Summary
When a commercial lease goes wrong in Ontario, both sides have rules to work with. The Commercial Tenancies Act gives landlords a right to re-enter for unpaid rent, a remedy called distress, and a route to recover premises from a tenant who stays after the lease ends. It also gives tenants protection: a notice requirement before forfeiture for most non-rent breaches, and the right to ask the court for relief from forfeiture. Section 98 of the Courts of Justice Act adds a general power to relieve against forfeitures. Under the Act, a tenant's own application for relief from forfeiture (s. 20(1)), applications about consent to assign or sublet (s. 23(2)) and a landlord's application against an overholding tenant (s. 74(1)) are made to the Superior Court of Justice. This post walks through each remedy for landlords and tenants alike.
Who it affects
Commercial landlords, commercial tenants, subtenants and anyone who holds an interest under a commercial lease in Ontario. Sections 2 and 2.1 list tenancies and property the Act does not apply to, so confirm it covers yours. Lease wording often changes the default rules, so read the statute together with the lease.
For landlords: when rent is unpaid
Section 18(1) deems every lease, unless the parties agreed otherwise, to include a term that if rent stays unpaid for fifteen days after it was due, the landlord may re-enter the premises, even if no formal demand was made. The section lets the landlord "have again, repossess and enjoy" the premises "as of the landlord's former estate".
Section 18(2) adds re-entry rights for a disorderly-house conviction or an unlicensed business on the premises.
Ontario government guidance puts it this way: a landlord may change the locks on the 16th day after the day rent was due, and need not notify the tenant first. That is consistent with section 18(1), which allows re-entry once rent "remains unpaid for fifteen days" and "although no formal demand thereof has been made". Check the lease before acting: the fifteen-day rule applies only "unless it is otherwise agreed", and many leases set their own notice or cure terms.
Breaches other than rent: the notice requirement
For other breaches (repair, use, insurance and similar covenants), section 19(2) controls. A landlord's right of re-entry or forfeiture for a breach other than non-payment of rent is not enforceable, by action, entry or otherwise, unless the landlord first serves a notice that:
specifies the particular breach;
requires the tenant to remedy it, if it can be remedied; and
requires the tenant to compensate the landlord in money for the breach.
The landlord can enforce only if the tenant then fails, within a reasonable time, to remedy the breach and pay reasonable compensation. Without a notice that meets section 19(2), the right is not enforceable, so landlords should get the notice right and tenants should read it closely.
Distress: seizing goods for unpaid rent
Distress lets a landlord seize and sell a tenant's goods to recover rent arrears. The Act puts firm limits on it:
Reasonable only: "Distress shall be reasonable" (section 43).
On the premises: goods not on the premises at the time of distress generally cannot be distrained (section 47). If a tenant fraudulently or secretly removes goods to avoid distress, the landlord may seize them within thirty days wherever they are found, unless, before the seizure, they were sold in good faith and for valuable consideration to someone not involved in the fraud (section 48).
Exempt goods: goods exempt from seizure under execution are not liable to distress, except as the Act provides (section 30(1)), and a landlord generally cannot distrain goods belonging to someone other than the tenant, subject to exceptions (section 31(2)).
Notice and appraisal before sale: the goods can be sold only after five days' notice, if the tenant does not replevy them, and after appraisal by two sworn appraisers. Any surplus goes back to the owner (section 53).
After the lease ends: a landlord may distrain for arrears within six months after the lease ends, but only while the landlord's interest continues and the tenant who owes the arrears is still in possession (section 41).
Liability: a landlord who takes an excessive or wrongful distress is liable in damages to the owner of the goods (section 55).
Distress or termination?
Distress is a way to recover rent arrears; re-entry is a way to retake the premises. The Act does not expressly address whether both can be used for the same default. Ontario government guidance says a landlord can change the locks and end the tenancy, or seize and sell the tenant's property, but "They can't do both." The same guidance adds: "a landlord cannot evict and exercise distress at the same time." Before either side acts, get advice on which remedy fits and what the lease allows.
For tenants: locked out? Relief from forfeiture
Section 20(1) lets a tenant facing re-entry or forfeiture, for rent or any other cause, apply to the Superior Court of Justice for relief. The tenant can apply in the landlord's action or, if there is none, in its own action or application. The court may grant relief as it thinks fit, having regard to the parties' conduct under section 19 and all other circumstances, on terms such as payment of rent, costs, damages or compensation.
Key features of section 20:
Paying up stops a forfeiture proceeding for rent: if the landlord brings a proceeding to enforce re-entry or forfeiture for unpaid rent and the tenant pays into court all rent in arrears plus costs before judgment, the proceeding is stayed for good (section 20(4)).
Same lease: a tenant granted relief holds the premises under the existing lease, without a new lease (section 20(5)).
No contracting out: the section applies despite any lease term to the contrary (section 20(6)).
Exceptions: relief under section 20 does not extend to covenants against assigning, subletting or parting with possession, or to forfeiture on the tenant's bankruptcy or assignment for the benefit of creditors under the Assignments and Preferences Act, or on the taking of the tenant's interest in execution (section 20(7)).
Insurance: for a breach of a covenant to insure, relief requires that insurance be in place, or be put in place, as a term (section 20(8)).
Subtenants are covered too: under section 21, a subtenant can ask the court to vest the property in it, but never for a longer term than its original sublease, on conditions the court thinks fit.
Separately, section 98 of the Courts of Justice Act provides: "A court may grant relief against penalties and forfeitures, on such terms as to compensation or otherwise as are considered just." Relief under either statute is discretionary.
If the tenant goes bankrupt or makes an assignment for creditors
Section 38(1) limits the landlord's preferential lien for rent where a tenant makes an assignment for the general benefit of creditors, a company is ordered wound up, or a receiving order or authorized assignment in bankruptcy is made. The lien is restricted to arrears for the three months before and three months after the assignment, and then for as long as the assignee stays in possession. How this provision works alongside federal bankruptcy law needs case-specific advice.
When a tenant stays after the lease ends
If a tenant wrongfully refuses to leave after the lease has expired or been ended, the landlord may apply to a judge of the Superior Court of Justice in the county or district where the land is (section 74(1)). For landlords, this is a court route to possession. For tenants, it means a judge inquires into the matter before possession is ordered.
What it means
For landlords, the Act gives quick tools, but each one has conditions: the fifteen-day rule for rent, a proper section 19 notice for other breaches, and strict limits on distress. A misstep can expose a landlord to a damages claim or a relief application. For tenants, the Act offers real protection: notice before most forfeitures, a right to seek relief from the court, and a way to stop a rent-based forfeiture action by paying arrears and costs into court before judgment. For both, the lease wording matters as much as the statute. See also how commercial lease disputes arise.
Key takeaways
Unless the lease says otherwise, a landlord may re-enter when rent is fifteen days overdue (s. 18(1)).
For breaches other than rent, a landlord must serve a section 19(2) notice and give a reasonable time to comply.
Distress must be reasonable, is generally limited to goods on the premises, and requires notice and appraisal before sale (ss. 43, 47, 53).
Tenants can seek relief from forfeiture under CTA s. 20 and CJA s. 98; relief is discretionary.
Related posts: Commercial lease review in Ottawa · Assigning a commercial lease in Ontario
Frequently asked questions
How long must rent be unpaid before a commercial landlord can re-enter?
Under section 18(1) of the Commercial Tenancies Act, unless the lease says otherwise, a landlord may re-enter if rent remains unpaid for fifteen days after it was due, even without a formal demand. Many leases set their own terms, so the lease wording matters.
Does a landlord need to give notice before ending a lease for a breach other than rent?
Yes. Section 19(2) says a right of re-entry or forfeiture for a breach other than non-payment of rent cannot be enforced unless the landlord serves a notice specifying the breach, requiring it to be remedied if it can be, and requiring compensation, and the tenant fails to comply within a reasonable time.
Can a tenant get the lease back after the landlord re-enters?
A tenant can apply to the court for relief from forfeiture under section 20 of the Commercial Tenancies Act, and the court may grant relief on terms it thinks fit. Section 98 of the Courts of Justice Act also lets a court grant relief against penalties and forfeitures on just terms. Relief is discretionary, not automatic.
What is distress?
Distress is a landlord's remedy of seizing a tenant's goods on the premises for unpaid rent. The Commercial Tenancies Act sets limits: distress must be reasonable, goods generally must be on the premises, and goods can be sold only after five days' notice and an appraisal. A landlord who distrains excessively or wrongfully is liable in damages.
Whether you're a landlord or a tenant, book a consultation
For help with a lease, see our commercial leasing lawyers in Ottawa.
Francis Mehr LLP handles commercial lease matters for landlords and tenants in Ottawa and across Ontario. Book a consultation: call (613) 226-1011 or contact us.
Written by the lawyers of Francis Mehr LLP. Updated October 30, 2026. This post is general information about Ontario law as of that date, not legal advice. Every lease and every dispute turns on its own wording and facts; get advice on your situation before you act.
