Bill 71, Life Leases Act, 2025

Summary#

• This bill creates a new law to govern “life leases” in Ontario. A life lease is a written deal that lets someone live in a housing unit for life or for a long, set time.

• The bill sets basic rules and gives the provincial government power to make detailed regulations on finances, disclosures, meetings, and other protections.

• Key points:

  • Defines life leases, life lease communities, sponsors (operators), and holders (residents).
  • Says the Act overrides any contract terms that conflict with it; conflicting terms are void.
  • Bans sponsors from knowingly giving false or misleading information related to matters under the Act.
  • Creates offences and fines: up to $50,000 for individuals and $250,000 for corporations; directors/officers can be liable if they knowingly take part.
  • Lets the government set rules on audits, financial management, reserve funds, disclosures, record-keeping, resident meetings, and resident representatives at sponsor board meetings.
  • Allows new rules to apply to existing life leases, which could change or cancel rights in current contracts without compensation.
  • The Act starts on a date set by the government.

What it means for you#

• Current or prospective life lease residents

  • You should get clearer information about the community and its finances once regulations are made.
  • You may have meetings with other life lease holders, with rules on notice and how meetings run.
  • A resident representative could be allowed to receive board meeting notices, attend sponsor board meetings, place items on the agenda, and share documents with residents, if the regulations set this up.
  • Reserve funds (savings for repairs and big costs) may be required. You could be required to contribute to them under future rules.
  • If a sponsor gives false or misleading information, they can face fines.
  • After a resident dies, a life lease may be treated as part of the person’s estate in situations set by future regulations, which affects how it is handled.

• Families and executors

  • How a life lease is handled after death may be clarified in regulations. Be prepared for rules that affect refunds, transfers, or timelines.
  • Some existing contract terms could change once regulations take effect.

• Life lease sponsors and operators (non-profits, charities, or companies)

  • You may have to prepare audited financial statements, follow financial management rules, keep specific records, disclose information to residents and prospects, and run meetings under set procedures.
  • You may need to create and maintain reserve funds and collect contributions from residents under rules the government sets.
  • Certain contract terms may be required or banned by regulation; terms that conflict with the Act or regulations will not be valid.
  • Knowingly providing false or misleading information can lead to offences and significant fines; directors and officers can be personally liable if they knowingly concur.
  • Regulations may apply to existing life leases and could modify or cancel current rights and obligations, without compensation.

• People not in life leases

  • No direct change. These rules target life lease communities.

• Timing

  • The law will take effect on a date the government announces. Many day‑to‑day rules will come later through regulations.

Expenses#

No publicly available information.

Proponents' View#

• Sets basic consumer protections for life lease residents by requiring clearer information and financial transparency.
• Helps prevent mismanagement by allowing audits, stronger financial rules, and required reserve funds for major repairs.
• Gives residents more voice and visibility through meetings and potential access to sponsor board discussions.
• Standardizes practices across life lease communities and can block unfair contract terms.
• Penalties for false or misleading information deter deceptive marketing and improve trust.

Opponents' View#

• The government’s broad regulation powers leave many details unknown, creating uncertainty for residents and sponsors.
• Compliance costs for audits, disclosures, meetings, and reserve funds could be high and may be passed on to residents.
• Allowing new rules to change existing contracts without compensation may be seen as unfair and could trigger disputes.
• A two‑year limit to start offence proceedings may be too short to uncover complex issues.
• Added red tape might discourage some organizations from offering life lease housing, which could affect supply.