Can anything be done?

[Anonymous]

For the last two years we have been renting a house in Okotoks and saving for a house to be built. We finally put a down payment on a house to be built and it will be complete the first week of November. However, now we have been notified that our landlord has lost the house we have been staying in, and we will have to vacate at the end of September. Is it possible to talk with the bank and stay the month and a bit until our house is complete or will we have to find something very short term?

There is a added complication as I work from home digitally and the contract I have isn't that sympathetic with this situation.

 

[moparcanuck]

Who notified you that you had to be out by the end of September and when were you notified? I've never looked specifically into a foreclosure type notice to vacate, but I believe when a house is sold, you have to be given 3 months notice, which would put you into November. Just make sure to pay the rent, etc properly during that time.

 

[Anonymous]

We were notifed by the lawyer of the bank that holds the mortgage on the house. And technically if the property was sold to another landlord we would get 3 months but the bank's agreement supersedes that of ours with the landlord. Thought maybe legally we could appeal to the bank to pay them rent so we could stay until the house was finished, but do not know. Also, just not seeing any kind of rentals for short term rents like that.

 

[Thomas Beyer]

[quote user=Cam]We were notifed by the lawyer of the bank that holds the mortgage on the house. And technically if the property was sold to another landlord we would get 3 months but the bank's agreement supersedes that of ours with the landlord.


Assuming you have a valid lease, in Alberta THREE MONTHS notice must be given .. either by existing owner or new one .. to my knowledge !! [but perhaps different rules apply for bankrupt landlords ?]



Ensure your lease is paid on time .. and you will be fine until late November .. i.e. notice given late August means: lease end late November !! You have rights as a tenant .. use them !!

 

[RedlineBrett]

I actually think it's three clear tenancy months - not 90 days to the day.



So if they gave you notice in early august you would have all of september / October / November to stay in the property.



If you contact service alberta they will point you to the right section of the landlord tenant act that deals with this and then you can forward it to the lawyer that served you the notice. If you make it apparant that you're going to fight this they'll back off.



I have a feeling that if you had to tell your story to a judge you're going to get your way in this case!

 

[Anonymous]

I phoned the Alberta Tenancy branch and they told me that because of the nature of the situation, that being a bankruptcy of the landlord and that the bank would be taking the property back. The agreements with the tenant and the landlord are considered null and void. The bank is within their right to say that we will have to get out within a month.



But I am hoping that we can deal with the bank to off set this a bit, just because there isn't really anyone that wants to rent on a very short term basis.

 

[bizaro86]

[quote user=Cam]For the last two years we have been renting a house in Okotoks and saving for a house to be built. We finally put a down payment on a house to be built and it will be complete the first week of November. However, now we have been notified that our landlord has lost the house we have been staying in, and we will have to vacate at the end of September. Is it possible to talk with the bank and stay the month and a bit until our house is complete or will we have to find something very short term? There is a added complication as I work from home digitally and the contract I have isn't that sympathetic with this situation.




That doesn't sound right to me. The folks at service alberta aren't perfect, I'd phone back and ask someone else the same question.



If you're talking to the bank's lawyer to try and get an extension, I'd consider making it clear that you plan to move out on XX day, without any hassle. And that alternatively, if he wants you to move out sooner, it'll be a very big hassle.



Regards,



Michael

 

[RedlineBrett]

Wow... well there you go learn something new every day. I really didn't think that would be the case. Sorry to hear about your troubles.

 

[Thomas Beyer]

[quote user=Cam]The agreements with the tenant and the landlord are considered null and void. The bank is within their right to say that we will have to get out within a month.


I find this interesting. Just because a landlord is bankrupt the bank has priority .. and the 3 months rule doesn't apply anymore ?



read this article here: http://www.mondaq.com/canada/article.asp?articleid=95724



Interesting ! Not as clear cut that you must move out immediately and that the 3 months rule may still apply !!



So, let's say you decide to not move out. The bank now has to apply to court to get you out. That will be a while .. a few days to a few weeks. You argue your case to a judge. You paid your rent. 3 months notice is the law. Likely the judge will argue that you can stay another few weeks.

 

[ToddStokowski]

Call Brendan at Capital Paralegal and he will let you know the Law and your options under the Law.

780-463-5155.



He's a good fellow.



Todd

 

[RedlineBrett]

I tend to agree with Thomas.. I just can't see a judge kicking out a tenant that's paid rent and siding with he bank over such a small time frame.



If the property has already been sold and there is a new buyer coming in however... that may be a bit different but most banks are putting vacant properties on the market totally winterized and everything.

 

[ToddStokowski]

Hi,

Can you let us know what you found out?

Todd

 

[Anonymous]

Ok, so we got the Bank's Lawyer to tell us who the contact at the bank is. And then we phoned the contact and explained the situation. The contact said that we could stay until the end of October as long as we issued a bank draft for the rent. Now the really clincher will be to see if Shane homes can get the house finished for the End of October. They said they could juggle around jobs that would be delayed because people where waiting for their homes to sell.



So here is a note, a bank will deal and I am thinking if we gave them money for November they would let us stay until we could move in too.



Never seen a bank refuse money.

 

[ToddStokowski]

Good show. Best of luck.

Todd

 

[acurAspec]

I'm surprised to read that no investors from here would be interested in this property? Perhaps this property could be selling at a deal and no one has suggested to buy it... Could this be another opportunity?



Sasha

 

[margaretcowan]

As well as extra money for the bank, you can also point out their security in the house would be protected if you were living there in October and November...assuming they don't sell it by then. Who wants to own a vacant house for a few months with winter coming on and with possible vandalism at an empty house. Plus the insurance company doesn't like a property vacant for more than 30 days.



The bank should be thankful you're there protecting their interests while they get the house sold.



Keep us posted! Bravo!

Margaret

Mama Margaret & Friends Cooking Adventures in Italy

www.italycookingschools.com

 

[Sherilynn]

Have you contacted the RTDRS? They often have slightly different answers than Landlord Tenant Advisory Boards do. Not sure if it will help, but you never know.