Tenancies and Distress for Rent Act

CHAPTER 464

OF THE

REVISED STATUTES, 1989

amended 1995-96, c. 13, s. 86; 2006, c. 10, s. 7

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An Act Respecting
Tenancies and Distress for Rent

Short title

1 This Act may be cited as the Tenancies and Distress for Rent Act. R.S., c. 464, s. 1.

DISTRESS FOR RENT

Condition for distress for rent

2 No distress for rent shall be made unless there is an actual demise at a specific rent. R.S., c. 464, s. 2.

PROCEDURE ON DISTRESS

Bonding and treatment of goods

3 (1) Where goods are distrained for rent reserved and due upon any demise, lease or contract, if the tenant or owner of the goods does not, within five days next after the distress taken, and after notice thereof stating the cause of such taking has been served upon him, or posted up in a conspicuous place on the premises charged with such rent, replevy the same, the landlord may cause the goods so distrained to be appraised by two sworn appraisers.

(2) Before the sheriff replevies he shall take a bond in double the value of the goods sought to be replevied.

(3) The appraisers may be sworn before a justice of the peace, the sheriff or his deputy, a constable or a commissioner of the Supreme Court.

(4) The goods so distrained may be impounded or otherwise secured in such place, or on such part of the premises charged with the rent as it is most fit and convenient, or may be removed to another place.

(5) The landlord shall have the option to remove the goods to another place of impounding or security, and to sell and dispose of the same after appraisal and notice, otherwise than on the premises. R.S., c. 464, s. 3.

Sale and proceeds of sale

4 (1) Subject to Section 5, after the appraisement of the goods the landlord shall, after giving five days notice of sale by handbills posted in at least five conspicuous places in the locality in which the sale is to take place, sell such goods on the premises, or at such other place, for the best price to be gotten therefor, and shall apply the proceeds of the sale towards satisfaction of the rent due and expenses incurred, and shall pay the surplus, if any, to the owner of the goods.

(2) Notwithstanding subsection (1), the tenant or any person claiming an interest in any goods to be sold at the sale may, at any time before the sale, commence a proceeding for a declaration that a person other than the tenant has an interest in the goods and defining the nature of that interest.

(3) Notwithstanding that the landlord is not conducting the sale, he may be the defendant in the proceeding.

(4) The proceeding shall be deemed to be a proceeding within the meaning of the Civil Procedure Rules and shall be commenced and tried in the county court for the district in which the sale is to be held, except as otherwise provided by this Act.

(5) Upon application of a party to the proceeding, a judge of the court may, by order, and without first determining whether the interest claimed in the proceeding actually exists, stay the sale of any goods pursuant to subsection (1).

(6) An application pursuant to subsection (5) may be made ex parte.

(7) The judge may grant an order pursuant to subsection (5), subject to such terms and conditions as he thinks just.

(8) If any goods to which the order relates are sold at the sale, and the defendant is served with a true copy of the order before the sale, the defendant shall be deemed to have committed a wrongful distraint on the goods.

(9) The judge may, on the application of any party to the proceeding, vary or rescind the order, subject to such terms and conditions which he thinks just.

(10) If the final order in the proceeding declares that the plaintiff has an interest in the goods, and declares the nature of that interest, that interest shall, so long as the order is in force, be exempt from the distress pursuant to which the sale was intended to be held. R.S., c. 464, s. 4.

Third party may stop sale of goods

5 (1) Where a person other than the tenant claims an interest in goods which are not exempt from distress and which are to be sold pursuant to subsection (1) of Section 4, and prior to the sale presents a claim specifying the nature of that interest to the person who is or will be conducting the sale as bailiff, showing reasonable proof that such an interest may exist, the goods may not be sold at sale except in accordance with this Section.

(2) Where goods are not sold by reason of a person making a claim pursuant to subsection (1), the person who is or will be conducting the sale as bailiff shall forthwith notify the landlord and the landlord may, within thirty days after the date on which the sale was to be held, commence a proceeding against that person, as defendant, for a declaration that the interest claimed does not exist.

(3) The proceeding shall be deemed to be a proceeding within the meaning of the Civil Procedure Rules and shall be commenced and tried in the county court for the district in which the sale was to have been held and in accordance with the ordinary procedure of that court.

(4) Where the court declares that the interest claimed by the defendant does not exist, the goods may be sold in accordance with Section 4 after any appeal taken in the proceeding has been finally determined and no further appeal may be taken, or where no appeal has been taken, after the time for taking an appeal in the proceeding has expired.

(5) Where the final order in the proceedings declares that the interest claimed by the defendant does exist, the goods may be sold subject to that interest or dealt with as the court orders.

(6) Where the landlord, within the time set forth in subsection (2), does not commence a proceeding against the person claiming the interest referred to in subsection (1), the person who is or will be conducting the sale shall give effect to the claim of that person.

(7) Notwithstanding anything contained in this Section, a sale which does not comply with this Section does not affect the title of

(a) a person who purchases goods at the sale in good faith without notice that a person other than the tenant claims an interest in the goods; or

(b) any person who subsequently acquires the goods or any interest in the goods in good faith without notice of the claim, whether or not the purchaser at the sale had notice of the claim when he purchased the goods at the sale. R.S., c. 464, s. 5.

UNTHRESHED GRAIN AND HAY

Unthreshed grain or hay

6 Sheaves or cocks of grain, grain loose or in the straw, hay in a barn or upon a hovel, stack or rick, or upon the land charged with such rent, may be locked up or detained upon the premises by a landlord having rent in arrear and due, for or in the nature of a distress, until the same are replevied or sold, as in the case of other goods, but they shall not be removed from the premises by the landlord, to the damage of the owner, before such sale. R.S., c. 464, s. 6.

GROWING CROPS

Treatment of growing crops

7 (1) All sorts of corn, grain, grass, hops, roots, fruits, pulse or other product growing on any part of the premises demised, may be seized as a distress for rent in arrear and due, and the landlord may cut, gather, cure, carry and lay up the same, when ripe, in barns and other places, on such premises.

(2) If there is no barn or proper place on the premises for receiving the same, then he may cause the same to be placed in any barn or proper place to be procured as near as may be to the premises, and in convenient time shall appraise and dispose of the same towards satisfaction of the rents and the charges of such distress, as in other cases.

(3) The appraisement shall be made after the crop is cut, cured and gathered, and not before.

(4) Notice of the place where the goods so distrained are placed shall, within one week after their being so placed, be given to the tenant or left at his last place of abode. R.S., c. 464, s. 7.

CATTLE ON COMMON

Seizure of cattle

8 Any cattle or stock of the tenant feeding upon any common belonging to any part of the premises demised may be seized as a distress for rent in arrear and due. R.S., c. 464, s. 8.

PRIORITIES

Priority over security interest

8A (1) In this Section,

(a) "collateral" means personal property in which a security interest is taken;

(b) "perfected" has the same meaning as in the Personal Property Security Act;

(c) "proceeds" means proceeds as defined in the Personal Property Security Act;

(d) "purchase money security interest" means

but does not include an interest of a lessor under a transaction of sale by and lease back to the seller;

(e) "security interest" means an interest in personal property that secures payment or performance of an obligation.

(2) A distress for rent has priority over

(a) a security interest in the goods of the tenant other than a purchase money security interest in goods or proceeds of those goods that is perfected at the date of the distress;

(b) the interest of a judgment creditor of the tenant under Section 2B of the Creditors' Relief Act.

(3) Nothing in subsection (2) shall be construed as affecting or limiting the priorities that a distress for rent had immediately prior to the coming into force of this Section. 1995-96, c. 13, s. 86.

EXEMPTION FROM DISTRESS

Exemptions from distress for rent

9 (1) Goods brought upon or into any building used as a market bona fide for the purpose of sale, by any person or persons, not being the property of the tenant, or property in which the tenant is interested, shall be exempt from distress for rent and also any articles which shall at any time by any Act of the Legislature be declared exempt from levy under execution.

(2) The following articles shall also be exempt from distress for rent:

(a) the necessary wearing apparel, beds, bedding and bedsteads of the debtor and his family;

(b) one stove and pipe therefor, one crane and its appendages, one pair andirons, one set of cooking utensils, one pair of tongs, six knives, six forks, six plates, six tea cups, six saucers, one shovel, one table, six chairs, one milk jug, one teapot, six spoons, one spinning wheel, one weaving loom, one sewing machine, if in ordinary domestic use, ten volumes of religious books, one water bucket, one axe, one saw, and such fishing nets as are in common use, the value of such nets not to exceed twenty dollars;

(c) all necessary fuel, meat, fish, flour and vegetables, actually provided for family use, not more than sufficient for the ordinary consumption of the debtor and his family for thirty days, and not exceeding in value the sum of forty dollars;

(d) one cow, two sheep and one hog, and food therefor for thirty days;

(e) tools, and implements of, or chattels ordinarily used in, the debtor's occupation, to the value of thirty dollars;

(f) all articles or goods in the possession of the tenant and held by the tenant under a duly filed agreement for hire, lease, contract or conditional sale, saving and excepting the interest of the tenant in any such articles or goods. R.S., c. 464, s. 9.

POUND-BREACH AND
IRREGULARITIES IN DISTRESS

Remedy where pound-breach

10 Upon any pound-breach and rescue of goods distrained for rent, the person aggrieved thereby may recover his damages against the offender, or against the owner of the goods distrained, if the same are afterwards found to have come to his use or possession. R.S., c. 464, s. 10.

Remedy where sale made and rent not in arrear

11 Where any distress and sale are made by any person for rent where none is in arrear, the owner of the goods distrained, his executors and administrators may, by suit, recover against the persons distraining, or any of them, his or their executors or administrators, the value of the goods distrained, and such further damages as may be awarded. R.S., c. 464, s. 11.

Remedy for irregularity after distress

12 Where a distress is made for any kind of rent justly due, and any irregularity or unlawful act is afterwards done by the person distraining, or by his agent, the distress itself shall not be therefore deemed to be unlawful, nor the person making it to be a trespasser ab initio, but the person aggrieved by such unlawful act or irregularity may recover full satisfaction for the special damage he has sustained thereby, and no more, provided, that no tenant or lessee shall recover in any action for any such unlawful act or irregularity as aforesaid, if tender of amends is made by the person distraining, or his agent, before the action is brought. R.S., c. 464, s. 12.

CLANDESTINE REMOVAL

Goods clandestinely removed

13 If any lessee of any messuage, land or tenement, upon the demise whereof any rent is in arrear and due, fraudulently or clandestinely conveys from such demised premises his goods, with intent to prevent the landlord distraining the same, such landlord, by himself or his servants, may, within twenty-one days then next ensuing such conveying away, seize such goods, wherever found, as a distress for such rent, and dispose of the same as if they had been distrained upon the premises, unless such goods are sold in good faith and for a valuable consideration before such seizure, in which case they shall not be liable to a distress. R.S., c. 464, s. 13.

Goods clandestinely removed and secured

14 (1) Where any goods fraudulently or clandestinely conveyed from any demised premises are placed or kept in any house, barn, stable, outhouse, yard, close or place, locked up or otherwise secured, so as to prevent such goods from being taken as a distress for rent in arrear and due, it shall be lawful for the landlord, or lessor, or the agents or servants of either, to take as a distress for rent such goods.

(2) In such case he or they shall call to their assistance a constable for the city, town or county in which the goods are suspected to be so placed or kept, and such constable is required to aid and assist in such taking.

(3) It shall be lawful for them, in the daytime, to break open and enter into such house, barn, stable, outhouse, yard, close and place, and take such goods for the rent so due and in arrear. R.S., c. 464, s. 14.

DISTRESS AFTER DETERMINATION OF TERM

Time limit for distress after certain leases determine

15 Rent in arrear and due upon a lease for life or lives, or for years or at will, ended or determined, may be distrained for after such determination in the same way as if the lease was not ended or determined, if the distress is made within six months after such determination, during the continuance of the landlord's title or interest, and during the possession of the tenant from whom such rent is due. R.S., c. 464, s. 15.

Distress by estate after certain leases determine

16 The executor or administrator of a landlord may distrain upon land demised for a term or at will, for rent due in his lifetime, and such rent may be distrained for after the determination of such term or lease at will, in the same manner as if the term or lease had not been ended or determined, but the distress in such case shall be made within six months next after the determination of the term or lease, and during the continuance of the possession of the tenant from whom the rent is due. R.S., c. 464, s. 16.

PROTECTION OF GOODS OF
LODGERS FROM DISTRESS

Protection of goods of lodger

17 (1) If a superior landlord levies a distress on any furniture, goods or chattels of any lodger for any rent due and in arrear to such superior landlord by his immediate tenant, the lodger may serve the superior landlord, or the bailiff, or other person employed by him to levy the distress, with a declaration in writing made by the lodger, setting forth that the immediate tenant has no right of property or beneficial interest in the furniture, goods or chattels so distrained or threatened to be distrained upon, and that the furniture, goods or chattels are the property, or in the lawful possession, of the lodger, and also setting forth whether any and what amount, by way of rent, board or otherwise, is due, and for what period, from the lodger to his immediate landlord.

(2) To such declaration shall be annexed a correct inventory, subscribed by the lodger, of the furniture, goods and chattels referred to in the declaration.

(3) Such lodger may pay to the superior landlord, or to the bailiff, or other person employed by him, the amount, if any, so due, or so much thereof as is sufficient to discharge the claim of such superior landlord.

(4) Any such payment made by the lodger shall be deemed a valid payment on account of any such amount due from him to his immediate landlord.

(5) If any superior landlord, or any bailiff, or other person, employed by him, after being served with such declaration and inventory, and after the lodger has paid or tendered to such superior landlord, bailiff or other person, the amount, if any, which such lodger is herein authorized to pay, levies or proceeds with a distress on the furniture, goods or chattels of the lodger, such superior landlord, bailiff or other person, shall be deemed guilty of an illegal distress and the lodger may apply to the county court judge of the district in which the furniture, goods and chattels so levied on are for an order for the restoration of such furniture, goods and chattels.

(6) Such application shall be heard before the county court judge, who shall inquire into the truth of such declaration and inventory, and shall make such order for the recovery of the furniture, goods or chattels, or otherwise, as to him seems just, and the superior landlord shall also be liable to an action at law at the suit of the lodger, in which action the truth of the declaration and inventory may likewise be inquired into.

(7) If any lodger makes or subscribes such declaration and inventory, knowing the same or either of them to be untrue in any material particular, he shall be liable to a penalty of not more than fifty dollars, and in default of payment thereof to imprisonment for a period not exceeding six months. R.S., c. 464, s. 17.

NOTICE TO QUIT

Length and sufficiency of notice

18 (1) Notice to quit any house or tenement shall be given to or by the tenant thereof

(a) if the house or tenement is let from year to year, at least three months before the expiration of any such year;

(b) if from month to month, at least one month before the expiration of any such month;

(c) if from week to week, at least one week before the expiration of any such week.

(2) Such notice shall be sufficient although the day on which the tenancy terminates is not named therein. R.S., c. 464, s. 18.

RECOVERY FOR USE AND OCCUPATION

Recovery by landlord for use and occupation

19 Any landlord may recover, in an action at law, a reasonable satisfaction and compensation for the use and occupation of any land or tenement by any person under any agreement not made by deed, and if any parol demise or other agreement, not being by deed, by which a certain rent is reserved, appears in evidence on the trial of any such action, the plaintiff shall not on that account be debarred from a recovery, but the same may be made use of as evidence of the amount of the damages to be recovered. R.S., c. 464, s. 19.

PAYMENT OF RENT BY EXECUTION CREDITOR

Rights of creditor and landlord

20 (1) No goods, being upon any messuage or tenement leased, shall be liable to be taken by virtue of any attachment or execution, unless, before removal of such goods from off the premises, the person at whose suit the attachment or execution is sued out pays to the landlord, or his bailiff, at least one year's rent of such land or tenement, if so much is in arrear and due, and if the rent is not actually due, then a rateable part thereof up to the levy of the attachment or execution.

(2) If the rent so in arrear and due exceeds one year's rent of the premises, then, upon payment to the landlord or his bailiff of one year's rent, the attaching or execution creditor may proceed with such attachment or execution, and the sheriff, his deputy or other officer shall levy and pay to the attaching or execution creditor, as well the money so paid for rent as the amount directed to be attached or levied under the attachment or execution.

(3) Where a voluntary assignment of his property for the benefit of his creditors, or an authorized assignment under the Bankruptcy Act (Canada) is made by a tenant, or where under the Bankruptcy Act (Canada) a petition is presented to the court praying a tenant be adjudged bankrupt and that a receiving order be made against him, there shall be no right of the landlord to distrain or complete his distress for rent except for such rent as has accrued due during the three months immediately preceding such assignment, authorized assignment or petition, provided that where a petition for a receiving order or for the winding up of an incorporated company is dismissed or withdrawn or for any other reason is not granted the rights of the landlord affected by this subsection shall be deemed not to have been so affected.

(4) Notwithstanding any provision, stipulation or agreement in any lease or agreement, when a voluntary assignment of his property for the benefit of his creditors, or an order for the winding up of an incorporated company or a receiving order or an authorized assignment under the Bankruptcy Act (Canada) has been made by or against a tenant, the assignee, liquidator or trustee may within three months thereafter for the purposes of the trust estate by notice in writing to the landlord

(a) elect to retain the leased premises for the whole or any portion of the unexpired term and any renewal thereof, upon the terms of the lease and subject to the payment of the rent as provided by such lease or agreement; or

(b) surrender possession of the leased premises or disclaim any such lease.

(5) The entry by the assignee, liquidator or trustee into possession of the leased premises or their occupation by him at any time during three months after the assignment, order, receiving order or authorized assignment, and while required for the purposes of the trust estate, shall not be deemed to be evidence of an intention on his part to elect to retain possession of the leased premises pursuant to this Section. R.S., c. 464, s. 20.

RECOVERY OF RENT ON LEASE FOR LIFE

Recovery of rent due on lease for life

21 Rent in arrear and due upon a lease for life or lives may be recovered by action in the same way as if reserved upon a lease for years. R.S., c. 464, s. 21.

RETAIL BUSINESS LEASE

Operation on uniform closing day

22 (1) In this Section,

(a) "retail business" means the selling or offering for sale of goods or services by retail;

(b) "uniform closing day" means a uniform closing day as defined in the Retail Business Uniform Closing Day Act.

(2) Notwithstanding any lease or agreement, no owner or operator of a retail business is required, and no person shall require the owner or operator of a retail business, to operate on a uniform closing day as permitted by or pursuant to subsection 3(2) of the Retail Business Uniform Closing Day Act.

(3) No person shall discriminate or retaliate against, penalize or refuse to renew the lease of any person because that person refuses to operate a retail business as permitted by or pursuant to subsection 3(2) of the Retail Business Uniform Closing Day Act. 2006, c. 10, s. 7.

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