Lease Termination - Re: Commercial Tenancy

911 Priority Corporation v. Murray, 2019 ONSC 3585 (CanLII)

[33] If rent remains unpaid for over 15 days, unless otherwise agreed, a landlord may lawfully re-enter and take possession without any formal demand for payment. (See: Commercial Tenancies Act, R.S.O. 1990, c. L.7. s. 18(1) - (the Act))

[34] “Otherwise agreed” means the landlord and tenant agreed to a termination provision in the lease that is different from the statutory provision, such as written notice and a period to cure the default. (See: 772067 Ontario Ltd. v. Victoria Strong Manufacturing Corp., [2017] O.J. No. 2719, aff’d on other grounds 2018 ONCA 36)

[35] A landlord who re-enters premises before the expiration of a notice period prescribed by a lease agreement enters the premises unlawfully and wrongfully terminates the lease. (See: Buck or Two Properties Inc. v. 1281632 Ontario Limited, 2007 CanLII 54077 at para 9)

[36] A landlord and tenant can contract out of the waiver provisions of the Act. If they do so, a landlord’s acceptance of rent after notice to a tenant of breach does not constitute a waiver. (See: Kiryat Developments Inc. v. O’Brien’s Restaurants Inc., 1987 CarswellOnt 2243 at paras. 21 to 22)