Frustration of Contract by Fire (LTB)

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Date Retrieved: 2024-11-23
CLNP Page ID: 1952
Page Categories:
Citation: Frustration of Contract by Fire (LTB), CLNP 1952, <>, retrieved on 2024-11-23
Editor: Smcgrory
Last Updated: 2022/07/04

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Order under Section 9(2) Residential Tenancies Act, 2006 File Number: TEL-32649-12

Y.Y. (the 'Landlord') applied for an order to determine whether the Residential Tenancies Act, 2006 (the 'Act') applies.

This application was heard in Whitby on February 26, 2013. The Landlord and A.T. and L.W. (the 'Tenants') attended the hearing.

Evidence:

The following evidence was given at the hearing. There was an agreement between the parties that the Tenants would rent the unit from the Landlord. The Tenants did pay rent for the right to occupy the rental unit commencing June 1, 2012. On December 1, 2012 there was a fire in the rental unit that rendered the unit uninhabitable. The fire was caused by a cooking incident involving the Tenants. The damage was extensive and still has not been fixed. The lower unit was also damaged and had to be vacated by the tenants in that unit. It will be several months before the complex can be habitable.

The Tenants have been living in a Hotel and their insurance company is paying for the repairs as well as their current expenses related to housing.

Determinations:

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.

It is ordered that:

1. The Act applies to the unit from June 1, 2012 until December 1, 2012.

March 4, 2013