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Entered into an illegal contract with a tenant

 
Debra Thal's Avatar
  • Answered by:Debra Thal
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Customer Question

I entered into an 'assignment to lease contract' with a tenant to sub-lease the remainder of the lease. This was done though a real estate agent and I have a copy of the lease signed by both parties. I assumed that since this was done through an agency that all the proper permissions were given. It wasn't until I moved into the unit did I discover that the owner of the unit never gave permission.


 


Since that time, May 11th, it has been a nightmare of harassment from the landlord to evict me...all words, no action. I have had the police at my door apparently since the landlord was trying to get me out.


 


The original tenants have their lawyer involved and have proposed that I move into another unit of theirs for the term...which makes me feel like I have no rights. The lease term was to expire Sept 29/2012. I have read the landlord tenant act and I realize this is an illegal lease since the landlord did not give permission for me to enter the unit.


 


Their is a sticky area. The real estate agent worked a deal for me to get me into the unit. It is a furnished unit and I had to store my furniture. The price per month of the unit was reduced by the cost of monthly storage. If I prepaid the full amount of the short term lease I also received a reduction of rent. So I prepaid the full amount of the lease and I also prepaid the full amount of the storage unit to the end of September. I don't feel comfortable at this place and want to get out as soon as possible.


 


What rights do I have? What monies can I ask for as refund? The whole amount of the contract since it was illegal to start with? Storage costs as I never would have incurred them if I didn't take this unit? Mail redirect costs? Moving costs to get out of it? Should I take them to small claims and who should I sue? What proposal can I make? I don't know from day to day where the lease stands. I have spent a great deal of time talking on the phone with the tenants, lawyer, landlord and it's causing me stress that is not fair.  I have also been spending my time looking at condos since I don't know if and when I'm being evicted.


 


Currently the landlord is continuing to threaten and the orginial tenants are in a holding pattern. I have yet to enjoy the place or have quiet enjoyment since I never know what the next curve is in this horrible situation.


 


Ideally I would like a lawyer to talk with the tenants lawyer and work a deal. I believe I can move by the end of the month and I would prefer this so I can get on with my life and not be the tennis ball that gets batted around. I appreciate your help on this...it's a pickle that needs to be resolved. I'm hoping I can recouped my monies back...


 


I'm located in Etobicoke, Ontario

 

Optional Information:
Province/Territory relating to question: Ontario

Already Tried:
this is my first place

Submitted: 318 days and 3 hours ago.
Category: Canada Law
Value: CA$79
Status: CLOSED

Accepted Answer

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Expert:  Debra Thal replied 318 days and 3 hours ago.


Debra Thal (username) :

How terrible.

Debra Thal (username) :

I am sorry to hear of this horrible situation.

Debra Thal (username) :

You are entitled to be put in the position you would have been in had this not happened.

Debra Thal (username) :

Sorry your landlord (the tenant) is the one to sue and the one to pay you damages.

Debra Thal (username) :

This would include all out of pocket expenses and damages for inconvenience.

Debra Thal (username) :

I think bringing in your own lawyer makes sense.

Debra Thal (username) :

You can contact the Law Society and use their Lawyer Referral Service. You will be given the name of a lawyer and can consult with the lawyer and the first half hour will be free.

The number is:

416-947-3330 (within the GTA)

Customer :

If I find a place to move to, can I ask for all my money back from the beginning of the contract or just the remainder from the move date? Do I need the original tenant to agree to that beforehand or can I move on and then ask for monies back.

Customer :

I'm not understanding what you noted as 'entitled to be put in the position you would have been in had this not happened'. could you please elaborate? Knowing my out of pocket expenses what would that cover?

Customer :

So the real estate agent is not liable for any of that? I was the buyer, but she did not protect the sellor nor me since she did not do her due dilligence on making sure the unit was legal to sublet.

Customer :

I'm trying to keep my costs down as I'm single and this has cost a great deal already. How does small claims work? How long does it take to have a case heard? What documents do I need to bring...basically, I've never been in a situation like this and need to know how best to protect myself. Ideally I want to resolve it out of court, but I think I need to have the right paperwork, etc. to bring to the table.

Debra Thal (username) :

You can ask for a full refund. I don't think you will get it and I don't think a Court would order that as you did have somewhere to live but I think the Court would order that you receive a portion back because you could not enjoy the place.

Debra Thal (username) :

You can move out and the make your demands, in writing, and then sue if you have to.

Debra Thal (username) :

What I mean is that the storage costs should be paid for and the moving costs and the redirecting your mail and if you have to pay higher rent somewhere the until Sept 29 the difference should be paid to you as well.

Debra Thal (username) :

The real estate agent was not obliged to check to see if the tenant was able to lease the place or not. That is not her/his role.

Debra Thal (username) :

Let me find you the Court fees table.

Debra Thal (username) :

But if you win in Court the tenant will be order to pay them.

Debra Thal (username) :

ordered.

Debra Thal (username) :

Here is a link to all the information you will need, including the fees.

Debra Thal (username) :

http://www.attorneygeneral.jus.gov.on.ca/english/courts/guides/

Customer :

Sorry...I was away for the weekend. One more question. Do I have to let the tenant that I'm renting from know I'm moving or give then any notice?

Customer :

I've had another lawyer say the real estate agent is also at fault as they did not do their due diligence. They did not act in the best interest of the seller nor the buyer as per their covenant. That contradicts what you are noting, and makes me scratch my head. Can you confirm either way please?

Debra Thal (username) :

There is no one right or wrong answer.

Debra Thal (username) :

I gave you my answer before.

Debra Thal (username) :

I guess that's why there are lawyers and why we have jobs.

Debra Thal (username) :

We can and do argue for a living and there are different ways to look at it.

Debra Thal (username) :

In my view if someone hires and agent to lease their space the agent does not need to inquire as to the legalities of renting that space.

Debra Thal (username) :

I think you should let the tenant know you are moving out.

Expert TypeLawyer
Category: Canada Law
Pos. Feedback: 98.3 %
Accepts: 37499
Answered: 6/8/2012

Experience: Lawyer

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