Ending a Tenancy by Mutual Agreement in Newfoundland & Labrador: A Tenant’s Guide

In Newfoundland and Labrador, tenancy laws are overseen by Digital Government and Service NL (often just called "Service NL"). While the province provides strict forms for eviction (Landlord's Notice to Terminate) or for a tenant giving notice (Tenant’s Notice to Terminate), there is no specific government form for a mutual agreement to end a tenancy.

This often leads to confusion. Tenants in fixed-term leases often believe they are trapped until the lease expires. However, the Residential Tenancies Act permits landlords and tenants to end a lease early if both parties agree in writing. This guide explains how to navigate this process, how to draft the agreement, and when to negotiate "Cash for Keys."

How a Mutual Agreement Works in NL

A mutual agreement is a voluntary contract. It allows you to set a move-out date that overrides the standard notice periods required by law.

• No "Official" Form: Unlike other provinces that use numbered forms (like the N11 or RTB-8), Newfoundland and Labrador does not have a prescribed form for mutual termination. You must create a written agreement signed by both parties.

• Fixed-Term Rules: In NL, a fixed-term lease (e.g., 12 months) is binding. You generally cannot give notice to leave early without a specific reason (like ill health or domestic violence). If you leave early without an agreement, you may be liable for the landlord's lost rent.

• Immediate Effect: A mutual agreement is effective as soon as it is signed. It replaces the original end date of your lease.

When Should You Use It?

1. Breaking a Fixed-Term Lease

If you need to move out before your lease ends (e.g., for a new job or to buy a house), you cannot simply give one month's notice. In a fixed-term lease, the tenant is required to give 2 months' notice before the end of the term.

• The Solution: You can approach your landlord and ask for a Mutual Agreement to Terminate. If the rental market in St. John’s or Corner Brook is strong, the landlord may agree to release you early so they can re-rent the unit to someone else.

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

Landlords often want to sell their property or complete major renovations that require the unit to be empty.

• The Rules: To evict you for "demolition" or "change of use," the landlord normally must give 6 months' notice (for mobile home sites) or substantial notice for other units.

• The Negotiation: If your landlord wants you out faster than the law allows, you can negotiate a "Cash for Keys" deal. You agree to sign a mutual termination letter in exchange for financial compensation (e.g., moving costs or a month of free rent).

How to Draft the Agreement

Since you cannot download a form from the Service NL website, you must draft a clear letter to ensure the agreement is legally binding.

Required Elements:

1. Title: "Agreement to Terminate Rental Agreement."

2. Parties: Full names of the Landlord and Tenant.

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

4. Termination Date: "The parties agree that the tenancy will end on [Date] at [Time]."

5. Release of Liability: A clause stating the tenant is not responsible for rent after the move-out date.

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

Sample Clause:

"The Landlord and Tenant mutually agree to terminate the rental agreement for [Address] effective [Date]. The Tenant agrees to vacate by this time, and the Landlord agrees to release the Tenant from any further obligation to pay rent after this date."

The Risks for Tenants

1. It is Irreversible

Once you sign a written agreement to leave, it is binding. If you fail to move out, the landlord can apply to the Residential Tenancies Office for an eviction order based on your written agreement. You cannot usually change your mind because your new apartment fell through.

2. Security Deposit

Signing a mutual agreement does not guarantee you get your deposit back. The landlord must still return your deposit within 10 days of you moving out, or file a claim with Service NL to keep it.

• Tip: When you sign the mutual agreement, ask the landlord to do a pre-inspection right then to confirm there are no damages.

Frequently Asked Questions (FAQ)

1. Is there an official form for this?

No. While Service NL provides forms for Standard Termination Notices (for landlords and tenants), there is no specific form for a mutual agreement. A written letter is the standard method.

2. Can I break my lease for medical reasons?

Yes. You do not need a mutual agreement for this. If you need to move due to ill health or admission to a care home, you can end a fixed-term lease with one month's notice by providing a doctor's note and using the Tenant’s Notice to Terminate – Special Circumstance form.

3. What about domestic violence?

If you are fleeing family violence, you can end your lease early with 30 days' notice. You must obtain a certificate from the Director of Victim Services. Do not rely on a "mutual agreement" for this; use the official Special Circumstance process to ensure your legal protection.

4. Can I sublet if the landlord won't agree to end the lease?

Yes. You can ask to sublet (assign) your lease. The landlord cannot unreasonably refuse your request. If they do refuse without a good reason, you may have grounds to end the tenancy.

5. How much notice do I normally give?

If you are not signing a mutual agreement:

• Month-to-Month: 1 month's notice.

• Fixed-Term: 2 months' notice before the end of the term.

References:

• Government of Newfoundland and Labrador: Tenant’s Notice to Terminate (Standard & Special Circumstance)

• Government of Newfoundland and Labrador: Landlord’s Notice to Terminate

• Public Legal Information Association of NL (PLIAN): Rental Agreements

• Residential Tenancies Act, 2018

Source: www.dv.support

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