Court of Appeal Clears Way for Mortgagees to Set Aside Sham Tenancies
The Ontario Court of Appeal has ruled that a provision of the Mortgages Act (“MA”) which allows lenders to set aside tenancy agreements for the purpose of taking possession of real property does not conflict with the Residential Tenancies Act, 2006 (“RTA”) and can be used by lenders to set aside “sweetheart” tenancy agreements that are designed to discourage the lender from taking possession or adversely affecting the value of the lender’s interest in the property.
In the instant case, the TD Bank took a mortgage on a condominium unit in July, 2011. On November 1, 2012 the owner defaulted . . . [more]


