Ending a Tenancy by Mutual Agreement in Manitoba: A Tenant’s Guide
A guide to mutual agreements to end tenancy in Manitoba. Learn about breaking fixed-term leases, lease assignments, "cash for keys," and RTB rules for voluntary termination.
In Manitoba, the Residential Tenancies Act creates a highly regulated environment for rental housing. Unlike some other provinces where "breaking a lease" is a vague concept, Manitoba has specific rules for fixed-term renewals, assignments, and evictions.
However, there is one method that bypasses most of the standard forms and notice periods: the Mutual Agreement to End Tenancy.
While the Residential Tenancies Branch (RTB) provides strict forms for evictions (like Form 10) or landlord use (Form 11A), they do not provide a specific, mandatory form number for a mutual agreement. This guide explains how to properly navigate this voluntary process in 2025 without putting your housing security at risk.
What is a Mutual Agreement in Manitoba?
A mutual agreement is exactly what it sounds like: a voluntary contract where both the landlord and tenant agree to terminate the tenancy on a specific date. This date can be legally binding, even if it falls in the middle of a fixed-term lease or doesn't match standard notice periods.
Key Features:
No "Official" Form: Unlike BC’s "RTB-8" or Ontario’s "N11", Manitoba does not have a prescribed form for this. It is usually a written letter or document drafted by the landlord or tenant.
Overrides the Lease: A valid mutual agreement replaces the end date of your current tenancy agreement (Form 1).
Voluntary: A landlord cannot force you to sign this. If they want you out for a specific reason (like non-payment or renovations), they must use the official Notice of Termination forms (Form 8, Form 11A, etc.).
When to Use a Mutual Agreement
1. Breaking a Fixed-Term Lease
In Manitoba, a fixed-term tenancy (usually one year) does not allow you to simply "give notice" to move out early. You are generally responsible for rent until the lease ends.
The Assignment Alternative: Manitoba law gives you the right to assign (transfer) your lease to a new tenant. If you ask your landlord to assign your lease and they refuse, you are often allowed to end the tenancy with notice (usually one rental payment period).
The Mutual Agreement: If you don't want the hassle of finding a new tenant to assign the lease to, you can ask your landlord for a Mutual Agreement. If they believe they can rent the unit for a higher price (rent control rules permitting), they may agree to let you walk away penalty-free.
2. Landlord Sale or Renovation ("Cash for Keys")
Landlords in Manitoba often want vacant possession to sell a property or renovate it. However, the Residential Tenancies Act gives tenants strict protections. For example, a landlord moving into the unit (Form 11A) must often wait until the fixed term ends to evict you.
The Negotiation: A landlord might offer you a mutual agreement to leave sooner. Since you are doing them a favor, you can negotiate "Cash for Keys". This is a payment to cover your moving costs or a few months of rent difference, in exchange for signing the agreement to terminate voluntarily.
How to Draft the Agreement
Since you cannot download an official RTB form for this, you must ensure your written agreement contains the correct legal elements to be enforceable.
Required Elements:
Clear Intent: State clearly that "The Landlord and Tenant mutually agree to terminate the tenancy."
Property Details: Full address of the rental unit.
Termination Date: The exact date and time (e.g., "1:00 PM on March 31, 2025") the tenant will vacate.
Signatures: Both parties must sign and date the document.
Recommended "Safety" Clauses:
Rent Liability: Explicitly state that the tenant is released from all future rent obligations after the termination date.
Condition of Unit: If possible, agree on a pre-move-out inspection to ensure you get your security deposit back without surprise deductions.
The Risks
1. Immediate Enforcement (Order of Possession)
If you sign a written agreement to move out and then fail to leave (e.g., your new apartment falls through), the landlord can apply to the Residential Tenancies Branch for an Order of Possession. Because you signed the agreement, the RTB is likely to grant this order quickly, allowing the landlord to enforce your eviction.
2. Waiving "Right of First Refusal"
If you are leaving due to renovations (Form 11C), you normally have the "Right of First Refusal" to move back in after the work is done at the same rent (or slightly adjusted). If you sign a mutual agreement instead of receiving the proper Form 11C notice, you likely lose this right unless you write it into the agreement.
Step-by-Step: Executing the Agreement
Check Your Rights: Before signing, check if you are entitled to compensation. For example, if the landlord is demolishing the unit, you might be entitled to moving expenses under the Act. A mutual agreement might waive this unless you are careful.
Negotiate Terms: Agree on the date and any financial compensation.
Sign the Document: Create two copies of the written agreement. Both parties sign both copies.
File (Optional): You do not need to file this with the RTB immediately, but keep it safe. It will be the primary evidence if a dispute arises.
Frequently Asked Questions (FAQ)
1. Is there an official RTB form number for a mutual agreement?
No. While there are standard forms for the Tenancy Agreement (Form 1) and Termination Notices (Forms 8, 10, 11), there is no prescribed form for a mutual agreement. A simple written contract suffices.
2. Can I break my lease if I find a replacement tenant?
Yes. You can ask to assign your lease. If the landlord consents, you find a new tenant and transfer the lease. If the landlord refuses to let you assign the lease, you can generally end the tenancy with notice (often one rental payment period).
3. What if I sign an agreement but can't move out?
The landlord can apply for an Order of Possession. The RTB will usually enforce the written agreement you signed. You should only sign if you are certain you can vacate on that date.
4. Can a landlord raise my rent if I refuse to sign a mutual agreement?
No. Manitoba has strict rent control guidelines. A landlord cannot arbitrarily raise rent to punish you. They must follow the annual rent increase guidelines or apply for an above-guideline increase with justification.
5. Is "Cash for Keys" legal in Manitoba?
Yes. It is a private contract. If a landlord wants you to leave voluntarily (waiving your security of tenure), you can negotiate a payment. This is common when landlords want to sell a property quickly.
6. Do I get my deposit back immediately?
The landlord must return your security deposit (plus interest) within 14 days of the tenancy ending, provided there is no damage. Signing a mutual agreement does not change this rule.
References:
Manitoba Residential Tenancies Branch: Forms (Form 1, 10, 11A)
The Residential Tenancies Act (Manitoba)
Manitoba.ca: Termination by Landlord
Pillar Property Management: Breaking a Lease in Winnipeg
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