MONTREAL- Thousands of renters have been tempted by low interest rates to take the plunge into home ownership in the past few years, but, as one woman learned, leaving a lease can come with strings attached.

Harriet Hawthorne found herself trapped by a surprise bill months after she moved out of her West Island apartment.

Instead of renewing the 2008 lease or subletting, Hawthorne decided to transfer her lease, intended to transfer all rights and obligations to the new tenant.

The company that managed her apartment building, Immo Marketing, approved the transfer, said Hawthorne.

"They said I sent them everything, they faxed it back to me saying it's okay and approved," she said.

Two years after leaving the apartment, Hawthorne said she was hit with a shocking judgment from the Regie du logement, Quebec's rental board, indicating she owed $1500 in back rent.

"I wasn't called, or sent any letter or anything, so I didn't even know about it at all," said Hawthorne.

Hawthorne called Immo Marketing, who told her they no longer had the lease transfer documents.

There could be several reasons, explained Gabriel Therrien of Immo Marketing.

 

"She didn't send the lease transfer by registered mail," said Therrien. "Maybe she gave it to the janitor or the person in charge of the building but not at the office."

Once Hawthorne faxed her copies of the lease transfer to the Immo Marketing, they decided to chase the tenant responsible.

Hawthorne is now financially off the hook, but the rental board's judgment against her is still in effect, and will remain on file for ten years.

That judgment can be removed from her record, but at a cost, said the Regie du logement's Jean-Pierre Leblanc.

"They have to use la Regie to revoke the judgment or they have to live with it," said Leblanc. "It's $64 to file, but if they win, it's paid by the other party."

Hawthorne says she will file the paperwork to clear her name, forcing Immo Marketing to pay that small fee, even though she's unlikely to rent again.

"I've always been a good tenant," said Hawthorne.

What precautions should renters take when transferring a lease?

  • The Regie du logement provides sample forms for tenants and landlords, available here.
  • Advise your landlord in writing of the name and address of the person taking over, both for a lease transfer and a sublet.
  • Ensure your landlord has received that information.
  • Subletters remain responsible for all the conditions of the lease.