Cash for Keys? Here’s How to Ensure Your Tenant Follows Through

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Here's a tip to strengthen your next Cash for Keys agreement:

File an L3 Application.

A Cash for Keys agreement is a deal where the tenant agrees to move out by a certain date in exchange for a payment.

But this agreement alone doesn’t guarantee that the tenant will hold up their end of the bargain. That’s where the L3 Application comes in.

What is an L3 Application?

It's an application that a landlord can file with the Landlord and Tenant Board (LTB) to obtain an eviction order without a hearing.

When can it be used?

An L3 can be filed by the landlord if:

• the landlord and tenant have entered into an agreement to terminate the tenancy; or
• the tenant has given the landlord notice of termination of the tenancy (Form N9). 

What are the benefits?

It gives the landlord the authority to enforce a Cash for Keys eviction through a Sheriff, if needed.

Without the eviction order, if a tenant doesn’t leave after signing a Cash for Keys agreement, there's limited ability to force the tenant out.

When can it be filed?

You can submit the L3 Application as soon as the Cash for Keys agreement is signed.

You do not need to wait until after the date that the tenancy is supposed to end.

How is it filed?

The landlord must complete the following documents, then submit them to the LTB:

• The completed L3 application form,
• A copy of the written agreement to end the tenancy.
• A signed declaration or sworn affidavit which confirms the contents of the written agreement,
• The application fee ($201 by mail, or $186 by LTB Portal)

There is no hearing; the LTB simply reviews the documents and, if everything checks out, issues an eviction order based on the agreement.

– – –

This is a no-brainer. If you've executed a Cash for Keys agreement, you want the peace of mind that comes with an eviction order.

For just $186, file the L3 as soon as the agreement is signed. That way, if the tenant doesn’t follow through, you’ve already got the order in hand, ready to enforce with the Sheriff.

It’s extra security that saves you from potential headaches later.