Real Estate

Horrible situation : Landlord has to sell his house & his mom’s house due to unpaid rent

  • Last Updated:
  • May 27th, 2021 8:05 pm
6 replies
Deal Fanatic
Jul 3, 2011
6517 posts
3798 upvotes
Thornhill
Right!

While I feel for landlords who through no fault of their own are caught between a rock and a hard place with this LTB which has to rank amongst the worst government agencies in this province, story 1 is sorely lacking relevant facts that the readers are owed:

He is paying both his and his mother's mortgage which he can't continue to do. Who was going to be paying his mother's mortgage otherwise? Was the plan always to sell her house anyway?

If he had either a lawyer or realtor guiding his purchase and advising him about the tenancy mid pandemic when he made the purchase, did they warn him of the risks of the tenant not leaving or advise him to not close unless they do, or extend closing, or did he assume the tenant? If he did have any such person guiding him and they did not guide him properly - they might want to look into suing them for negligence and breach of fiduciary duty! If he made an informed decision - he is suffering the consequence of his own mistake.
Sr. Member
Aug 17, 2018
639 posts
1155 upvotes
This truly sucks and I feel for the family.

They seem to have missed a couple of red flags though and took risks that they could have avoided, especially in the first case.

Never buy a tenanted home in a market that heavily favors renters. You are just asking for trouble here and have virtually no assurances that the tenant actually leaves.
Also have emergency funds if you buy a 1MM+ home of at least 50k. It sounds like there was no loss of any income besides the rent that they did not account for in the first place as they wanted to move into that home and they now stay with his mom. Not being able to accommodate for that shows that they were likely overleveraged.
Sr. Member
Aug 17, 2018
639 posts
1155 upvotes
licenced wrote: Right!

While I feel for landlords who through no fault of their own are caught between a rock and a hard place with this LTB which has to rank amongst the worst government agencies in this province, story 1 is sorely lacking relevant facts that the readers are owed:

He is paying both his and his mother's mortgage which he can't continue to do. Who was going to be paying his mother's mortgage otherwise? Was the plan always to sell her house anyway?

If he had either a lawyer or realtor guiding his purchase and advising him about the tenancy mid pandemic when he made the purchase, did they warn him of the risks of the tenant not leaving or advise him to not close unless they do, or extend closing, or did he assume the tenant? If he did have any such person guiding him and they did not guide him properly - they might want to look into suing them for negligence and breach of fiduciary duty! If he made an informed decision - he is suffering the consequence of his own mistake.
Exactly. I do not quite get that either. The expenses have not changed because of the renter staying in his home as his family is staying at his mom's place. Someone must have paid his mom's home before as well and he would always have to pay his own mortgage anyway. Maybe the plan was to have his mom move in with him into the new place and sell his mom's home, but nothing like that is mentioned in the story.
Deal Addict
May 12, 2014
3487 posts
3895 upvotes
Montreal
Mosho1 wrote: they did for a month or so between lockdowns but there's still an eviction ban that has been in effect for most of the pandemic
That is very strange. In Quebec the court situation was back to normal (both process, and delays) around June or July last year and has seen no further stoppages, even during our 2nd and 3rd waves.
Deal Addict
Jun 13, 2009
1209 posts
983 upvotes
Toronto
It truly sucks when a tenant stops paying rent and nothing can be done about it. But this is also a perfect example why you should not be overleveraged to the max. If $10,000 is enough to break you, even 50, you are way in over your head.

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