Lease Breaking: Your Nb Rights

Breaking a lease in New Brunswick, Canada, can be a tricky process. Both landlords and tenants must follow specific procedures to end a lease agreement properly. While it is possible to break a lease early, it requires proper notice, and there may be financial penalties involved. The amount of notice needed depends on the type of lease agreement, ranging from one week to three months. If a tenant breaks a lease early without a valid reason, the landlord may take them to small claims court for the remainder of the rent due. However, if a tenant has lived in the rental unit for more than five years, they can end the lease with only one month's notice without providing a reason.

Lease termination notice requirements

To terminate a lease in New Brunswick, a written Notice of Termination must be provided. Both the landlord and the tenant must each have a signed copy of the lease. The amount of notice required depends on the type of lease agreement and how long the tenant has lived in the rental unit.

Fixed-term lease

A fixed-term lease automatically ends at the end of the agreed period.

Week-to-week lease

You must provide written notice at least one day before the end of a week, to be effective on the last day of the next week. It requires a full rental week of notice.

Month-to-month lease

At least one rental month's written notice before the end of a month, to be effective on the last day of the month. It requires a full rental month of notice.

At least three months' written notice before the end date of the lease, to be effective on the last day of the lease agreement.

Long-term tenancies (occupied by the same tenant for five consecutive years or more)

The landlord must provide at least three months' written notice to be effective on the last day of the third month.

The tenant must provide at least one rental month's written notice before the end of a month, to be effective on the last day of the month. It requires a full rental month of notice.

Mobile home site lease

A tenant must give two months of notice. A landlord must give six months of notice and provide a reason for ending the lease. The only acceptable reasons for ending the lease are if the mobile home site is to be used for something other than a mobile home site, if the landlord wants themselves or their immediate family to live on the rental site, or if the mobile home site will be significantly renovated.

Notice of Termination requirements

A written notice to end a lease must include:

• The name of the tenant and landlord
• The address of the rental unit
• The date the lease agreement will end
• The signature of the person ending the lease

Lease termination reasons

In New Brunswick, a tenant can terminate a lease by providing a written Notice of Termination to the landlord. The amount of notice required depends on the type of lease and its length. Here are some common reasons for lease termination:

• End of a Fixed-Term Lease: A fixed-term lease automatically ends at the conclusion of the agreed-upon period. No additional notice is required from either party.
• Periodic Lease Termination: For periodic leases, the amount of notice depends on the frequency of rent payments. For weekly rentals, one week's notice is required. Monthly rentals require a minimum of one month's notice, provided before the end of the current month.
• Long-Term Tenancies: For tenants who have occupied the rental unit for five consecutive years or more, the notice period is more flexible. Tenants only need to provide one month's notice, while landlords are required to give three months' notice. Additionally, landlords must provide a valid reason for ending the lease, such as the unit being used for non-residential purposes, or a family member moving in.
• Mobile Home Site Leases: For mobile home sites, tenants must give two months' notice, while landlords are required to provide six months' notice. Similar to long-term tenancies, landlords must have valid reasons for ending the lease, such as using the site for a different purpose or renovating.
• Subletting or Assignment: If a tenant wishes to end their lease early, they can sublet the unit by finding a sublessee who will pay rent to them, and then to the landlord. Alternatively, they can assign the lease by finding a new renter to take over the remainder of the lease. This option often involves legal fees and the landlord's consent.
• Landlord's Breach of Lease: If the landlord fails to meet their obligations, such as maintaining the unit or addressing repairs, tenants can send a notice of termination, citing the landlord's breach of the lease agreement.
• Extenuating Circumstances: In some cases, extenuating circumstances may provide a valid reason for lease termination. These include health issues, safety risks, domestic violence, or landlord harassment.

Lease termination costs

In New Brunswick, lease termination costs can vary depending on the type of lease, the reason for termination, and the amount of notice given. Here are the key factors to consider:

• Type of Lease: New Brunswick recognizes different types of leases, including fixed-term leases and periodic leases. Fixed-term leases have a set end date and do not automatically renew, while periodic leases automatically renew unless proper notice of termination is given. Periodic leases can be week-to-week, month-to-month, or year-to-year.
• Notice Period: The amount of notice required to terminate a lease depends on the type of lease and the length of the tenancy. For week-to-week leases, at least one week's notice is required. For month-to-month leases, at least one month's notice is needed. For year-to-year leases, three months' notice is typically required. Long-term tenancies (over five years) have different rules, with tenants needing to give one month's notice and landlords providing three months' notice along with a valid reason for ending the lease.
• Early Termination: If you need to end a lease early, there may be additional costs involved. Tenants can discuss an early termination with the landlord and come to a mutual agreement on an end date. Subletting or assigning the lease to a new tenant may also be an option, but it's important to check the lease for any restrictions.
• Security Deposit: In New Brunswick, landlords can require a security deposit of up to one month's rent for most types of leases. If you terminate your lease early or there are damages to the rental unit, the landlord may withhold some or all of the security deposit to cover these costs.
• Legal Fees: In some cases, legal fees may be involved in lease termination. If the matter goes to the Residential Tenancies Tribunal or requires legal representation, there can be associated costs.
• Other Costs: There may be additional costs associated with finding a new place to live, such as moving expenses and any rent differences between the old and new accommodations.

It's important to carefully review your lease agreement, understand your rights and responsibilities as a tenant, and communicate openly with your landlord to minimize potential costs and reach a mutually agreeable solution whenever possible.

Lease termination penalties

Leases are a binding contract between a tenant and a landlord, and breaking a lease is a breach of this contract. However, you may find yourself with a valid reason for needing to break your lease, such as moving to another city. In such a scenario, it is best to:

• Familiarize yourself with your province’s legal requirements to terminate a lease.
• Know whether you have a “Fixed” or “Periodic” term lease. A Fixed Term is a lease with a specified end, while a Periodic Term is a lease that runs month-to-month, week-to-week, or another predetermined time.
• Provide your landlord with as much notice as possible.
• Wherever permissible, offer to help find a replacement tenant.

Each province in Canada has different regulations pertaining to leases or tenant agreements, and how to cancel a lease. Here is some information on lease termination penalties in New Brunswick:

• The tenancy obligation ends at the end of the fixed-term arrangement. No notice is required to terminate a lease if it ends on a specific date.
• For a periodic lease (year-to-year, month-to-month, or week-to-week), the tenancy is automatically renewed for the same term unless proper notice of termination is served.
• If the lease period is on a month-to-month basis, one month’s written notice is required to terminate the arrangement.
• If the lease period is on a year-to-year basis, three months’ written notice prior to the anniversary date is required to terminate the arrangement.
• If the landlord wishes to retain all or a portion of the security deposit, they have seven days to file a claim with the province’s Rentalsman. If no claim is submitted, the Rentalsman returns the money to the tenant.
• If not explicitly prohibited in the lease arrangement, a written request to partially assign the lease to another tenant is permitted.

For additional details, you can refer to New Brunswick’s rental board website, Service New Brunswick Office of the Rentalsman.

Lease termination rights

In New Brunswick, a lease is a contract between a landlord and a tenant when renting a residential property. Both parties have rights and responsibilities, and it's important to end a lease correctly. Here are the key points regarding lease termination rights:

• Notice Period: The amount of notice required to end a lease depends on the type of lease. For weekly rentals, one week's notice is needed. Monthly rentals require one month's notice, and yearly rentals need three months' notice. Long-term tenancies (over five years) have different rules: tenants must give one month's notice, while landlords must provide three months' notice and a valid reason for ending the lease.
• Written Notice: Both tenants and landlords must provide written notice to end a lease. The written notice should include the name of the tenant and landlord, the address of the rental unit, the date the lease agreement will end, and the signature of the person ending the lease.
• Lease Termination by Tenant: Tenants can end a lease by providing proper written notice. If a tenant needs to terminate a lease early, they may discuss this with the landlord and come to a mutual agreement for an end date. Alternatively, if the lease allows for it, the tenant may assign a new tenant to take over the lease.
• Lease Termination by Landlord: Landlords can only end a lease for specific reasons, such as wanting to live in the rental unit themselves or their immediate family, significant renovations, or if the tenant is working for the landlord and that job ends.
• Subletting and Assignment: If a tenant wishes to end their lease early but the landlord is not accommodating, subletting or assigning the lease to a new tenant may be an option, provided there is no lease stipulation or provincial regulation prohibiting it. Subletting means the original tenant is still responsible for payment and the lease, while assignment transfers the lease to a new tenant.
• Lease Termination for Extenuating Circumstances: In certain extenuating circumstances, such as an unfit residence, landlord harassment, domestic violence, or health and safety risks, tenants may be able to terminate their lease early. In such cases, it is recommended to handle the situation through the Landlord Tenant Board.
• Security Deposits: To get a security deposit back, tenants must apply using the Application for Return of Security Deposit form. Landlords who wish to make a claim on the security deposit must submit a Security Deposit Claim Form, and a Residential Tenancies Officer will determine the outcome.

Frequently asked questions