Buying, Selling & Leasing During the Pandemic
As the world is slowly seeing the POSITIVE RESULTS of Physical and Social Distancing, we all see how our country, province and city are putting into place new policies and guidelines, to ensure the safety of all its citizens. Restaurants, parks, and social gatherings are carefully accessible, although in reduced capacities.
What has not been updated or recently talked about is the way Buyers, Sellers, Landlords, Tenants, and ultimately their chosen representatives, namely Realtors, can conduct themselves.
At REC Canada, we are working hard to provide our Insiders with the information they need to transact safely during this COVID-19 State of Emergency.
As part of World Class Service promise, we adapted quickly and with conviction, using the example set by our colleagues in other progressive countries that were several weeks ahead in the fight against the Pandemic.
The use of videographers, virtual open houses, video conference business meeting, allowed all our clients with urgent business needs to conduct whole and profitable real estate transactions during stage one of Ontario’s re-opening.
On that note, I want to share with you a recent legal opinion that we have put together via the Ontario Real Estate Associations Legal Team on real estate showings.
Are Real Estate Showings Prohibited in Condominiums or Tenanted Properties?
It was recently brought to our attention that certain condominium buildings are refusing to permit real estate showings of listed properties.
Let us be clear. Both the Broker and Client should endeavour to use digital tools and remote interaction with the property wherever possible. However, if needed, we should all know that there are simply no prohibitions in Ontario law, including the State of Emergency Orders, against in-person showings.
In order for private showings to proceed they must comply with all recommendations, advice, directives and instructions from public health officials (including local public health officials), especially with respect to physical distancing, use of personal protective equipment (such as masks and gloves), cleaning and disinfecting before and after the showing.
Can a Tenant or Condo Manager Refuse a Showing?
Ontario’s Residential Tenancies Act, 2006 (the "RTA") provides landlords the rights to enter the rental unit in certain circumstances when the landlord follows the procedures set out in the "RTA".
Section 27(2) of the RTA provides that the landlord, or, with the landlord's written authorization, a broker or salesperson registered under the Real Estate and Business Brokers Act, 2002, may enter a rental unit provided that they have given written notice to the tenant at least 24 hours before they enter to allow a potential purchaser to view the unit.
In any case where at least 24 hours written notice has been given to the tenant, the written notice must set out:
The reason for entry;
The date the landlord will enter; and
The time of entry between 8:00 a.m. and 8:00 p.m.
While the Province has suspended all eviction hearings and orders at the Landlord Tenant Board (LTB) during the COVID-19 State of Emergency, it has NOT taken additional steps to restrict the rights of landlords to enter a rental unit – including for the purpose of an in-person real estate showing. Landlords continue to be legally permitted to enter a unit for the purposes outlined under section 27(2) of the RTA.
Both REC Canada and OREA strongly encourage landlords and our team of agents to work with their tenants to accommodate their needs, do virtual showings wherever possible and ensure they are not in the property during showings. No one with an underlying health condition should be forced to permit strangers into their home during the COVID-19 state of emergency. In these instances, it is critically important that all people involved in the said showing or transaction work proactively and positively with tenants to accommodate their concerns around health and safety.
Where in-person showings are essential, your REC Canada agent will ensure that they are wearing personal protective equipment, sanitizing surfaces after each showing, limiting the number of people in units and following all guidelines for stage one real estate transactions.
We will take every care not to put tenants at risk and to try and schedule showings to limit the amount of times people are going through the property. In particular, as your representative, we work with landlords to get to know the tenant and if they have any underlying health issues.
There are, however, some limitations on the ability to do showings of properties we should all be aware of. They include but are not limited to the following:
If the property is a condominium property, the owner of the property may be subject to condominium rules that prohibit real estate showings.
The Landlord Tenant Board has specifically contemplated showings of tenanted properties and noted that landlords are strongly advised to follow the guidance of the Real Estate Council of Ontario (RECO) and avoid in-person showings.
Even where there is permission pursuant to section 27(2) of the RTA, the Ontario Human Rights Code (HRC) still applies and requires accommodation for persons with disabilities. Persons with illnesses who could be endangered by an in-person showing should, in accordance with the Ontario HRC, be accommodated; and,
Commercial, institutional, and industrial tenancies have no specific permissions for landlords to conduct showings under the RTA and neither do owned or life lease residential properties.
If you have questions or comments about any of the above information please do not hesitate to reach out to our support team at info@reccanada.com or myself directly at simeon@reccanada.com
Thank you and stay safe everyone.
