Assigning a Lease: Deposit Liability in New Brunswick

Assigning a lease means a tenant finds someone else to take over their remaining tenancy. In New Brunswick, tenants and renters should understand how security deposits are handled during an assignment, what paperwork protects you, and when you remain financially liable. This guide explains common scenarios, simple steps to reduce risk, and when to use provincial dispute processes so tenants can protect their money and rights while arranging a lease transfer.

How lease assignment works in New Brunswick

When you assign a lease, the original tenant (the assignor), the incoming tenant (the assignee) and the landlord must agree on who holds liability for rent and damages. A landlord may need to consent to the assignment in writing; without clear written agreement, the original tenant can remain legally responsible for the tenancy and the security deposit. Always ask the landlord to confirm in writing whether the deposit will be returned, transferred to the new tenant, or held against future claims ^[1].

Deposit liability when assigning a lease

Typical outcomes you might see:

• The landlord refunds the deposit to you and accepts a new deposit from the incoming tenant.
• The landlord transfers the existing deposit to the incoming tenant and issues a written receipt showing the transfer.
• If no transfer or receipt is issued, the original tenant may remain liable for deductions; disputes can be brought to the provincial tenancy tribunal.

Common timelines and notice requirements

• Give written notice to the landlord as soon as you plan to assign the lease and request written agreement on deposit handling.
• Ask for a written receipt or release at the time of any refund or transfer; note the date in case you need it later.

Steps to protect your deposit when assigning a lease

• Get the landlords consent in writing and ask for a statement that releases you from future liability.
• Document the units condition with dated photos and a signed move-out condition report agreed by the landlord and incoming tenant.
• Obtain a written receipt showing whether the deposit was refunded or transferred to the new tenant.
• If the landlord refuses to confirm a transfer, ask how to file a formal application with the Residential Tenancies Tribunal and keep a record of that communication ^[2].

If you need to find a replacement tenant, consider advertising the vacancy and screening applicants carefully; for broader exposure, Find rental homes across Canada on Houseme to compare how listings present deposit expectations to prospective renters.

FAQ

Can a landlord keep my deposit when I assign my lease?

A landlord can only keep deposit amounts for legitimate, documented reasons such as unpaid rent or damage beyond normal wear and tear; you should receive a written itemized statement of deductions.

Do I automatically stop being liable once I find someone to take over my lease?

No. Liability usually continues until the landlord formally accepts the new tenant and issues a written release or transfers the deposit; get that in writing.

What if the landlord wont cooperate with a deposit transfer?

You can apply to the Residential Tenancies Tribunal for a decision and bring all documents, receipts and photos as evidence ^[2].

How-To

1. Contact the landlord in writing to request consent to assign and ask how they will handle the deposit.
2. Arrange a condition inspection and collect dated photos showing the units state before the assignment.
3. Obtain a written receipt that either refunds your deposit or documents a transfer to the incoming tenant.
4. If the landlord does not cooperate, complete and submit the official application form to the Residential Tenancies Tribunal to resolve deposit disputes ^[3].

Key Takeaways

• Always get written confirmation about deposit refunds or transfers before the assignment is finalised.
• Document the units condition and keep receipts to support your claim if a dispute arises.
• If the landlord wont cooperate, use the provincial tribunal process and include all evidence.

Help and Support / Resources

• Residential Tenancies information - Government of New Brunswick
• Residential Tenancies Act - Government of New Brunswick
• Residential Tenancies Tribunal - Government of New Brunswick

1. [1] Residential Tenancies Act - Government of New Brunswick
2. [2] Residential Tenancies Tribunal - Government of New Brunswick
3. [3] Residential Tenancies information and application forms - Government of New Brunswick