82 can be significant. If the Board awards the tenant compensation that completely offsets the landlord’s rent arrears claim, the eviction application may be dismissed. Even where the arrears are only partially reduced, the Board may still exercise its discretion under section 83 of the Act by refusing eviction, ordering the tenant to repay the arrears over time, and imposing a pay-on-time order instead of terminating the tenancy. ¹ Meanwhile, the rent arrears continue to accumulate throughout the proceeding, often increasing the landlord’s financial losses while the section 82 issues are being determined.

Section 82 Rent Arrears: Ontario’s New 50% Payment Requirement

Beginning September 21, 2026, Ontario introduces one of the more significant procedural changes affecting rent arrears proceedings. Where a tenant wishes to raise section 82 issues during rent arrears proceeding, the tenant must first pay 50% of the rent arrears claimed in the application, either to the landlord or, where permitted by regulation, to the Board. The required payment is calculated using the amount of rent arrears claimed in the landlord’s application that commenced the proceeding, together with any other prescribed amounts. ³

The payment must be made at least seven days before the hearing, before the tenant may rely upon section 82 during the proceeding. Importantly, this requirement applies not only to proceedings seeking eviction for non-payment of rent, but also to proceedings seeking only the payment of rent arrears without requesting an eviction. Although proceedings seeking only the payment of rent arrears are less common, tenants defending those proceedings must also satisfy the statutory payment requirement before they are permitted to raise section 82 issues.

Section 82 Rent Arrears: Transitional Rules

The new payment requirement does not apply to every pending unpaid rent application. Where a landlord commenced rent arrears proceeding before September 21, 2026, and the proceeding has not been finally determined before that date, the tenant is not required to satisfy the new 50% payment requirement in order to raise section 82 issues. ³ The tenant must nevertheless continue to comply with the procedural notice requirements.

Section 82 Rent Arrears: Practical Considerations

One practical issue remains regarding the timing of rent arrears proceedings. The legislation requires the tenant to pay 50% of the rent arrears claimed in the application, not 50% of the rent arrears outstanding when the hearing takes place.

Given that hearings are frequently scheduled several months after the application is filed the amount of rent arrears outstanding by the hearing date may be substantially greater than the amount originally claimed. In some cases, the arrears may have doubled or even tripled before the matter is heard.

Conclusion

The September 21, 2026 amendments represent a significant procedural change to rent arrears proceedings before the Landlord and Tenant Board. By requiring tenants to pay 50% of the rent arrears claimed before raising section 82 issues, the Legislature has introduced a new threshold that may reduce the use of section 82 in rent arrears proceedings and provide greater procedural certainty for residential landlords.

Whether these amendments ultimately reduce delays, encourage earlier resolution of disputes or simply shift tenant claims into separate tenant applications remains to be seen. As with many recent legislative changes, their practical impact will become clearer as the Landlord and Tenant Board begins interpreting and applying the new provisions.

Residential landlords should become familiar with these amendments before they take effect, as they may influence both litigation strategy and the management of rent arrears proceedings before the Board.

Disclaimer

The information contained in this article is provided for general informational purposes only and does not constitute legal advice. Every residential tenancy matter is unique, and the outcome of any particular case will depend on its specific facts and circumstances. Reading this article does not create a lawyer-client or paralegal-client relationship with Gobin & Leyenson LLP. If you require legal advice regarding your specific situation, you should consult a licensed legal professional or contact our office.

Footnotes

1. Residential Tenancies Act, 2006, SO 2006, c. 17, ss. 82 and 83.
2. Fighting Delays, Building Faster Act, 2025 (Bill 60).
3. Residential Tenancies Act, 2006, as amended effective September 21, 2026, together with Ontario Regulation 516/06, as amended.