New Brunswick Subletting, Assignment and Early Lease Termination — Landlord Rules

When a Tenant Wants Out Before the Lease Ends

A tenant locked into a fixed-term lease who wants to leave early has limited options under New Brunswick's Residential Tenancies Act. They can ask to sublet, request a lease assignment, or try to negotiate an early termination. Each of these involves the landlord, and each carries specific rules that affect your position.

Lease Assignment and Form 7

Where the lease requires the landlord's consent to an assignment, Section 13(4) requires the tenant to use Form 7 — the Request for Consent to Assign. The landlord must reply in writing within 7 days; if not, consent is deemed given. When you receive a Form 7, you have three options:

1. Consent to the assignment. The new tenant steps into the existing lease on its current terms. The original tenant is released from further obligations.

2. Refuse the assignment on reasonable grounds. You cannot arbitrarily or unreasonably withhold consent. Reasonable grounds might include the proposed assignee's inability to meet the financial requirements or a history that suggests they won't comply with the lease terms. But "I just don't want to" is not a valid refusal.

3. Terminate the lease instead. Under Section 13(4)(d), the landlord may serve a Notice to Quit within 7 days instead of consenting, and the termination takes effect on the date the proposed assignment was to begin. This option does not apply to mobile home site tenancies, an assignment for only part of the remaining term, or an assignment for mortgage purposes.

Option 3 gives you an exit from a problematic tenancy without needing to establish a fault-based ground. If a tenant who has been difficult to manage requests an assignment, you can decline and end the lease on the proposed assignment date. This is a lawful, statutory pathway — not a workaround.

Subletting

Subletting is distinct from assignment. In a sublet, the original tenant remains on the lease and retains the right to return. A subtenant occupies the unit temporarily, typically while the tenant is away.

The Residential Tenancies Act does not set a separate consent process for subletting. If a lease contains a covenant requiring consent to sublet, Section 11 of the Landlord and Tenant Act says that consent cannot be unreasonably withheld unless the lease expressly provides otherwise. If you do consent, the original tenant remains liable for rent and for the subtenant's compliance with the lease terms and the Act.

From a practical standpoint: subletting doesn't end the tenancy. The original tenant is still your tenant. If the subtenant causes damage or fails to pay, your recourse is against the original tenant.

Automatic Lease Renewal and the Periodic Conversion

A fixed-term lease in New Brunswick ends automatically on its agreed end date and does not automatically renew into another fixed term. Under Section 23, when a fixed-term lease ends, the outcome depends on what happens next:

• If the tenant remains and the landlord accepts rent or compensation for use and occupation (other than for past use), a new tenancy is created. Its term is determined by the method of rental payment — for example, monthly rent creates a month-to-month tenancy.
• If the landlord does not accept rent or compensation after the term ends, the tenant's continued occupation does not by itself create a new tenancy; the landlord may apply for an eviction order.

Periodic tenancies have different notice requirements from fixed-term tenancies. Under Section 24(1), a landlord's notice is at least 1 week for a week-to-week tenancy, 1 month for a month-to-month tenancy, or 3 months for a year-to-year tenancy; it takes effect on the last day of the applicable period. A fixed-term tenancy ends on its agreed end date.

If the tenant remains after the fixed term expires, the landlord may apply for an eviction order under Section 21.

The 5-Year Threshold

Once the same tenant has occupied the premises for five consecutive years, Sections 24.2 through 24.6 apply. The tenancy is deemed month-to-month by operation of law, regardless of any fixed-term contract. Termination rights become more restricted, and the notice periods for no-fault grounds increase. This applies to any tenancy that has run continuously for five years, including one that started as a fixed-term lease and converted to periodic.

Early Termination by Mutual Agreement

Nothing in the Act prevents a landlord and tenant from agreeing to end a lease early by mutual consent. If both parties agree in writing on a termination date, the tenancy ends on that date. This avoids the formal notice process entirely.

Get the agreement in writing. A verbal agreement to vacate early is difficult to enforce if the tenant changes their mind.

Domestic Violence Early Termination

Under Section 24.01, a tenant who believes their safety or a dependent child's safety is at risk because of domestic violence, intimate partner violence, sexual violence, or criminal harassment can terminate a lease early by serving notice and a document prescribed by regulation. The tenant is released from ongoing rent liability without penalty. This right exists regardless of the lease term or any break-lease clause.

For fixed-term and year-to-year tenancies, the notice must be served at least one month before the end of a month to be effective on its last day. Other periodic tenancies follow the notice periods in Section 24(1).

Planning the End of a Tenancy

Whether you're dealing with a Form 7 assignment request, a lease approaching expiry, or a tenant who wants to negotiate an early exit, the rules interlock with the broader termination framework — grounds, notice periods, prescribed forms, and service requirements.

The Ending a Tenancy in New Brunswick guide covers all termination pathways, including the Form 7 assignment option, fixed-term expiry and periodic conversion, and the five-year threshold, with the notice periods and date-alignment rules for each.

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