Tenants and Real Estate Sales: Obligations and Legal Risks

04/08/2024

Introduction

Recently, the court issued an important judgment in a case where tenants were ordered to pay $45,000 for obstructing the sale of a property owned by their landlord. This decision highlights tenants' obligations and the potential legal consequences when they attempt to sabotage a property sale. In this article, we will review the judgment and relevant Civil Code articles that outline tenants' rights and duties. If you find yourself in a similar situation or need a free property evaluation, don't hesitate to contact the Tardif Team, your Montreal real estate broker.

Case Summary

In the case at hand, tenants deliberately acted in ways that made the property less attractive to potential buyers, hoping to negatively impact the sale process. In response to this behavior, the court ordered the tenants to pay substantial compensation to the owner for the loss of property value and the costs incurred to address the situation.

Tenants' Obligations According to the Civil Code

The Civil Code of Quebec imposes several obligations on tenants, including not damaging the property and allowing the owner to sell the property without obstruction. Here are some relevant articles:

Article 1854

Article 1854 of the Civil Code stipulates that the tenant must use the rented property as a good family head and make reasonable use of it. This obligation includes adhering to conditions of use that do not affect the property's value.

"The tenant must use the rented property as a good family head and make reasonable use of it."

Article 1857

Article 1857 requires the tenant to allow the owner to visit the property, especially in the context of a sale. Therefore, tenants must cooperate so that the property can be shown to potential buyers.

"The tenant is required to allow the landlord to exercise their right of inspection under the conditions specified in the lease, particularly to facilitate the sale of the property."

Article 1870

Under Article 1870, the tenant is responsible for damages caused to the property by negligence or behavior. This includes actions that decrease the property’s value and affect the owner's ability to sell it at a fair price.

"The tenant is responsible for damages caused to the rented property unless they prove that the damages are due to a defect in the property or force majeure."

Risks of Attempting to Obstruct a Sale

Tenants who try to obstruct the sale of a property put themselves in a precarious position. Not only do they breach their contractual obligations, but they also expose themselves to legal action and financial penalties. Risks include:

1. Damages Award: As seen in the mentioned judgment, tenants may be ordered to pay damages to compensate for the loss of value and expenses incurred by the owner.

2. Eviction: In cases of disruptive behavior, owners may choose to terminate the lease and seek eviction of the tenants.

3. Credit Impact: Financial judgments can also affect tenants' credit records, making it more difficult to secure future rentals or loans.

Conclusion

The recent judgment underscores the importance for tenants to adhere to their obligations toward their landlord, particularly in the context of a property sale. Actions aimed at obstructing such a sale can have severe legal repercussions, and it is crucial for tenants to understand the implications of their actions.

At the Tardif Team, we are committed to providing clear legal advice and defending the rights of our clients, whether they are landlords or tenants. If you need a free property evaluation or are looking for a Montreal real estate broker, don’t hesitate to contact us.