Understanding the Ontario Payment Agreement Form for Rental Housing (English / French)

Understanding the Ontario Payment Agreement Form for Rental Housing

The Payment Agreement form provided by the King's Printer for Ontario is an official document designed to help landlords and tenants resolve rent arrears issues before a formal hearing takes place at the Landlord and Tenant Board (LTB). This form is essential for those involved in rent disputes who wish to reach a mutually agreed-upon repayment plan, avoiding the need for a contested hearing.

Who Should Use the Payment Agreement Form?

This form is intended for landlords and tenants involved in applications related to rent arrears, specifically:

• L1 application: Application to Evict a Tenant for Non-payment of Rent and to Collect Rent Owed
• L9 application: Application to Collect Rent the Tenant Owes

Both parties must agree to the terms outlined in the form for it to be valid. If an agreement cannot be reached, the case will proceed to a hearing where a Board Member will issue a decision.

How to Complete the Payment Agreement Form

Before filling out the form, it is advisable to review all the information carefully and consider seeking legal advice. The form requires details such as:

• The total rent owed up to the date of signing
• Any NSF (non-sufficient funds) bank charges and related administrative fees
• The application filing fee paid by the landlord
• Any future rent payments due during the agreement period (applicable only for L1 applications)
• An agreement on whether the landlord can proceed with eviction if the tenant misses or is late with a payment (applicable only for L1 applications)

Both the landlord and tenant must sign the form to make it legally binding. It is important to ensure that all terms are agreed upon and correctly filled out to avoid misunderstandings or future disputes.

Required Documents and Submission Process

There are no specific documents to attach when submitting this form, but it is crucial that both parties sign it before submission. Once completed, the signed form should be sent immediately to the local LTB Regional Office via email, mail, or upload through the Tribunal Ontario portal (TOP).

Timely submission is vital; submitting the form close to the scheduled hearing may limit the Board’s ability to issue a consent order before the hearing date. If the form is submitted too late, the hearing will proceed as scheduled, and attendance is mandatory for both parties.

What Happens After Filing the Agreement?

The Board will review the submitted Payment Agreement and decide whether to issue a consent order. If approved, the hearing will be canceled, and the agreement becomes a formal order. If not, the scheduled hearing will proceed, and both parties must attend.

In cases where a consent order is issued, either party can request to reopen the case within 30 days if they believe:

• The other party coerced them into signing, or
• They were misled intentionally with false or misleading information that materially affected the agreement.

If the tenant fails to meet the repayment terms, the landlord can request the Board to reopen the case within 30 days of the missed payment and seek further action, such as eviction, if applicable.

Important Considerations for Tenants

Tenants should be aware that if they agree to the terms allowing eviction for missed payments, the landlord can file a new application without prior notice or hearing. The Board may issue an eviction order based solely on the agreement and the landlord’s application. Tenants have the right to challenge such orders by filing a motion within 10 days of the eviction order to request a hearing.

Summary

The Ontario Payment Agreement form is a practical tool to settle rent arrears issues amicably and avoid lengthy disputes. Both landlords and tenants are encouraged to review all terms carefully, ensure all signatures are obtained, and submit the form promptly to the LTB. Following this process helps to maintain a clear and legally binding resolution, reducing uncertainty and promoting fair housing practices.