Lease assignment is one of the most misunderstood mechanisms in Quebec residential tenancy law. For years it was the tenants' main tool to leave a lease early while transferring their often below-market rent to a new occupant. Since Law 31 (Bill 31) took effect in February 2024, the balance has changed radically: a landlord who refuses an assignment ends the lease at the date proposed by the tenant.
This article explains lease assignment as it exists today, how it differs from subletting, what Law 31 changed, the exact landlord-side procedure, and the strategic choices to make when facing an assignment request.
Lease assignment vs subletting: the difference that changes everything
Many landlords conflate the two. The Civil Code of Quebec distinguishes them clearly:
| Aspect | Lease assignment (art. 1870) | Sublet (art. 1870) |
|---|---|---|
| Effect on original tenant | Exits the lease entirely — no longer a party | Stays party to the lease — liable to landlord |
| Liability for unpaid rent | Assignee (new tenant) alone | Subtenant AND principal tenant |
| Duration | Remaining full lease term | Period shorter than the lease |
| Landlord recourse for non-payment | Against the assignee only | Against principal tenant (who recourses subtenant) |
| Rent increase at next renewal | Conditions transferred to assignee | Principal lease unchanged |
The regime BEFORE Law 31 (before February 2024)
Under the old regime, the landlord could only refuse an assignment for a 'serious reason'. Case law interpreted this very restrictively:
- Documented history of non-payment by the proposed assignee
- Clearly insufficient financial capacity
- Known illegal activity
- Obvious bad faith in the request
Everything else — refusing to re-rent higher, refusing because the candidate's profile was subjectively displeasing, refusing to bring rent up to market — was deemed abusive and the landlord lost at the TAL. The tenant could then force the assignment over the landlord's objection.
The NEW regime since Law 31 (February 2024)
Law 31 completely flipped the dynamic. Here's the new rule in one sentence:
It's a trade-off: the tenant is no longer stuck in a lease they want to leave, but the landlord is no longer forced to accept an imposed assignee. Each side gets what they need depending on their objectives.
Step-by-step procedure
- 1The tenant sends a written assignment notice to the landlord, including the assignee's name and address and the proposed assignment date.
- 2The landlord has ONE MONTH from receipt of the notice to respond in writing.
- 3Three choices: (a) accept the assignment; (b) refuse for a serious reason; (c) refuse without giving a reason — in which case the lease ends.
- 4If the landlord doesn't respond within the month, they are deemed to have consented to the assignment.
- 5If the landlord accepts, assignment takes effect on the proposed date and the assignee becomes the tenant in place of the original.
- 6If the landlord refuses, the lease ends at the date proposed by the tenant (or earlier if the landlord requests).
Before vs After Law 31: comparison table
| Question | Before Law 31 | Since Law 31 |
|---|---|---|
| Can landlord refuse freely? | No — serious reason required | Yes — any reason |
| Consequence of refusal | Assignment forced if reason deemed insufficient | Lease ends at tenant's proposed date |
| Can landlord adjust rent on next lease? | No — rent frozen via assignment | Yes — re-rent at market |
| Response deadline | 1 month | 1 month (unchanged) |
| Landlord silence | Acceptance | Acceptance (unchanged) |
| Tenant can challenge refusal? | Yes, frequently and successfully | No — refusal ends the lease, full stop |
Typical cases: accept or refuse?
Assignment worth accepting
- The assignee has a solid financial profile and the rent is near market value
- You don't have time or energy to re-rent (busy summer, other priorities)
- Expected vacancy period would exceed the gains from a new rent
- The assignee is known and reliable (direct referral from another trusted tenant)
Assignment worth refusing (and lease ended)
- Current rent is significantly below market — our TAL rent-increase calculator and rent price estimator can quantify the gap
- The proposed assignee has a weak or incomplete financial profile
- You're considering a repossession to move in yourself or a relative in the next 12 months anyway — see our repossession guide
- You're planning major work or deep renovation
- The rental market is tight in your area — re-renting will be fast and profitable
The economics of refusal
Refusing an assignment is economically interesting only if the re-rent gain exceeds the vacancy cost. Simple formula:
Concrete example: current rent $1,400, estimated market rent $1,700, expected vacancy 4 weeks in low season. Annual gain = 300 × 12 = $3,600. Vacancy cost = 1,400 × (4 ÷ 4.33) = $1,293. Net gain = $2,307 — profitable refusal.
Conversely, if current rent is $1,650, market $1,700, 6 weeks of winter vacancy: Annual gain = 50 × 12 = $600, Vacancy cost = $2,286. Net gain = −$1,686 — accepting the assignment is smarter.
Traps to avoid
- Not responding within the month — silence equals acceptance, you're stuck with the assignee
- Refusing orally or by text — written proof is essential to enforce the lease ending
- Refusing without documenting your reasoning — in case the tenant contests the lease ending, your file must hold up
- Confusing assignment with sublet — a sublet notice is handled differently (you can refuse without ending the lease)
- Asking for any 'consideration' in exchange for accepting — prohibited, treated as undue demand (art. 1872 CCQ)
- Refusing an assignment then attempting a repossession at the same time — bad-faith risk if not genuinely demonstrated
When assignment and repossession meet
Law 31 also changed repossession of unit. If you're considering taking back your unit in the next 12 months AND an assignment request arrives, your strategy shifts:
- Refusing the assignment ends the lease at the tenant's proposed date — often earlier than you'd obtain via repossession (which requires 6 months of notice)
- You save time, you avoid the TAL repossession procedure, you save the minimum 3-month rent indemnity owed on repossession
- If the repossession was risky (weak proof of the housing project), refusing the assignment becomes the clean path
Sample assignment refusal notice
Here's a written response template to use the moment an assignment request arrives. Adapt to your situation, but keep these essential elements:
Send by registered mail OR in person with signed receipt OR by bailiff. Avoid email as the sole method — proof of receipt is too weak for an act that ends a lease.