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Frustrated Tenancies:
Impossibility of Continued Occupancy
Last Updated: July 01 2026
Question: Can KLP Paralegal Services help me figure out whether my Ontario rental unit is “frustrated” after a major fire, flood, or municipal condemnation and what I can do next as a tenant?
Answer: KLP Paralegal Services helps Ontario tenants understand when the doctrine of frustration of contract can apply to a residential tenancy after an unforeseen event (such as a major fire, flood, windstorm, or a municipal order prohibiting occupancy) and what recourse may be available, including how frustration can end the tenancy under section 19 of the Residential Tenancies Act, 2006, S.O. 2006, Chapter 17; it also explains how security of tenure and any right of return may be affected where repairs take a lengthy, uncertain period. If you tell your Paralegal what happened, when, and what notices you received, KLP Paralegal Services can outline practical next steps and help you take the right actions for your situation, call (416) 570-6378 for assistance.
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 another 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:
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 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:
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.
NOTE: A significant number of inquiries regarding “lawyers near me” or “best lawyer in” frequently signify a demand for prompt and effective legal aid rather than a specific professional designation. In Ontario, licensed paralegals are governed by the same Law Society that regulates lawyers and are permitted to represent clients in certain litigation matters. Skills in advocacy, legal assessment, and procedural proficiency are essential to that role. KLP Paralegal Services provides legal representation within its licensed parameters, focusing on strategic positioning, evidentiary preparation, and compelling advocacy aimed at securing swift and favourable outcomes for clients.