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ARTICLE · 30 MAY 2025

Multi-Residential Lending: Navigating Tenant Protection Laws And Recent Case Developments

Gardiner Roberts LLP
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Lending on multi-residential properties in Ontario presents unique challenges that go beyond the physical asset.

CanadaReal Estate and Construction
Zev Zlotnick
Zev Zlotnick
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Lending on multi-residential properties in Ontario presents unique challenges that go beyond the physical asset. A critical factor for lenders is the impact of tenant protection laws, primarily governed by the Residential Tenancies Act, 2006 ("RTA"), which imposes significant rights and obligations on landlords and tenants. Unlike commercial lending, lenders who take possession of a multi-residential property may find themselves stepping into the role of a landlord, with corresponding legal duties and liabilities.

A recent case highlighting these issues is Toronto Standard Condominium Corp. No. 2065 v. Sinclair, where the court clarified that a lender exercising control over a residential rental property can be deemed a landlord under the RTA. This means that, upon enforcement, the lender must comply with tenant protection rules including rent collection, maintenance obligations, and restrictions on eviction. Non-compliance can lead to regulatory penalties and

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