Illegal drug activity on commercial property
Learn about the law on illegal drug activity on commercial properties, including the responsibilities of landlords and how the Act is enforced.
This information is not legal advice. Talk to a lawyer if you need legal advice on the Act.
Overview
The Measures Respecting Premises with Illegal Drug Activity Act, 2025 (the “Act”) prohibits commercial landlords from knowingly permitting their property to be used for illegal drug activity. The Act came into force on July 1, 2026.
The Act makes it illegal to possess, make, sell, import or transport anything intended for use in producing controlled substances, unless that activity is legally allowed.
The Act also makes it an offence to knowingly have money or property that comes from illegal activities under the Act. It introduces new provincial offences and penalties for both individuals and corporations, including fines of up to $250,000 or possible imprisonment.
Application of the Act
Who is a commercial landlord
Under the Act, a commercial landlord is landlord who leases property for commercial use.
Exclusion of certain landlords from the Act
The Act does not apply to certain types of properties, including:
- retirement homes
- long-term care homes
- premises providing homelessness prevention and support services, such as:
- emergency shelter providers
- health and social services providers
The Act applies only to commercial landlords.
Responsibilities of a commercial landlord
Landlords have a responsibility to ensure that their premises are safe for everyone and are not knowingly being used for illegal purposes.
When illegal drug production activities take place in commercial buildings, it can create dangerous, unsafe conditions for other tenants and businesses.
Landlords who knowingly permit illegal drug production on their premises will be held accountable.
Proactive measures commercial landlords can take
The Act does not create new obligations for landlords to proactively investigate their tenants. However, if a landlord suspects illegal activity is taking place and does not take steps to confirm it, they may be found to have knowingly permitted the activity.
If a landlord is charged with this offence, it is a defence to the charge that the landlord took reasonable measures to prevent the activity.
Proactive actions landlords can take to reduce the chance of illegal drug activity taking place on their property include:
- conducting inspections or installing security systems where appropriate
- training staff, property managers and board members on their responsibilities
- creating internal procedures for responding to suspected illegal activity
- consulting with legal counsel on leases, risk management and compliance
- updating lease agreements to allow termination if illegal activity is discovered
What landlords may notice on their premises
Signs landlords may notice when there is illegal drug production on site:
Physical indicators
- stronger unusual chemicals (for example ammonia)
- excessive condensation
- Blacked-out or covered windows
- corrosion around sinks or stoves
- modified ventilation systems
- unexplained structural changes
- unusual utility use (water or electrical)
Behavioral indicators
- tenants refusing entry
- high foot traffic at all hours
- rent cash payments
- short-term occupants rotating through the property
- refusing criminal checks
- avoiding other tenant interactions
- being secretive
Supply indicators
- large quantities of chemicals
- deliveries at night of chemicals
- dumping chemicals down sinks causing corrosion
- garbage (glass or chemical containers)
Other signs
- waste being dumped
- disheveled properties, especially on rural properties where no one is living but people are coming and going at all hours
- a driveway or parking lot not shoveled
If a commercial landlord suspects illegal drug activities
If a landlord becomes aware, or suspects illegal drug production on their premises, the landlord may contact the police.
Enforcement under the Act
The Act gives police additional enforcement tools to address illegal drug production.
If police have reasonable grounds to believe that a commercial landlord is knowingly permitting offences under s. 7.1(1)(a) of the Controlled Drugs and Substances Act, they can:
- seize items that may provide evidence of an offence
- order people to vacate premises (except residents who live there)
- close the premises if:
- a non-resident has been charged with an offence
- police believe the premises were used in committing the alleged offence
- apply to court to recover certain enforcement costs
Prescribed offences
The Act allows the government to list certain drug-related offences from the federal law as “prescribed offences”. These include offences related to production or trafficking of a controlled substances, their ingredients or cannabis.
Prescribed Offences O. Reg 144/26 makes it illegal to possess, produce, sell, import or transport anything if you intend to use it to produce a controlled substance, unless lawfully authorized
For more information on controlled substances and precursors, refer to the Controlled Drugs and Substances Act (CDSA) and Precursor Control Regulations.