Frustrated Tenancies:

Question: When a residential unit in Ontario is declared uninhabitable or occupancy is prohibited due to a fire, major flood, or condemnation, how do I know if my lease is “frustrated” and what options do I have as a tenant to protect my rights?

Answer: Case in Point Paralegal Services can help you understand whether the doctrine of frustration (and the related legal consequence that termination can occur by operation of law) likely applies under section 19 of the Residential Tenancies Act, 2006 when unforeseen outside events make the unit impossible to occupy, including situations like municipal condemnation orders where occupancy is prohibited; if frustration applies, the tenancy relationship can end and tenant “security of tenure” rights such as a first right of refusal to return after repairs may not be available, but if the landlord can realistically complete repairs within a reasonable time the tenancy may not be frustrated and you may still have return rights depending on the facts; for a practical next step, gather the order or municipal notice, repair timelines, and your tenancy documents, then get advice promptly so you can choose the right course of action and preserve any available remedies, call (519) 318-7843 for paralegal support across Ontario.

Understanding When the Doctrine of Frustration Applies to a Residential Tenancy and What Recourse Does a Tenant Have?

Certain events, such as a major fire, flood or serious water damage, tornado or windstorm, or some other unforeseen circumstances, including changes in law, may arise with the result being that occupancy of the residential premises becomes impossible.  When the tenancy becomes impossible due to an unforeseeable outside force, sometimes called a force majeure event, the contractual obligations of both the landlord and the tenant, whether during a lease period or after the tenure converts to a month-to-month, are deemed frustrated and the tenancy arrangements come to an end as per section 19 of the Residential Tenancies Act, 2006, S.O. 2006, Chapter 17 where it is said:

Condemnation

Sometimes a rental unit becomes unoccupiable due to an order issued by the local municipality that condemns the premises. This type of situation occurred and was the issue within the case of AS v. CJM, TSL-05808-10 (Re), 2010 CanLII 58985 where it was said:

Accordingly, and apparently, despite that premises may become condemned due to the neglect of the landlord, as a matter of law, frustration of the tenancy agreement, and thereby termination of the tenancy agreement with corresponding termination of the tenancy, results when the premises are officially condemned.

Ceasing of Security of Tenure

Where a tenancy agreement is deemed frustrated, such as in circumstances where a fire requires restorative work that will be extensive and take considerable time, the security of tenure, including first right of refusal to return following restorative work, is absent.  Only where the restorative work can be done in a reasonable amount of time will the tenancy agreement be without frustration and therefore with security of tenure protected as per the case of Y.Y. v. A.T. and L.W., TEL-32649-12 (Re), 2013 CanLII 51226 where it was said:

Summary Comment

When a serious force majeure event occurs, rendering the premises unoccupiable for an unforeseeable length of time, the tenancy agreement, whether within a lease period or month-to-month period, becomes frustrated and all obligations cease including the security of tenure usually enjoyed by the tenant.