Ending a Tenancy by Mutual Agreement in Nova Scotia: A Tenant’s Guide

Nova Scotia’s rental market is currently defined by a severe housing shortage and a strict Rent Cap (5% for 2025). Because of this environment, the rules for ending a tenancy have become a critical battleground.

Unlike Ontario or BC, which have widely used government forms for mutual agreements, Nova Scotia does not have a single "Mutual Agreement" form for general cases. Instead, ending a tenancy by agreement often involves a private written contract or specific forms for demolition/renovations.

Understanding how to navigate this—especially if you are on a Fixed-Term Lease—is essential to protecting your rights and your wallet.

How a Mutual Agreement Works in Nova Scotia

A mutual agreement is a voluntary contract where the landlord and tenant agree to terminate the lease on a specific date. This overrides the standard notice periods required by the Residential Tenancies Act.

• No "Standard" Form: For a general mutual agreement (e.g., you just want to leave early), there is no specific "Form X" mandated by the Residential Tenancies Program. You must create a written agreement signed by both parties.

• Exception (Renovations): If the agreement is specifically for demolition, repairs, or renovations, you should use Form DR5: Agreement to End Tenancy for Demolition, Repairs or Renovations.

• Voluntary: A landlord cannot force you to sign an agreement to terminate.

The "Fixed-Term Lease" Loophole

This is the most important concept for Nova Scotia tenants in 2025.

1. Automatic Termination:

In Nova Scotia, a Fixed-Term Lease (e.g., May 1 to April 30) ends automatically on the end date. Neither you nor the landlord needs to give notice. You simply have to move out unless you sign a new lease.

• Why this matters: Landlords often prefer fixed-term leases because they allow them to bypass the Rent Cap (5%). By letting the lease end and finding a new tenant, they can raise the rent to market rates.

2. Breaking it Early:

If you are in the middle of a fixed-term lease and want to leave, you cannot just give notice (Form C). You are liable for the rent until the end of the term.

• The Solution: You must negotiate a Mutual Agreement to Terminate with your landlord. Since the market is hot, landlords will often agree to let you leave early so they can re-rent the unit at a higher price to someone else.

"Cash for Keys" in Nova Scotia

Because of the 5% Rent Cap (extended through 2027), long-term tenants in Periodic (Year-to-Year or Month-to-Month) leases are paying rents far below market value.

Landlords cannot easily evict these tenants. As a result, they may offer you a "Cash for Keys" deal: a lump sum payment to sign a mutual agreement and leave voluntarily.

• Is it legal? Yes. It is a private contract.

• Should you take it? Be careful. While the cash might look good, finding a new apartment in Halifax or elsewhere in NS will likely cost you significantly more than your current rent-capped unit.

How to Draft the Agreement

Since there is no official form for a standard mutual termination, you must draft one. It should include:

1. Title: "Agreement to Terminate Lease."

2. Parties: Full names of Landlord and Tenant.

3. Address: Full rental address.

4. Termination Date: "The tenancy will end on [Date] at [Time]."

5. Release of Liability: "The Tenant is released from all obligations under the lease after [Date], including future rent."

6. Signatures: Both parties must sign and date it.

The Risks for Tenants

1. Security of Tenure

If you have a Periodic Lease (Year-to-Year or Month-to-Month), you have "Security of Tenure." The landlord cannot evict you just because the lease year is over. By signing a mutual agreement, you voluntarily give up this powerful protection.

2. Renovictions

If your landlord asks you to leave for renovations, do not sign a simple mutual agreement. Use Form DR5. This form ensures you understand your rights and the compensation involved. If you just sign a generic letter, you might waive your right to compensation or first refusal.

Frequently Asked Questions (FAQ)

1. Can I assign (sublet) my lease if the landlord won't let me break it?

Yes. You can ask to assign your lease to a new tenant. If the landlord refuses to consent to the assignment arbitrarily, you can give Notice to Quit (usually 1 month) to end the tenancy early.

2. Does the 5% Rent Cap apply to me?

Yes, if you are an existing tenant renewing your lease (even a fixed-term one, if the landlord offers a renewal). It does not apply if you are a new tenant moving into a new unit.

3. What form do I use for Domestic Violence?

If you need to leave due to domestic violence, do not use a mutual agreement. Use Form Q (Tenant’s Notice to Quit - Early Termination) accompanied by a certificate from Victim Services. This legally ends the lease with 1 month's notice without penalty.

4. When do I get my security deposit back?

The landlord must file a claim or return your deposit within 10 days of the tenancy ending. If you sign a mutual agreement, ensure you provide your forwarding address in writing immediately so this 10-day clock starts.

References:

• Government of Nova Scotia: Residential Tenancy Forms (Form DR5, Form Q)

• Residential Tenancies Act (Nova Scotia)

• Legal Information Society of Nova Scotia: Rent Cap and Renovictions

• Access Nova Scotia: Ending a Tenancy Guide

Source: www.dv.support

LinkedIn: www.linkedin.com/company/dvsupportofficial