Can the contract be terminated early without penalties?

Early termination of a lease agreement without penalties in Calgary is a complex issue that depends on many factors: the type of agreement, the grounds for termination, and compliance with legal procedures. In most cases, such termination may have financial consequences, but in certain situations, the law allows penalties to be avoided or significantly reduced.

Legal basis for rental relationships in Alberta

Residential Tenancies Act (RTA)

  • The main document defining the rights/obligations of tenants and landlords.
  • Contains a list of acceptable grounds and procedures for terminating a contract.

Principle of contractual obligations

  • A lease agreement is a legally binding document.
  • Unilateral withdrawal without grounds = breach of contract (possible penalties/compensation).

Types of lease agreements and termination options

Fixed-term agreements

  • Fixed start and end dates.
  • Automatically terminate without additional notice.
  • Early termination is only possible:
  • with the consent of the landlord,
  • if there are legal grounds (see below).
  • As a rule, early termination results in penalties!

Periodic agreements

  • Monthly: can be terminated by giving one month's written notice.
  • Weekly/annual: 1 week or 60 days respectively.

Legal grounds for termination without penalty

Domestic violence (Safer Spaces Certificate)

  • Victims of domestic violence have the right to terminate their lease early without penalty.
  • You must obtain a Certificate Confirming Grounds to Terminate Tenancy (through a court or a professional—a doctor, social worker, police).
  • Provide the landlord with at least 28 days' written notice with the certificate.

Material breach by the landlord (minimum housing standards)

  • Termination is possible without penalty if:
  • minimum housing standards are breached,
  • an inspector's order is ignored,
  • the right to peace or maintenance of the property is breached.
  • Procedure: give the landlord 14 days' written notice / contact RTDRS or the court.

Impossibility of performing the contract (frustration)

  • The contract is terminated without penalty if it has become impossible to perform through no fault of the parties:
  • Destruction of the property by natural forces
  • Prohibition by government regulations
  • Radical changes in the law

Unsuitability for habitation

  • If the property has become dangerous to health or life (toxic mold, lack of water, electricity, serious damage).
  • It is important to document the problems (photos, correspondence, reports).

Mutual agreement and negotiations

  • Reaching an amicable agreement with the landlord is the most reliable way to avoid penalties.
  • When appropriate:
  • The tenant gives timely written notice.
  • Helps find a new tenant/compensates for inconvenience.
  • All agreements must be in writing (address, dates, conditions, signatures!).

Help in finding a new tenant

  • The tenant can reduce losses by offering an alternative (sublease, transfer of contract).
  • The landlord is obliged to make efforts to re-let the property (“damage mitigation”).

Alternatives to termination of the contract

Subletting

  • Temporary transfer of the property to another resident (responsibility lies with the tenant).
  • Requires the written consent of the landlord (14 days to respond).

Assignment

  • Complete transfer of all rights/obligations to a new tenant (the original tenant may be released from their obligations with the consent of the landlord).

Financial consequences of early termination

  • Many contracts contain penalties: 1–3 months' rent, commissions, loss of deposit.
  • Liability sometimes continues until the end of the contract term (if no new tenant is found).
  • Active cooperation significantly minimizes costs.

Procedural requirements

  • Written notice: address, date, signature, reason (if necessary).
  • Terms: weekly contract — 1 week, monthly — 1 month, annual — 60 days.
  • Delivery: in person/by registered mail/by the method specified in the contract.

Legal remedies

  • RTDRS: quasi-judicial body for dispute resolution (up to $100,000).
  • Alberta Court of Justice / Court of King's Bench: for complex or high-value cases.

Documentation and evidence

  • Keep the original contract, correspondence, receipts, photos/videos of damage or problems.
  • Record all attempts to reach an agreement in writing.

Special situations

  • Military service: no specific law (some federal acts may apply).
  • Change of job, financial difficulties: these are not in themselves automatic grounds for early termination without penalty — negotiate with the landlord, consider subletting or assignment.

Practical tips

  • Read the contract carefully before signing.
  • Check for clauses on early termination, subletting, or transfer.
  • Plan for changes in your life in advance and notify your landlord.
  • Document every action.
  • Consult a lawyer or tenant rights organization in case of doubt.

Conclusion

Early termination of a lease without penalties in Calgary is only possible in EXCEPTIONAL cases (domestic violence, significant violations by the landlord, frustration of the contract, unsuitability of the property, mutual voluntary agreement). If your case does not fall under these grounds, try to maintain an open dialogue, assist in finding a replacement, and formalize all agreements in writing. This will minimize financial risks and conflicts.