Settlement can occur before or during an LTB proceeding.
Landlords and tenants may discuss resolution before an application is filed, while a proceeding is active or on the hearing date. The appropriate process depends on the dispute, the documents already served or filed and the outcome the parties are considering.
Settlement does not mean that either party must abandon every concern. It involves assessing the risks and practical consequences of continuing the proceeding compared with agreed terms that both sides can perform.
Prepare before making or responding to an offer.
Identify the result being requested and the issues that are negotiable. Review the application, evidence, financial calculations, upcoming deadlines and any related tenancy concerns. A party should understand both the best outcome being sought and the minimum terms needed for a workable resolution.
Where money is involved, confirm the amount, calculation date, credits and ongoing obligations. An agreement based on an incorrect balance can create a new dispute rather than resolve the existing one.
Mediation is a confidential process.
LTB mediation allows the parties and their representatives to discuss settlement with assistance from a mediator or dispute resolution officer. Tribunals Ontario describes mediation discussions as private. If no agreement is reached, the matter can proceed to a hearing.
The mediator does not impose a settlement. Each party decides whether the proposed terms are acceptable. The opportunity to mediate may depend on the type of proceeding, timing and available LTB resources.
Online dispute resolution may support early resolution.
For supported applications, the Tribunals Ontario Portal includes an online dispute resolution process. It may assist the parties in communicating, developing a payment plan, requesting mediation, documenting a mediated agreement or obtaining a consent order. The available options depend on the file and portal functionality.
Clear settlement terms matter.
A settlement should identify exactly what each party must do, when it must be done and how completion will be confirmed. Depending on the matter, terms may address:
- The parties and LTB file numbers covered by the agreement.
- Amounts owing, credits applied and the calculation date.
- Payment amounts, dates and permitted payment methods.
- Repairs, access, communication or other tenancy obligations.
- Move-out arrangements or continuation of the tenancy.
- The treatment of the application and any related proceeding.
- Confidentiality, releases or other negotiated provisions where appropriate.
- What process may follow if a term is not completed.
Enforcement language and remedies should be reviewed carefully. Not every proposed consequence is necessarily available or appropriate, and the legal effect can differ between a private agreement, mediated settlement and consent order.
Written agreements, mediated settlements and consent orders are not identical.
Parties may sign a written settlement, complete a mediated agreement or ask that agreed terms be incorporated into an LTB consent order where available. Tribunals Ontario notes that the LTB does not retain a copy of a signed mediated agreement, while a consent order is issued to the parties.
The choice of document affects how the resolution is recorded and what may happen if a party later alleges non-compliance. Before signing, understand the document being created and keep a complete copy.
A partial agreement can still narrow the hearing.
The parties may resolve some issues while leaving others for adjudication. If that occurs, document which allegations, amounts or remedies have been settled and which remain disputed. Ambiguity about the remaining issues can undermine the benefit of a partial settlement.
Do not agree to terms that cannot realistically be performed.
A payment plan should reflect actual income, expenses and ongoing rent obligations. Repair terms should identify access, scope and timing. A move-out arrangement should account for the practical steps needed to return possession. Terms that depend on a third party or uncertain event should explain what happens if that event does not occur.
After an agreement is reached.
Confirm that every party has the signed agreement or issued order. Record upcoming dates and complete each obligation in the required manner. Keep proof of payments, repairs, delivery of keys, withdrawal requests or other performance.
If circumstances change, communicate promptly and obtain advice before assuming that a term can be ignored or informally replaced. Any amendment should be documented clearly and signed where appropriate.
When assistance may be useful.
Limited-scope assistance may include reviewing a proposal, calculating arrears, drafting settlement terms, participating in negotiation or mediation, or explaining the difference between a private agreement and a requested consent order. Full representation may be appropriate where the proceeding will continue if negotiations are unsuccessful.