April 3rd, 2023 at 2:57 pm
Multiple Choice Question: Can the landlord cancel the lease agreement? Pick the best answer:
A. Yes, because the tenant has breached the lease.
B. Yes, after serving a 3-day Notice to Pay or Quit.
C. Yes, after serving a 2-day Notice to Pay.
D. No.
Answer: Answer A is not the best answer. The RLMM says that, if, by the commencement date, the tenant has not paid all amounts that have already come due, the agreement is voidable at the landlord’s option after first serving the tenant with a Notice to Pay (see paragraph 2 of the RLMM).
Answer B is wrong. When a tenant fails to pay rent, a 3-day Notice to Pay or Quit must generally be served before the landlord can commence the eviction process. But the purpose of an eviction proceeding is for a landlord to regain possession of the premises. In our situation, the tenant does not have possession yet.
Answer C is the best answer. According to the RLMM, the required Notice to Pay for voiding the lease must be served 2 calendar days before the landlord can cancel. For the 2-day notice, you can use C.A.R.’s standard-form Landlord Pre-Possession Notice to Tenant to Pay (PPN). For the subsequent cancellation, you can use C.A.R.’s standard-form Cancellation of Lease or Rental (CLR).
Answer C is better than Answer A because doing the PPN and CLR arms the landlord with documentation proving that the landlord has properly voided the lease in the manner set forth in the RLMM. However, in some instances, a landlord may want to hold the tenant in breach of the lease, rather than void the lease, probably in hopes of recovering monetary damages against the tenant. That would become a more complicated legal matter. If that is nevertheless what the landlord wants to do, make sure that you inform the landlord in writing that would be something that the landlord must handle, not us, and that we strongly recommend that the landlord consults with the landlord’s own attorney concerning such matter as the landlord deems appropriate.
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