When an Ontario landlord and tenant want to settle an L1 or L9 arrears case through a repayment plan ahead of the hearing, they sign the Landlord and Tenant Board (LTB) Payment Agreement. As of July 1, 2026, this form is compulsory for every repayment plan made under section 206 of the Residential Tenancies Act. On an L1, it can also preserve the landlord's ability to file an L4 for eviction if the tenant falls behind on the plan, which matters a great deal for how quickly you can act later.
At a glance
| Parties | The landlord and every tenant named on an L1 or L9 |
| Timing | Any point after the application is filed, up to the start of the hearing |
| Hard deadline | It has to be filed before the hearing begins (RTA s. 206(1)(c)) |
| Filing method | Tribunals Ontario Portal, email or mail, after everyone has signed |
| Fee | Nothing to file it; the L1/L9 fee ($201, or $186 on the Portal) may be built into the amount the tenant repays |
| What can follow | An L4 (L1 only, where agreed) or a Request to Re-open an Application |
Purpose of the Payment Agreement
Under section 206 of the RTA, the Board can issue an order containing payment terms with no hearing when four conditions are met: the parties have resolved the application in writing, that writing is on the form the Board has approved, all parties signed it, and it was filed before the hearing got under way (s. 206(1)). The approved-form condition took effect on July 1, 2026, and the LTB's operational update confirms that this form is now required.
What the order can cover (s. 206(2)):
- the rent arrears;
- NSF bank charges and related administration charges;
- the application fee; and
- rent falling due while the arrears are being repaid.
What it cannot do is terminate the tenancy (s. 206(3)).
The link to the L4
For an L1 only, the order may contain a term that allows the landlord to apply under s. 78 if the tenant breaches it (s. 206(3.1)), and the L4 is the form for it. It is filed without giving the tenant notice, carries no fee on the Portal, and can lead to an eviction order issued before the tenant is heard. The tenant then has 10 days to bring a motion to set that order aside. For a landlord, this clause is the single most valuable thing the agreement can contain.
When the form fits and when it does not
The form sets its own limits:
- It works only on L1 and L9 applications, and not where the rent claim has been joined with another application type (an L1 filed alongside an L2, for instance).
- It cannot record an agreement to end the tenancy or to evict, and it cannot carry debts other than rent, NSF charges and the filing fee.
- Ongoing rent and the L4 option are available on L1s alone.
- If the goal is a move-out, the tools are a mediated settlement or the N11 Agreement to End the Tenancy.
- Once the hearing has started, s. 206 is off the table. From then on, the route is a Rule 14 consent order requested from the Member.
Time limits
- Filing: do it immediately. The form cautions that an agreement received close to the hearing date may leave the Board without time to issue an order, in which case the hearing proceeds. Show up unless you have the order in hand or confirmation that the hearing has been cancelled.
- L4 after a default (L1 only): no later than 30 days after the tenant fails to make a payment in full and on time (s. 78(5)). The Board has no power to extend this.
- Re-opening after a default (L1 or L9): also 30 days from the failure (s. 206(6)). Because this period is prescribed (O. Reg. 516/06, s. 56), it cannot be extended.
- Re-opening for coercion or deliberate misrepresentation: open to either party, within 30 days of the consent order's date (s. 206(5)).
Completing the form, part by part
Version 2026/07 is current. Read the two-page "Important information" sheet before you start.
- File details. Enter the File Number, the language you want, and any accommodation needed.
- Parties and unit. List the landlord(s), the tenant(s) and the rental unit address using the names exactly as they appear on the application. "Landlord" and "tenant" include everyone listed.
- Section 1, what the tenant owes. Show rent owing up to a set date (the end of the current rent period at signing), any NSF bank charges and administration charges you are claiming (the administration charge cannot exceed $20 per cheque), the application fee if included, and the total.
- Section 2, the instalment schedule. Give each payment's amount and due date. There is no cap on the number of instalments; if you need more than 12 lines, attach a page. Check that the instalments total exactly what Section 1 shows.
- Section 3, rent coming due (L1 only). State the regular monthly rent and the day it is due, which the tenant pays on top of the instalments until the arrears are gone, along with the current rent amount and rent period.
- Section 4, default. The right to re-open on an L1 or L9 is already printed on the form. On an L1, the optional L4 clause only takes effect if the tenant puts their initials in the box next to it.
- Signatures. All tenants and all landlords (or a representative) print, sign and date.
Getting it to the Board
After all parties have signed, send the agreement to the LTB by email or mail as the form permits, or upload it to the Tribunals Ontario Portal. Whether to make a consent order is then up to the Board. An order cancels the hearing; no order means the hearing goes ahead on the scheduled date.
Errors that cost you the order or your remedy
- Writing your own repayment agreement. The approved LTB form has been required for a s. 206 order since July 1, 2026 (s. 206(1)(a.1)). A document you drafted yourself will not get you one.
- No initials on the L4 clause. Without the tenant's initials, the L4 route is closed and your only option on default is to re-open.
- Using it on a combined L1/L2. The form is not available where the rent claim is joined with another kind of application.
- Adding terms the form cannot carry, for example a move-out date, a damages claim or other debts unrelated to rent.
- A missing signature, or filing after the hearing has started. Either one fails s. 206(1).
- Numbers that do not match. If the Section 2 instalments fall short of the Section 1 total, or ongoing rent is left out on an L1, the Board may refuse to make the order, or the order you get may leave you exposed.
- Treating the hearing as cancelled when it is not. Without an order, the hearing may still proceed, and the Board will go ahead in your absence.
- Letting the 30 days slip after a default. The L4 and the request to re-open both have to be filed within 30 days of the missed payment.
After filing
Once a consent order is made, the tenant follows the payment schedule. On a missed payment, you have 30 days to choose between an L4 (L1 only, and only with the initialled clause) and a Request to Re-open an Application. If no order comes, bring an up-to-date L1/L9 Information Update to the hearing.
Recent changes
Starting July 1, 2026, repayment plans under s. 206 must be made on the LTB Payment Agreement form (RTA s. 206(1)(a.1), added by Bill 97 and explained in the LTB operational update). The current version of the form is 2026/07.
Frequently asked questions
Do I have to use the LTB's Payment Agreement form?
Yes, if you want a s. 206 order, meaning the Board turns your plan into an order with no hearing. That requirement has applied since July 1, 2026.
Can the agreement say the tenant will move out?
No. Both the form and s. 206(3) rule that out. To end the tenancy you need a different kind of agreement, or an order made after a hearing.
The tenant missed an instalment. What now?
If it is an L1 and the tenant initialled the L4 clause, an L4 filed within 30 days can produce an eviction order with no hearing. In any other case, you can request that the application be re-opened, again within 30 days.
Is the hearing off once both sides sign?
Only once a consent order has been issued, ahead of the hearing date. Until you have it, prepare as if the hearing will proceed.