Signing a lease in Ontario is a major step, but what happens if your landlord wants to back out before you move in? This comprehensive guide explains key rules under Ontario law, your protections as a tenant, and what you should do if faced with this situation.

Understanding Lease Agreements and Your Rights in Ontario

In Ontario, a lease—also called a tenancy agreement—is a legal contract between a landlord and a tenant. Once both parties have signed, it is generally binding from the start date, even if you haven't moved in yet. The legislation governing most residential tenancies in the province is the Residential Tenancies Act, 2006^[1].

The tribunal responsible for tenant and landlord disputes is the Landlord and Tenant Board (LTB) in Ontario.^[2]

Can a Landlord Cancel a Lease Before Move-In?

Once a lease is signed, neither the landlord nor the tenant can just cancel it at will before the move-in date. If your landlord tries to back out without a legal reason, they may be breaching the contract. However, there are some exceptions where a landlord may legally refuse occupancy.

• Mutual Agreement: If both you and your landlord agree to end the lease before move-in, you can both sign a simple, written agreement to end the tenancy early.
• Legal Reasons: If you gave false information on your application, or broke a key condition before moving in, a landlord may have grounds to terminate, but proper legal procedures and notice are required.

Outside of these reasons, a landlord is not allowed to unilaterally cancel a lease simply because they changed their mind or received a better offer.

What Happens to Your Deposit?

If a landlord cancels your lease without a legal basis, you are entitled to get your rent deposit or any other payments back. For full details on deposit types, see Understanding Rental Deposits: What Tenants Need to Know.

Essential Steps After Signing the Lease

After you sign, your rights and protections begin. When preparing for move-in, you'll want to know what comes next. Check out What Tenants Need to Know After Signing the Rental Agreement for guidance on next steps and documentation.

What If Your Landlord Tries to Cancel?

If your landlord attempts to cancel your lease before you move in and you have not agreed, here's what you can do:

• Contact your landlord in writing and request a clear explanation, keeping a copy for your records.
• Request the immediate return of any deposits or advanced rent payments.
• If the landlord refuses, you can apply to the Landlord and Tenant Board for help.

Official Forms You May Need

• Application About Tenant Rights (Form T2): Used when a landlord breaches your rights under the Residential Tenancies Act, 2006. For example, if your landlord refuses to let you move in after you've signed the agreement, you can use Form T2 to apply for a remedy with the Landlord and Tenant Board.
• Tenant Application for a Rent Deposit Return (part of Form T1): If your landlord keeps your deposit after cancelling unlawfully, use the Form T1 to ask for its return.

Submit completed forms directly to the Landlord and Tenant Board online, in person, or by mail, following the instructions on each form.

Lease Cancellations: Common Scenarios

• Landlord finds a higher-paying tenant: This is not a legal reason to cancel your lease. The original lease stands unless you agree otherwise.
• Landlord claims you misrepresented facts: If the landlord can prove you provided false information or breached a condition, they may pursue cancellation through the LTB, not just by notifying you informally.
• Personal situations: Emergencies or changes in landlord circumstance (such as deciding to sell) do not provide automatic legal grounds for lease cancellation before move-in.

In all situations, legal process and notice requirements must be followed.

Your Options if the Landlord Cancels

If your lease has been cancelled unlawfully:

• Ask for your deposit back in writing with a deadline for response.
• If funds aren't returned, file the appropriate application with the LTB.
• Gather supporting documents, such as a copy of the lease, correspondence, and proof of payment.

Tenants may also ask for compensation for out-of-pocket expenses, such as extra moving or storage costs, if the landlord's actions have caused a financial loss.

Related Resources and Next Steps

For more about your overall rights and responsibilities, see Tenant Rights in Ontario. When you’re ready to start looking for a new place, Houseme - your rental solution in Canada offers a safe and convenient way to view available rentals coast to coast.

FAQ: Ontario Lease Cancellations Before Move-In

1. Can a landlord legally cancel my lease before I move in if I have signed it?
   Typically, no. Once signed, a lease is binding unless both parties agree to end it or one party legally proves a breach justifies ending it early.
2. If my landlord cancels, am I entitled to my deposit back?
   Yes, you should receive any deposits or advance payments in full unless you committed a serious breach and the Landlord and Tenant Board rules otherwise.
3. What should I do if my landlord refuses to return my deposit?
   Request the money back in writing. If not returned, file Form T1 (Tenant Application for a Rent Deposit Return) with the Landlord and Tenant Board.
4. What if my landlord claims I provided false information?
   The landlord must prove it and may need to apply to the LTB. They cannot simply cancel the lease without due process.
5. How long does the LTB process take?
   Timelines can vary, but filing promptly and supplying all documents will help resolve issues more quickly.

Key Takeaways

• Both landlords and tenants are bound by signed leases in Ontario—neither can just cancel without legal cause.
• If your lease is cancelled unlawfully, you are entitled to your deposit back and may use the Landlord and Tenant Board's forms for help.
• For support, understand your rights and always keep documentation of all communications.

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB) – Ontario: Official tribunal for tenancy disputes, applications, and forms.
• Ontario Government – Renting in Ontario: Your Rights: Tenant rights and guidance.
• Advocacy Centre for Tenants Ontario (ACTO): Information and support services for tenants.
• Explore listings and new rental opportunities with Houseme - your rental solution in Canada.

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1. Residential Tenancies Act, 2006
2. Landlord and Tenant Board (LTB) – Ontario

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