4.5 Ending the Tenancy When the Agreement Becomes Frustrated

The Residential Tenancies Act provides for the agreement to be terminated and/or the rent reduced if the agreement becomes frustrated for reasons other than a breach of the agreement (s. 69).

The agreement may become frustrated because the premises or part of the premises

are destroyed, or
are rendered uninhabitable, or
cease to be lawfully useable as a residence, or
are appropriated or acquired by any authority by compulsory process
as long as none of these situations arises as a result of a breach of the agreement.

Examples of events which frustrate the agreement may include:

if the house is destroyed by fire, or
the roof is blown off during a storm, or
the property becomes zoned for non-residential use, or
the land is resumed to build a highway.

The agreement may become terminated and/or the rent reduced if the agreement becomes frustrated for reasons other than a breach of the agreement.

When the agreement becomes frustrated otherwise than as a result of a breach of agreement the rent shall abate (decrease) accordingly. The tenant and the owner should negotiate a rent reduction or waiver. However, if no agreement can be reached, the matter may be referred to a Magistrate for a decision.

Either party can give the other notice to end the agreement.

The tenant can give the owner not less than 2 days notice in writing.

The owner must give the tenant not less than 7 days notice by issuing them with a Form 1 - Notice by Owner of Termination of Agreement.

The owner may never physically force or lock a tenant out of the premises. If a tenant has not moved after receiving a notice of termination the owner must apply to the Court to have the tenant removed. The owner may face a $2,000 penalty for forcing the tenant out of the premises without a Court order (s. 80).

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