Early Termination Clause: Can You Break Your Lease Legally?
An early termination clause sets the rules for leaving before your lease ends. In Ontario, tenants have more rights to break a lease than many landlords let on — and large "lease-break fees" are often unenforceable.
What Is an Early Termination Clause?
An early termination clause (sometimes called a "lease-break clause") specifies what happens if you want to leave before your lease term is up. Landlords often use these clauses to deter tenants from leaving early by imposing financial penalties.
However, in Ontario, the Residential Tenancies Act gives tenants significant rights to end a tenancy, and many common lease-break penalty clauses are not enforceable as written. Your landlord has a duty to mitigate — they cannot simply charge you rent for the remainder of your lease if the unit could be re-rented.
Your Rights as a Tenant in Ontario
- You can end a fixed-term tenancy by giving 60 days written notice before the end of the term (Form N9).
- You can sublet or assign your lease to another person — the landlord cannot unreasonably withhold consent.
- If your landlord refuses to allow an assignment, you can terminate with 30 days notice.
- Victims of domestic violence or sexual violence can end a tenancy with 28 days notice.
- Tenants in long-term care or supportive housing situations may have special early exit rights.
- If a landlord fails to provide the unit as agreed, you may have grounds to terminate without penalty.
The Duty to Mitigate
Ontario law requires your landlord to take reasonable steps to re-rent the unit after you leave — even if you break the lease early. They cannot simply leave it empty and charge you for the remaining months. If the landlord fails to mitigate, a court or LTB adjudicator may reduce or eliminate the amount you owe.
Red Flags to Watch For
- Large flat-fee “lease break penalty” (e.g., two or three months rent) — these are often unenforceable in Ontario
- Forfeiture of your entire security deposit for early termination
- Clause waives your right to sublet or assign the lease
- Clause requires “advertising costs” or “re-leasing fees” payable to the landlord
- Short notice periods (less than 60 days for fixed-term, less than 60 days for monthly)
- Clause prevents you from leaving even in safety-related circumstances
Questions to Ask Your Landlord
- →What is the process if I need to leave before the lease ends — do you accept assignments?
- →Is there a formal lease-break fee, or would you expect compensation only for actual vacancy losses?
- →How quickly do you typically re-rent a unit in this building?
- →Would you agree to add a mutual early-termination clause we both can invoke with proper notice?