Canadian Lawyer

June 2015

The most widely read magazine for Canadian lawyers

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w w w . C A N A D I A N L a w y e r m a g . c o m J U N E 2 0 1 5 23 As Phil Dougan, of Vancouver's Access Law Group, examines the fine print on Airbnb's web site, he concludes people look- ing to earn some money through nightly rentals of their home or room are taking on "an unbelievable risk" in terms of liability as well as protection of their own property. He suggests there is widespread concern on the municipal level but in British Columbia only Tofino has addressed the issue. There, short-term leases are permitted providing the host has a business licence, has had the premises inspected, and the host must be present during visitors' stays. Condo corporations in Alberta have no ability to restrict leasing under the prov- ince's Condominium Property Act and may well have to rely upon commercial restric- tion prohibitions in place in most condo corporations' bylaws to counter short-term rentals. However, attempts to use condo units as timeshare condominiums have been disallowed. "It's clearly the old com- mon law principle that your home is your castle and you can't restrict one's right to sell, lease, or otherwise deal with the prop- erty, which is known as the right to alienate your property. I think you have to estab- lish that you're using your residential unit for commercial purposes, contrary to the bylaws, before the court," says Jamie Polley, of McLeod Law LLP. Another possible rem- edy under Alberta legislation is improper conduct in the event of an owner allowing disruptive tenants to occupy a unit. While there is a potential business model in short-term leases or overnight stays in complexes designated for that use, residential units are not the place for them, says David Hutniak, CEO of Landlord BC, which represents owners of rental housing. The bottom line, he says, is that landlords really have to pay attention and be involved in their properties if they don't want them to be used for short-term rentals. Vancouver prohibits rentals under 30 days in multi-unit residential buildings and that, says Hutniak, is sufficient protection for the landlords. It also means that land- lords, too, are prevented from renting their spaces out for a night or two. Attention has also turned to the leas- es. There is potential to broaden them and explicitly prohibit short-term leases, although subletting is typically already addressed in standard agreements. Airbnb has been actively defending its interests worldwide — it has listings in 34,000 cities. In Quebec, where Montreal's hotel and bed and breakfast organizations have been pushing for restrictions, Airbnb has been actively lobbying the government. "We are already having productive discus- sions with governments in Canada about home sharing, highlighting the benefits it brings for hosts, for guests, and for local economies," says Peter Huntingford, the company's public affairs manager. "More and more cities are embracing home shar- ing and we look forward to working with everyone on fair rules that back local residents and support innovation. Cities like London, Paris, and Amsterdam have already made great progress in this area and we are optimistic that Canada's cities can join them." Huntingford describes existing laws as "sometimes outdated and unclear" but adds the company encourages users to comply with local rules and posts a responsible host- ing page with information and resources. A legal classic for your bankruptcy and insolvency practice Always up to date – two editions a year The Annotated Bankruptcy and Insolvency Act continues to be the resource you can rely on for authoritative guidance and current law and policy at a moment's notice. This practical softcover is a condensed version of the five-volume classic Bankruptcy and Insolvency Law of Canada, 4th Edition. It's the perfect quick reference you can rely on for immediate access to primary law and concise commentary. New in this edition This release keeps you current with updated legislation and also includes, but is not limited to, the following recent case law dealing with the Bankruptcy and Insolvency Act and Companies' Creditors Arrangement Act: • 620369 Ontario Inc. v. Alumpro Building Products Plus Inc. (2014) • Alberta Treasury Branches v. Elaborate Homes Ltd. (2014) • Bath v. Canadian Western Bank (2014) • Blue Steel Investments LLC v. Hegco Canada Inc. (2014) • D'Addario v. Ernst & Young Inc. (2014) New Edition The 2015 Annotated Bankruptcy and Insolvency Act The Late Honourable Mr. Justice Lloyd W. Houlden, Mr. Justice Geoffrey B. Morawetz, and Dr. Janis P. Sarra, LL.B., LL.M., S.J.D. Order # 986541-65203 $184 Softcover May 2015 approx. 1890 pages Biannual volumes supplied on standing order subscription 978-0-7798-6541-3 Shipping and handling are extra. Price(s) subject to change without notice and subject to applicable taxes. 00229LQ-A49944 Available risk-free for 30 days Order online: www.carswell.com Call Toll-Free: 1-800-387-5164 In Toronto: 416-609-3800

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