How to End a Tenancy in New Brunswick When Selling a Rental Property

If you are selling a tenanted rental property in New Brunswick and the buyer wants vacant possession, the sale itself does not end the lease. The buyer assumes the landlord's obligations after the transfer is notified to the tenant and Residential Tenancies Officer. A seller can serve a termination notice before closing only if a statutory ground applies to the seller; a buyer who intends to occupy must serve as landlord after the transfer notice. Getting this wrong delays the closing, reduces your sale price, or leaves the buyer with a tenant they cannot remove for months.

A Sale Does Not End a Tenancy in New Brunswick

This is the fact that catches most selling landlords off guard. Under the Residential Tenancies Act, selling a property does not terminate an existing tenancy. The lease — whether fixed-term or month-to-month — survives the transfer of title. After notification of the transfer, the new owner assumes the landlord's obligations, including the existing rent amount and the remaining term of any fixed-term agreement. The security deposit remains in the provincial fund administered by the Tenant and Landlord Relations Office; it is not handed to the buyer at closing.

If the buyer wants to move in personally, someone needs to serve a formal termination notice citing the correct statutory ground and using the prescribed form. The tenant cannot be told to leave simply because the property has been sold.

Your Two Paths to Vacant Possession

Path 1: You (the Seller) Serve Notice Before Closing If a Ground Applies

You can serve a notice before the sale completes only if a statutory ground applies to you as the landlord. For personal occupation, the Act requires a good-faith intention that the landlord or a listed family member will occupy the premises. The buyer's planned occupation is not the seller's ground.

The notice period depends on the tenancy type and how long the tenant has lived there:

• Month-to-month, under five years: at least one full month of notice
• Fixed-term: it automatically ends on the agreed end date; no notice is required to end it then
• Long-term tenant (five or more consecutive years): at least three months' notice; the tenancy is deemed month-to-month

The effective date must fall on the last day of a rental period. Miscounting this alignment is one of the most common errors, and it can add months to your timeline.

Path 2: The Buyer Serves Notice After Title Transfer

If you sell with the tenant in place, the buyer assumes the landlord's obligations after the transfer is notified and can then serve a personal-occupation notice if they or a listed family member intend in good faith to occupy. This is common when the sale timeline does not allow a valid notice period to expire before closing.

The buyer must become the landlord before serving a notice based on their own intended occupation. The seller is responsible for completing Form 8 — the Notice of Transfer — and serving it on both the tenant and the Residential Tenancies Tribunal within seven days of the transfer date.

Form 8: The Obligation Everyone Forgets

Within seven days of title transferring, the seller must complete Form 8 (Notice of Transfer) and serve it on the tenant and the Residential Tenancies Tribunal. This is a separate obligation from any termination notice. Form 8 tells the tenant who their new landlord is — it does not end the tenancy.

Failing to serve Form 8 within seven days is a breach of the Act. It does not invalidate the sale or the lease, but it creates an administrative non-compliance that can complicate any subsequent termination notice.

The Timeline Problem for Sellers

Here is the practical difficulty. You accept an offer in January from a buyer who wants to move in. Closing is scheduled for April. Your tenant pays on the first of the month and has lived there for two years.

A personal-occupation notice for a month-to-month tenant with less than five years of occupancy requires at least one full month of notice. If you serve on January 15 for a tenancy whose rental month ends on the last day of the month, the earliest effective date is February 28. For a long-term tenant of five or more consecutive years, the landlord must give at least three months' notice.

You have three options:

1. Delay the closing until the notice period expires — the buyer may not agree
2. Sell with the tenant in place and let the buyer serve their own notice after closing — you may get a lower price
3. Negotiate a mutual termination agreement with the tenant — voluntary, and the tenant is under no obligation to agree

There is no shortcut. The Act does not allow you to shorten the notice period because you have a buyer waiting.

What If the Tenant Will Not Leave?

If the tenant remains past the notice deadline, the next step is a Landlord Application for Assistance to the Residential Tenancies Tribunal. The application fee is $75. The Officer will investigate and may issue a Form 9 eviction order if the requirements are met.

If the Officer sets the notice aside, you must serve a new notice and wait through the applicable notice period. For a notice under section 24.12, the Officer must confirm it and may vary the effective date when the landlord establishes a permitted ground.

The Ending a Tenancy in New Brunswick guide covers the complete process from identifying your ground through the Form 9 application, with worked day-counting examples that show exactly how the alignment rules affect your timeline when selling.

Who This Is For

• Landlords in New Brunswick planning to sell a tenanted rental property
• Sellers whose purchase agreement requires vacant possession by a specific date
• Buyers purchasing a tenanted property who need to understand their notice options and the seller's Form 8 obligation
• Real estate agents advising clients on realistic timelines for vacant possession

Who This Is NOT For

• Landlords selling to an investor who will keep the tenant in place — no notice is needed
• Commercial property sales — the Residential Tenancies Act covers residential tenancies only
• Anyone seeking to pressure a tenant into leaving before the statutory notice period expires

Frequently Asked Questions

Can I include a clause in the sale contract that the tenant must leave by closing?

You can agree to deliver vacant possession, but the clause binds you and the buyer — it does not bind the tenant. The tenant's rights come from the Residential Tenancies Act, not your sale contract. If the notice period has not expired by closing and the tenant has not agreed to leave early, you cannot force them out regardless of what the contract says.

Does the buyer inherit the security deposit?

The security deposit remains in the provincial fund administered by the Tenant and Landlord Relations Office; it is not handed to the buyer at closing. The new landlord may make a claim against it for amounts allowed under the Act, and the tenant applies to the office for its return after moving out.

What if the tenant has lived there for more than five years?

For a long-term tenancy of five or more consecutive years, the tenancy is deemed month-to-month and the landlord must give at least three months' notice. The statutory grounds for landlord termination apply regardless of how long the tenant has lived there. If the landlord gives notice based on occupation or non-residential use, the landlord must follow through on that stated reason.

Can I offer the tenant money to leave early?

Yes. A cash-for-keys arrangement is voluntary and legal. The tenant is under no obligation to accept. If they do, get the agreement in writing with a specific move-out date and ensure the tenant signs a voluntary termination. Do not withhold essential services or take any step that could be characterised as a self-help eviction under sections 3.1 and 18 of the Act.

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