The Court of Appeal for Ontario addressed the test for bad faith under s. 57(1)(b) of the Residential Tenancies Act, 2006 (RTA) and the potential liability of purchasers in "own use" evictions.
The Landlord and Tenant Board (Board) and Divisional Court had erred by unduly narrowing the bad faith assessment to the landlord's knowledge at the time of notice and by failing to consider the purchaser's good faith.
The Court held that the Board must consider all relevant evidence, including events after the notice, and assess the good faith of both the landlord and the purchaser.
The appeal was granted, and the matter remitted to the Board for redetermination.
