LTB Payment Agreement: Settling an L1 or L9 Rent Case in Ontario

Payment Agreement

The Payment Agreement is the Ontario Landlord and Tenant Board (LTB) form a landlord and tenant sign to settle an L1 or L9 rent arrears application with a repayment plan before the hearing. Since July 1, 2026 it is mandatory for any repayment plan under section 206 of the Residential Tenancies Act, and on an L1 it can give the landlord the right to file an L4 for eviction if a payment is missed.

At a glance

Who uses it Landlord and tenant(s) on an L1 or L9 application
When After the application is filed and before the hearing starts
Deadline Must be filed before the hearing has commenced (RTA s. 206(1)(c))
How it is filed Tribunals Ontario Portal, email or mail, once all parties have signed
Filing fee None; the L1/L9 fee ($201, or $186 through the Portal) can be included in the amount repaid
Follow-on form L4 (L1 only, if agreed) or Request to Re-open an Application

What the Payment Agreement is for

Section 206 of the RTA lets the LTB make an order with payment terms without a hearing if the parties have a written agreement resolving the application, the agreement is in the form approved by the Board, everyone has signed it, and it is filed before the hearing starts (s. 206(1)). The form requirement came into force July 1, 2026; the LTB's operational update confirms the Payment Agreement form is now mandatory.

The order can require payment of arrears, NSF bank and administration charges, the application fee, and rent that comes due while the arrears are being paid (s. 206(2)). It cannot end the tenancy (s. 206(3)).

How it ties to the L4. On an L1, the order may include a term letting the landlord apply under s. 78 if the tenant breaks the order (s. 206(3.1)). That application is the L4: filed without notice to the tenant, with no fee through the Portal, and the LTB can issue an eviction order without hearing from the tenant first. The tenant can then move to set aside that order within 10 days.

When to use it (and when not to)

The form's own rules:

Deadlines and limitation periods

How to fill out the Payment Agreement, section by section

The current form is version 2026/07. Read its two-page "Important information" sheet first.

  1. File Number, language and accommodation.
  2. Landlord(s), Tenant(s) and Address of Rental Unit. Use the same names as on the application; "landlord" and "tenant" cover everyone listed.
  3. Section 1, Amount to be paid by tenant. Rent owing up to a stated date (to the end of the current rent period as of signing), optional NSF bank and administration charges (administration charge capped at $20 per cheque), the optional application fee, and the total.
  4. Section 2, Payment amounts and dates. Each instalment with its amount and due date. There is no limit on the number of payments; attach a sheet if you need more than 12. Make sure the instalments add up to the Section 1 total.
  5. Section 3, Rent that becomes due (L1 only). The ongoing monthly rent and its due day, payable in addition to the instalments until the arrears are cleared, plus the current rent amount and period.
  6. Section 4, Failure to make a payment. The re-open right for L1 and L9 is printed in. For an L1, the optional L4 clause applies only if the tenant initials the box beside it.
  7. Signatures. Every tenant and every landlord (or representative) prints their name, signs and dates.

Filing it

Once signed by all parties, file it with the LTB through the Tribunals Ontario Portal, or by email or mail as the form allows. The LTB then decides whether to issue a consent order. If it does, the hearing is cancelled; if not, the hearing proceeds as scheduled.

Mistakes that get it refused, voided or dismissed

  1. Using your own repayment document. Since July 1, 2026 the LTB-approved form is required for a s. 206 order (s. 206(1)(a.1)). A homemade agreement will not produce one.
  2. Tenant did not initial the L4 clause. Without the initials, you have no L4 option and must re-open instead.
  3. A combined L1/L2. The form cannot be used where a rent application is combined with another application type.
  4. Including terms the form cannot hold, such as a move-out date, damages or other non-rent debts.
  5. Not every party signed, or it was filed after the hearing began. Both defeat s. 206(1).
  6. Arithmetic that does not reconcile. If Section 2 does not add up to Section 1, or omits new rent on an L1, the Board may decline to make the order or the order may not protect you.
  7. Skipping the hearing. If no order has arrived, the hearing may still go ahead, and the LTB will proceed without you.
  8. Waiting too long after a missed payment. Both the L4 and the re-open request must be filed within 30 days of the failure.

What happens next

If the Board issues a consent order, the tenant pays on the schedule. If a payment is missed, the landlord's options are an L4 (L1 with the initialled clause) or a Request to Re-open an Application, each within 30 days. If the Board does not issue an order, attend the hearing with a current L1/L9 Information Update.

Recent changes

From July 1, 2026, use of the LTB Payment Agreement form is mandatory for repayment plans under s. 206 (Bill 97 amendment, RTA s. 206(1)(a.1); LTB operational update). The form was reissued as version 2026/07.

Frequently asked questions

Is the LTB Payment Agreement mandatory?

Yes, for a repayment plan the LTB turns into an order without a hearing under s. 206. The approved form requirement took effect July 1, 2026.

Can a Payment Agreement end the tenancy?

No. The form and s. 206(3) prohibit it. Ending the tenancy needs a different agreement or an order after a hearing.

What happens if the tenant misses a payment?

On an L1 with the initialled L4 clause, the landlord can file an L4 within 30 days and get an eviction order without a hearing. Otherwise, the landlord can ask to re-open the application within 30 days.

Does signing the agreement cancel the hearing?

Only if the Board issues a consent order before the hearing. Until then, treat the hearing as going ahead.

Official sources

Last reviewed October 31, 2026. This page is general information, not legal advice for your situation. Always use the current version of the form from the LTB.

Move your file forward.

Book a consultation online, call 1-888-744-0LTB, or email shemeshparalegal@gmail.com
Vaughan office · 9131 Keele St., Suite A4 · Serving Ontario province-wide
Call 1-888-744-0LTB Book online