Definitions
assignment of life lease: a life lease tenant gives all obligations and rights under a life lease to another person. Since the original tenant will not return to the rental unit, they give up all rights to occupy the rental unit for the rest of the life lease.
entrance fee: money that a tenant pays to a landlord or a trustee to become a tenant of a life lease unit. Entrance fees often range from $25,000 to $100,000, but can be higher or lower.
‘existing’ life lease complex: For the purposes of this brochure, a life lease complex where the landlord had entered into at least one life lease agreement before The Life Leases Act became law.
life lease: a written tenancy agreement that can be for the tenant’s lifetime or for a specific term (For example: 50 years). Under a life lease, a tenant pays an entrance fee for a rental unit. The tenant also pays rent each month to cover maintenance and other expenses.
mediation: a confidential process the Residential Tenancies Branch uses to help landlords and tenants discuss problems, think of possible solutions and reach their own agreements. Mediation can take place in meetings, conference calls or separate telephone conversations.
mortgage: a claim against property as a promise to pay; registered in the Land Titles Office.
‘new’ life lease complex: For the purposes of this brochure, a life lease complex where the landlord had not entered into any life lease agreements before The Life Leases Act became law.
non-profit landlord: Under The Life Leases Act, a non-profit landlord is a corporation that is registered with the Companies Office as a corporation without share capital. The directors of the corporation or the board don’t receive income from the life lease complex for their personal benefit. The directors don’t receive salaries; they may receive money to cover their reasonable expenses.
occupancy date: the first day of the month after the month in which an occupancy permit is issued for a complex.
occupancy permit: a permit issued by a city or municipality to indicate that a complex meets health and safety standards and is ready for tenants to occupy.
pre-lease payment: money a tenant pays to a landlord as “an expression of interest”.
refund fund: a fund the landlord sets up to refund tenants’ entrance fees when a tenancy ends.
reserve fund: a fund the landlord sets up to pay for repairing and replacing major items. For example: a roof, heating and plumbing systems, or parking facilities.
Residential Tenancies Branch: an office of the Manitoba government that administers the legislation governing residential tenants and landlords. When there is a dispute between a landlord and tenant, the Branch helps resolve it through investigation, mediation and/or issuing orders.
security deposit: money a tenant pays to a landlord before the start of a tenancy. A security deposit can’t be more than half of the first month’s rent. When a tenancy ends, a landlord may claim the security deposit for unpaid rent, damage, extraordinary cleaning costs or other obligation of the tenant. Some people refer to this money as a damage deposit.
The Life Leases Act: a statute that became law on December 1, 1999; the Act requires landlords to:
- provide tenants with specific information before they pay a pre-lease payment or an entrance fee;
- give tenants information about the financial status of their complex at least once a year;
- allow tenants to appoint tenant representatives to attend and participate in all board meetings of the landlord; and
- protect tenants’ funds.
The Residential Tenancies Act: a statute that sets out the obligations and rights of landlords and tenants, including landlords and tenants of life lease complexes.
trustee: for new life lease complexes, a trustee is someone the landlord appoints to:
- receive the entrance fees of the first tenants of a life lease complex and to pay them to the landlord to develop the complex
- possibly hold a refund fund to refund entrance fees to tenants at the end of a tenancy
- possibly hold a mortgage against the complex
A trustee is generally a trust corporation. A lawyer who is doing other legal work on the life lease project may act as a trustee to receive and pay out the entrance fees of the first tenants of the complex.
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