Last month, the Government of British Columbia changed its policy of requiring landlords and homebuyers to give rental housing tenants four months’ notice instead of two months for personal or caretaker uses. The dispute period — the amount of time a tenant can challenge a formal Notice to End Tenancy — was also increased from 15 days to 30 days.
These changes were intended to give existing tenants more time to find a new home, but industry stakeholders have deemed them problematic.
As a result, the provincial government announced amendments to this new policy today that will require a three-month notice — not four months — for scenarios when a landlord issues a Notice to End Tenancy on behalf of the purchaser following an acquisition.
Additionally, the dispute period will now be 21 days, not 30 days, following such ownership changes.
According to the provincial government’s bulletin today, they received input that the previous four-month notice period could impact first-time homebuyers’ eligibility to mortgages and the federal government’s Canada Mortgage and Housing Corporation (CMCH) programs.
More specifically, it could prevent first-time buyers from buying a tenanted property, as CMHC programs require the property to be vacant upon possession. The longer four-month notice period may also not align with the purchasers’ mortgage commitment, which could expire before the closing date.
“There is a CHMC requirement that purchasers with insured mortgages must take possession upon closing, which requires vacancy of the property. The extended notice period could have an impact on this requirement and potentially disqualify them from financing,” reads the bulletin.
However, the newly implemented policy of a four-month notice and 30-day dispute period still applies to evictions based on having the landlord’s close family members move into the property, which is intended to deter bad faith evictions. Moreover, the family member must occupy the home for at least 12 months, and landlords caught evicting in bad faith could be ordered to pay the displaced tenant 12 months’ rent.
The provincial government has created a new online platform specifically for landlords to issue formal notices to end tenancies for personal use.