Can a Tenant Avoid Eviction by Refusing Compensation?
No. A tenant cannot prevent an eviction simply by refusing to accept the compensation that a landlord is legally required to provide.
Ontario law recognizes that tenants should not be able to block a valid eviction process by declining payment. If you are dealing with a situation where compensation has been refused, Babbar Legal can help ensure your obligations are properly met and your application is not jeopardized.
Compensation Is Required in “Own Use” Evictions
When a landlord seeks to evict a tenant for personal use—or on behalf of a purchaser who intends to move in—the Residential Tenancies Act, 2006 requires that the tenant be compensated.
This typically involves:
- Payment equal to one month’s rent, or
- Offering another acceptable rental unit
This requirement applies whether the unit is being taken over by:
- The landlord
- A qualifying family member
- A purchaser of the property
The obligation to provide compensation is mandatory and must be satisfied as part of the eviction process.
What If the Tenant Refuses the Payment?
A tenant cannot defeat the eviction process by simply refusing to accept the compensation.
In Thambiappah v. Subramanian (2021 CanLII 110523), the Landlord and Tenant Board confirmed that:
- A landlord meets their obligation by making a genuine effort to provide the payment
- A tenant’s refusal to accept funds does not mean the landlord has failed to comply
The Board compared refusing an e-transfer to choosing not to cash a cheque. In both cases, the landlord has still fulfilled their obligation.
Allowing tenants to avoid eviction by rejecting payment would undermine the legal process, and the law does not permit that outcome.
What Landlords Should Do
Although refusal does not invalidate the process, landlords must still act reasonably and in good faith.
This means:
- Making a clear and documented attempt to provide the payment
- Using a reliable method (such as e-transfer or cheque)
- Taking additional steps if the payment is returned or not accepted
Proper documentation is key. If the matter proceeds to a hearing, the landlord must be able to show that the compensation was offered appropriately.
Why This Matters
Evictions for personal use are closely reviewed by the Landlord and Tenant Board. Even small procedural issues can delay or derail an application.
Ensuring that compensation requirements are properly handled—and clearly documented—helps avoid unnecessary disputes and strengthens the landlord’s position.
Final Thoughts
While tenants are entitled to compensation in “own use” evictions, they cannot use refusal of that compensation as a strategy to stop the process.
As long as the landlord has made a genuine and reasonable effort to provide the required payment, the legal obligation is considered satisfied.
If you are navigating an eviction and want to ensure every step is handled correctly, Babbar Legal can provide practical guidance to help protect your position and move the process forward with confidence.