Article 1955 C.c.Q.: New Building Under 5 Years Old: Clause F

Neither the lessor nor the lessee of a dwelling leased by a housing cooperative may apply to the court to have the rent fixed or any other condition of the lease modified. Similarly, the lessor or the lessee of a dwelling situated in a recently erected immovable or an immovable used for rental as a result of a recent change of destination may not pursue such a remedy within five years after the date on which the immovable is ready for its intended use. Those restrictions may not be set up by the lessor against the lessee unless they are set out in the lease and, in the case of a dwelling referred to in the second paragraph, unless the lease indicates the maximum rent that the lessor may impose in the five years after the date on which the immovable is ready for its intended use. The above rules do not apply in the case of a dwelling that has been the subject of a change of destination referred to in article 1955.1.

Civil Code of Québec, art. 1955 C.c.Q.

What this article means

Article 1955 creates two exceptions to rent fixing by the Tribunal administratif du logement. The first covers dwellings leased by a housing cooperative: neither the landlord nor the tenant may ask the tribunal to fix the rent or modify the lease conditions. The second covers recently erected buildings and buildings whose rental use results from a recent change of destination: for five years after the date the building is ready for its intended use, the rent-fixing remedy is not available. This is the well-known "Clause F," named after section F of the mandatory lease form where the restriction must appear.

Since the amendments brought by Bill 31 (2024), the restriction can only be set up against the tenant if two conditions are met: it must be set out in the lease and, for a new building or change of destination, the lease must indicate the maximum rent the landlord may impose during the five-year period. A section F that is checked off but silent on the maximum rent is no longer enough: the landlord then loses the benefit of the exception and the tenant keeps the right to have the rent fixed.

The practical stakes are high: in a dwelling validly covered by Clause F, a tenant who refuses a rent increase cannot stay put and force the tribunal to fix the rent. Article 1945 provides that the tenant must then leave the dwelling at the end of the lease. Checking whether Clause F is valid is therefore often the first step in analyzing an increase in a recent building.

What it means for you

If you are a tenant

If you receive a rent increase notice in a recent building, check section F of your lease before concluding you have no options. To be enforceable against you, the restriction must be written there and, since Bill 31, the lease must state the maximum rent the landlord can charge during the five years. If section F is blank, incomplete, or missing the maximum rent, you keep your right to refuse the increase and let the landlord apply to the tribunal.

If Clause F is valid, weigh the consequences before refusing: in a dwelling covered by article 1955, refusing the changes means you will have to leave at the end of the lease. Also verify the date the building was ready for use: the restriction expires five years after that date, not five years after you moved in.

If you are a landlord

Clause F is a real advantage for a new building, but it is not presumed: it must be expressly set out in the lease and, since Bill 31, you must indicate the maximum rent you may impose during the five years following the date the building is ready. Omitting the maximum rent costs you the benefit of the exception: the tenant can then refuse the increase and you will have to go through rent fixing at the tribunal.

Document the date the building was ready for its intended use: that date starts the five-year clock. Once the period ends, the normal rent-fixing regime applies again and your increases can be contested through the usual procedure.

Related articles

• Article 1941 C.c.Q.: Automatic Lease Renewal
• Article 1942 C.c.Q.: Notice of Modification to the Lease
• Article 1945 C.c.Q.: Tenant's Deadline to Respond to a Notice of Modification
• Article 1947 C.c.Q.: Having the Rent Set by the Tribunal
• Article 1950 C.c.Q.: New Tenant: Right to Have the Rent Set
• Article 1953 C.c.Q.: Criteria for Setting the Rent
• Article 1946 C.c.Q.: Tenant's Right to End the Lease When No Notice of Modification Was Received
• Article 1906 C.c.Q.: Rent Adjustment Clauses Without Effect
• Article 1938 C.c.Q.: Right to Stay for a Spouse, a Relative, or After a Death