No Such Thing as Free Rent

No Such Thing as Free Rent

In a recent decision from the Ontario Court of Appeal (“ONCA“), Van Decker Estate v. Van Decker, 2022 ONCA 712, a residual beneficiary was ordered to pay occupation rent for occupying the estate property.

Mr. Decker was one of three residual beneficiaries of the estate. He alleged he had an interest in the property and refused to vacate the estate property. Mr. Decker resided at the estate property, together with his wife (together, the “Appellants“).

Despite repeated attempts from the Estate Trustee, the Appellants failed to provide any corroborating evidence of their alleged interest in the estate property. It is unclear how long the dispute lasted, however the estate had been receiving no income and the estate trustee was unable to sell the property while the dispute continued. As a result, the estate trustee was forced to bring a motion for directions.

The motion judge sided with the estate trustee. The Court found that the Appellants were not tenants and had no interest in the property of the estate. The Appellants were ordered to vacate the property and pay occupation rent of $2500 plus utilities per month until the date they vacate the property. The Appellants attempted requesting an adjournment, but it was refused.

On appeal, the Appellants argued the motion judge erred by failing to grant an adjournment, particularly given that they were self-represented. However, the ONCA was not persuaded. The appeal Court held there was no basis to interfere with the motion judge’s exercise of discretion in denying the requested adjournment. The Court stated that the delay in administering the estate caused undue prejudice to the other residual beneficiaries. In the end, the appeal was dismissed and the Appellants were ordered to pay for the estate trustees’ costs of the appeal out of their own share of the estate.

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