No, the death of a tenant does not automatically cancel the lease. The "Notice regarding the death of a tenant" form available at the
Régie du logement in PDF format
must be filled out within 6 months of the death and submitted to the lessor.
The lease can be cancelled by paying the owner the equivalent of 2 months' rent or by reaching another agreement. A person who lived with the tenant may become continue to occupy the dwelling by giving the owner written notice of his or her intention
to take over the lease within 2 months of the death.
To learn more, see Settling an estate.