Last Updated: August 26 2026
In Ontario, when does the doctrine of frustration end a residential tenancy after a fire or condemnation, and what can a tenant do next?
Hall Paralegal Services can help tenants in Ontario understand when a tenancy may be frustrated and terminated after a serious, unforeseeable event makes the unit impossible to occupy, such as a fire, major water leak, or municipal condemnation, because the Residential Tenancies Act, 2006 applies the doctrine of frustration to tenancy agreements under Residential Tenancies Act, 2006, S.O. 2006, c. 17, s. 19; in decisions like AS v. CJM, 2010 CanLII 58985, the tribunal treated condemnation as ending the tenancy by operation of law, even where unoccupability stems from neglect that leads to condemnation. When frustration is found, security of tenure and return rights (including any first right of refusal after restorative work) may cease if repairs take a lengthy, unreasonable period, as discussed in Y.Y. v. A.T. and L.W., 2013 CanLII 51226; a practical next step is to document the order or damage, confirm the timeline, ask the landlord for written details of repairs and legal status, and consider filing or responding through the Landlord and Tenant Board if your tenancy has been terminated or your return rights are being denied, so you can protect what you can while you assess your options. For help assessing your situation and next moves, call (519) 258-2400 to book a paralegal consultation with Hall Paralegal Services.
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Understanding When the Doctrine of Frustration Applies to a Residential Tenancy and What Recourse Does a Tenant Have?
Incidents that cause serious damage such as a fire, a tornado, a flood, a major water leak, or some other catastrophic circumstance, may occur and cause impossibility of occupancy of a residential unit. Even a change in law may occur in such a way as to make compliance impossible. When a tenancy is made impossible due to unforeseeable outside forces, such is referred to as a force majeure event, and the legal result is that the statutory obligations as well as the contractual obligations of the landlord and the tenant come to an end as per section 19 of the Residential Tenancies Act, 2006, S.O. 2006, Chapter 17. This ending of the tenancy relationship due to the frustrating event occurs regardless of whether the frustrating event happens within a lease period or happens afterwards when the lease is expired and the tenure is converted into a month-to-month arrangement. Specifically, the Residential Tenancies Act, 2006 says:
Note: Please contact Hall Paralegal Services by phone at: (519) 258-2400 to discuss any specific questions that you may have.
19 The doctrine of frustration of contract and the Frustrated Contracts Act apply with respect to tenancy agreements.
Condemnation
In some circumstances, premises may become unoccupiable when ordered condemned by the local municipality such as occurred in the case of AS v. CJM, TSL-05808-10 (Re), 2010 CanLII 58985 wherein it was stated:
1. At the hearing before me the parties filed an order dated September 27, 2010 issued by the City of Toronto that says the residential complex is unsafe and that occupancy of the rental unit is prohibited.
2. As I explained at the hearing section 19 of the Residential Tenancies Act, 2006 (the ‘Act’) says: “The doctrine of frustration of contract and the Frustrated Contracts Act apply with respect to tenancy agreements.” Essentially the doctrine of frustration says that when a contract becomes impossible of performance, then the contract has come to an end. As the doctrine applies to residential tenancy agreements what this means is that when a residential complex cannot be physically lived in anymore because it has been condemned, the tenancy has come to an end by operation of law.
3. As a result, an order will issue declaring the tenancy termination by operation of the doctrine of frustration.
Accordingly, and perhaps surprisingly, even when premises become condemned due to neglect, meaning a failure of maintenance, by the landlord, a frustration of the tenancy occurs resulting in a termination of the tenancy agreement, whether as a lease agreement or a statutory month-to-month agreement, when the rental unit is 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:
1. The Residential Tenancies Act, 2006 did apply to this unit from June 1, 2012 until December 1, 2012. At that time the unit was deemed uninhabitable and the tenancy agreement became frustrated pursuant to the Frustrated Contracts Act and as permitted under section 19 of the Residential Tenancies Act, 2006 (RTA).
2. As a result of the lengthy period of time required to make repairs to the unit there is no foreseeable date that the Tenants would be permitted back into the rental unit. There is no requirement under the RTA for the Landlord to offer the Tenants first right of refusal when the unit does become habitable.
3. Based on the evidence provided and the fact this vacancy of the rental unit is not for a short period of time I have deemed the rental contract to be frustrated as of December 1, 2012.
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.
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