Ending a Tenancy by Mutual Agreement in New Brunswick: A Tenant’s Guide

In New Brunswick, the relationship between landlords and tenants is regulated by the Residential Tenancies Act. While the province provides mandatory forms for signing a lease (the Standard Form of Lease) and specific forms for eviction, there is no specific government form dedicated solely to a "Mutual Agreement to End Tenancy."

This often leads to confusion. Many tenants assume they are stuck in a fixed-term lease until the end date. However, you can end a tenancy early if both you and your landlord agree to it. This guide explains how to navigate this process, draft your own agreement, and negotiate "Cash for Keys" in cities like Moncton, Fredericton, and Saint John.

How a Mutual Agreement Works in New Brunswick

A mutual agreement is a voluntary contract where the landlord and tenant agree to terminate the lease on a specific date, bypassing the standard notice periods required by law.

• No Official Form: Unlike Ontario’s "N11" or BC’s "RTB-8", New Brunswick’s Tenant and Landlord Relations Office (TLRO) does not provide a numbered form for mutual agreements. Instead, you must create a written agreement signed by both parties.

• Breaking a Fixed-Term Lease: In New Brunswick, fixed-term leases automatically end on the date specified in the lease. You generally cannot give "notice" to leave early unless you have the landlord’s permission. A mutual agreement is the safest way to break a fixed-term lease without being liable for the remaining rent.

• Voluntary: A landlord cannot force you to sign an agreement to leave early. If they want to evict you, they must use the proper Notice to Vacate or Notice of Termination forms and have a valid reason (e.g., non-payment of rent).

When to Use a Mutual Agreement

1. Breaking a Fixed-Term Lease Early

If you signed a one-year lease but need to move for work or family reasons after six months, you are technically responsible for the rent for the remaining six months.

• The Assignment Option: You can ask your landlord for permission to assign your lease to a new tenant. If the landlord refuses your request to assign the lease, you may have the right to end the tenancy with notice.

• The Mutual Agreement: If you don't want to find a replacement tenant, you can ask your landlord to sign a mutual agreement. In a tight rental market, landlords often agree because they can re-rent the unit quickly, potentially at a higher rate.

2. "Cash for Keys" (Landlord Sale or Renovation)

If your landlord wants to sell the property or renovate it, they might ask you to leave before your fixed term is up. Since they generally cannot force you out until the lease ends (and must strictly follow notice rules), you have leverage.

• The Negotiation: You can agree to sign a mutual termination agreement in exchange for compensation. This is often called "Cash for Keys." It is a legal, private contract where the landlord pays you to waive your right to stay until the end of your lease.

How to Draft the Agreement

Since the TLRO does not provide a downloadable form for this specific situation, you must draft a clear written document to ensure you are legally protected.

Required Elements:

1. Title: "Agreement to Terminate Lease."

2. Parties: Full legal names of the Landlord and Tenant(s).

3. Address: The complete address of the rental unit.

4. Termination Date: The exact date and time the tenancy will end (e.g., "12:00 PM on May 31, 2025").

5. Release of Liability: A statement that the tenant is released from all future rent obligations after the termination date.

6. Signatures: Signatures and dates from both the landlord and all tenants.

Sample Clause:

"The Landlord and Tenant mutually agree to end the tenancy at [Address] on [Date]. The Tenant agrees to vacate the property by this date, and the Landlord agrees to release the Tenant from all further obligations under the lease, including future rent payments."

The Risks for Tenants

1. Binding Contract

Once you sign a mutual agreement, it is a binding contract. If you fail to move out on the agreed date, the landlord can apply to the Residential Tenancies Tribunal for an Eviction Order. Because you signed the agreement, the Tribunal will likely enforce it quickly.

2. Security Deposit

Signing a mutual agreement does not automatically mean you get your security deposit back. The landlord still has the right to claim against the deposit for damages or unpaid utilities.

• Tip: Include a clause in your agreement stating that a walk-through inspection will be done on the move-out date to settle the security deposit immediately.

Step-by-Step: Executing the Agreement

1. Negotiate: Discuss the exit date with your landlord. If they approached you to leave, ask for moving expenses.

2. Draft the Letter: Write out the agreement including the points above.

3. Sign: Both parties sign two copies. Keep one for your records.

4. Cancel Payments: Stop your post-dated cheques or automatic transfers for the months after your new move-out date.

5. Move Out: Vacate on time. The landlord can apply for eviction if you overstay even by one day.

Frequently Asked Questions (FAQ)

1. Is there an official form for mutual agreements in New Brunswick?

No. While there are official forms for Notice of Termination (Form 8) and Notice to Vacate, there is no specific form for a mutual agreement. A written letter signed by both parties is the standard method.

2. Can I just move out if I give 3 months' notice?

Only if you have a year-to-year (periodic) lease. If you have a fixed-term lease (e.g., a signed one-year contract), you cannot just give notice to end it early. You must either wait for the term to end, assign the lease, or sign a mutual agreement with your landlord.

3. What if I am a victim of domestic violence?

You do not need a mutual agreement. You can end your lease early (even a fixed-term one) by giving one month's notice and providing a specific certificate (or Third-Party Declaration) to your landlord. There is a specific form for this provided by the TLRO.

4. Can my landlord keep my security deposit if I break the lease?

If you break the lease without a mutual agreement, yes—the landlord can claim unpaid rent against your deposit. If you sign a mutual agreement, you are no longer "breaking" the lease, so they can only keep the deposit for damage to the unit.

5. Is "Cash for Keys" legal in NB?

Yes. It is a private negotiation. If a landlord wants you to leave for their convenience (e.g., to sell the house vacant), you can ask for compensation to cover your costs.

6. Where can I get help?

You can contact the Tenant and Landlord Relations Office (TLRO) at 1-888-762-8600 or via email at renting@gnb.ca for advice on your rights.

References:

• Government of New Brunswick (GNB): Lease Information & Ending a Lease

• GNB: Find a Form (Standard Form of Lease, Notice of Termination)

• Residential Tenancies Act (New Brunswick)

• Public Legal Education and Information Service of New Brunswick (PLEIS-NB)

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