Commercial Lease Termination in Ontario: How a Lease Ends and What Each Side Can Do

Whether you are a business owner who needs out of a lease or a landlord dealing with a default, the rules on ending a commercial lease in Ontario are set partly by the lease and partly by the Commercial Tenancies Act. This article explains the main ways a lease ends and what each side can do. For help reading a lease before you sign, see our article on key commercial lease clauses.

How a Commercial Lease Can End

• The term expires. A fixed-term lease ends at the end of its term unless it is renewed or the tenant stays on under new terms.
• By agreement. The landlord and tenant can agree in writing to end the lease early, often called a surrender, on terms such as a date, a payment and the condition of the space.
• Under a termination clause. Some leases give one or both parties the right to end the lease early on notice or on a stated event. Read the notice and timing requirements closely.
• After a default. A landlord may be entitled to re-enter or declare a forfeiture if the tenant does not pay rent or breaches another term, subject to the Act (see below).
• By assigning or subletting. This is not a termination, but it can be a way out. A covenant against assigning or subletting without consent is treated as subject to a proviso that consent is not to be unreasonably withheld, unless the lease expressly provides otherwise (section 23).
• Weekly or monthly tenancies. A week’s notice to quit, or a month’s notice to quit, ending with the week or the month, is sufficient to end a weekly or monthly tenancy (section 28).

Insolvency of the tenant raises separate rules under federal law, so speak with a lawyer if that applies. See the Commercial Tenancies Act on Ontario.ca.

Termination for Unpaid Rent

Unless the lease says otherwise, every lease is deemed to include an agreement that if the rent, or any part of it, stays unpaid for 15 days after it was due, the landlord may re-enter and repossess the premises, even though no formal demand has been made (section 18(1)). The lease may provide a different period, and what the lease says matters. How a landlord re-enters is a legal risk in itself, so a landlord should get advice before acting.

Termination for Other Breaches

For a breach other than non-payment of rent, such as an unauthorized use or a failure to maintain the premises, a right of re-entry or forfeiture is not enforceable unless the landlord first serves a notice on the tenant (section 19(2)). The notice must:

• specify the particular breach complained of;
• if the breach can be fixed, require the tenant to remedy it; and
• require the tenant to pay compensation in money for the breach.

The right can be enforced only if the tenant then fails, within a reasonable time, to remedy the breach and to pay reasonable compensation to the landlord’s satisfaction. The Act also allows re-entry where the tenant is convicted of keeping a disorderly house, or carries on a business that needs a licence without having one (section 18(2)).

Relief From Forfeiture

If a landlord is proceeding to enforce a right of re-entry or forfeiture, for non-payment of rent or for another reason, the tenant can apply to the Superior Court of Justice for relief. The court may grant whatever relief it thinks fit, having regard to what happened and to all the circumstances, and on terms about rent, costs, damages and the like (section 20(1)). Relief is a matter for the court, so it is not automatic, and a tenant who may need it should act quickly and get advice.

If a Tenant Will Not Leave

When a lease has expired or been ended, and the tenant wrongfully refuses to leave, the landlord can apply on affidavit to a judge of the Superior Court of Justice under Part III of the Act. The judge holds a summary hearing, and if the tenant wrongfully holds against the landlord’s right, the judge may order a writ of possession directed to the sheriff, who places the landlord in possession (sections 74 and 76). An appeal lies to the Divisional Court (section 78).

If You Are a Tenant Who Wants Out

• Read the lease for termination, early exit, assignment and subletting clauses, and for any personal guarantee.
• Ask the landlord about a negotiated surrender and put any agreement in writing.
• Consider an assignment or sublease. If the landlord refuses consent, the tenant, assignee or sub-tenant can apply to the Superior Court to decide whether consent was unreasonably withheld (section 23).
• Do not simply stop paying rent. After 15 days of non-payment, the landlord may be entitled to re-enter unless the lease says otherwise (section 18(1)).
• Get legal advice early, before the notice periods and defaults pile up.

If You Are a Landlord

• Check what the lease requires before you serve any notice, and follow it exactly.
• For a breach other than rent, serve a notice that specifies the breach, requires it to be remedied if it can be, and requires compensation (section 19(2)).
• Allow a reasonable time for the tenant to respond before you rely on forfeiture.
• Expect that the tenant may ask the court for relief from forfeiture (section 20).
• Keep records of notices, payments and communications, and take advice before you re-enter or ask the court for possession.

Frequently Asked Questions

Can a landlord re-enter a commercial unit for unpaid rent?

Unless the lease says otherwise, a lease is deemed to allow re-entry if rent stays unpaid for 15 days after it was due, even without a formal demand (Commercial Tenancies Act, section 18(1)). The tenant can ask the court for relief from forfeiture. A landlord should get legal advice before acting.

What notice does a landlord have to give for a breach other than rent?

The landlord must serve a notice that specifies the breach, requires the tenant to remedy it if it can be remedied, and requires compensation in money. The tenant must fail to respond within a reasonable time before the right can be enforced (section 19(2)).

Can a commercial tenant end a lease early?

Only as the lease allows, or by agreement with the landlord. A tenant may be able to assign or sublet, and consent to that is treated as not to be unreasonably withheld unless the lease expressly says otherwise (section 23).

What is relief from forfeiture?

It is an order of the Superior Court of Justice, on the tenant’s application, that can relieve the tenant from re-entry or forfeiture on terms the court thinks just (section 20(1)).

What can a landlord do if the tenant stays after the lease ends?

The landlord can apply to a Superior Court judge under Part III of the Act. After a summary hearing, the judge may order a writ of possession to the sheriff.

How much notice ends a monthly commercial tenancy?

A month’s notice to quit, ending with the month, is sufficient to end a monthly tenancy, and a week’s notice ending with the week ends a weekly tenancy (section 28).

Does this apply to residential leases?

No. The Commercial Tenancies Act deals with commercial tenancies. Residential tenancies follow the Residential Tenancies Act.

Related: our commercial lease service, our real estate litigation service and our resources hub.

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Legal Information, Not Legal Advice. This article is general information about ending commercial leases in Ontario, based on the Commercial Tenancies Act as shown on Ontario.ca on October 30, 2026. Your lease and your facts decide your rights, and notice and court steps are technical, so speak with a real estate lawyer before you act.