New Brunswick Demolition and Change of Use Notice — How Landlords End a Tenancy for Conversion

Converting or Demolishing a Residential Rental

If you plan to demolish a residential rental property or convert it to non-residential use — a commercial space, an office, a retail unit — New Brunswick's Residential Tenancies Act provides a specific termination ground under Section 24.12(1)(b). It comes with notice requirements and post-termination restrictions that can cost you money if you don't follow through.

The Statutory Ground

Section 24.12(1)(b) allows a landlord to serve notice when the premises will be used other than as residential premises for at least three consecutive months. This is a no-fault ground — the tenant hasn't done anything wrong, and the termination doesn't depend on a breach or nonpayment.

The notice period depends on the tenancy type under Section 24(1):

• Week-to-week tenancy: at least 1 week's notice, effective on the last day of a rental week
• Month-to-month tenancy: at least 1 month's notice, effective on the last day of a rental month
• Year-to-year tenancy: at least 3 months' notice, effective on the last day of the tenancy year

For a long-term tenancy occupied by the same tenant for at least five consecutive years, Section 24.6 requires the landlord to give at least 3 months' notice before the end of a month. A fixed-term tenancy ends on the agreed end date; the standard lease says no landlord notice is necessary for that expiry.

The notice must be in writing and must state the statutory ground. A vague reference to "plans for the property" is not sufficient.

The Required Non-Residential Use

For the non-residential-use ground, the Act requires the premises to be used for a non-residential purpose for at least three consecutive months. If the tenant applies within 15 days, the Residential Tenancies Officer reviews the notice and asks the landlord to establish the stated reason.

Evidence that supports the stated use may include municipal demolition permits, building permits for conversion, architectural plans, contracts with demolition or construction firms, and zoning approvals for the new use. The more concrete your documentation, the harder it is for a tenant to successfully challenge the notice.

The Two-Month Follow-Through Rule

Under Section 24.12(8), after a termination under paragraph (1)(a) or (b), the landlord must within two months occupy, lease or use the premises in a manner consistent with the reason stated in the notice. Re-listing the unit for residential rental would not be consistent with a non-residential-use reason.

If you fail to follow through, the displaced tenant has the right to apply to a Residential Tenancies Officer within two years of the termination date for a compensation order. The RTO can order compensation for losses caused by the termination.

This restriction is the Act's primary guard against bad-faith no-fault terminations. It applies to personal-occupation and non-residential-use grounds.

How This Differs from Renovation Terminations

Demolition and change of use under Section 24.12(1)(b) are distinct from major renovations under Section 24.13 and Regulation 17.3. The renovation pathway requires prior written approval from a Residential Tenancies Officer before any notice is served — a five-part test covering permits, good faith, necessity of vacant possession, building sustainability, and reasonableness.

Demolition and conversion do not require prior RTO approval. You serve the notice directly. If the tenant disputes a non-residential-use notice, the RTO reviews whether the statutory ground is established; the two-month follow-through obligation also applies.

Tenant Response

A tenant who receives a demolition or conversion notice has 15 days to apply to a Residential Tenancies Officer for a review. If the tenant does not file within that window, they are deemed to have accepted the termination under the Act.

If the tenant does file, the RTO reviews the notice and asks you to establish the reason for termination. The Officer must set aside the notice if you cannot establish a statutory ground.

Practical Considerations

Demolition and conversion notices are uncommon compared to personal-use or nonpayment terminations, but they carry higher financial exposure because of the two-month follow-through obligation. A landlord who changes plans after the tenant vacates may face a compensation order for losses caused by the termination.

For the full notice preparation process, service rules, date alignment, and Tribunal procedure, the Ending a Tenancy in New Brunswick guide covers all no-fault termination grounds with the documentation requirements for each.

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