Nova Scotia Tenant Rights if Rental Property is Seized

When a rental property in Nova Scotia is seized—whether by creditors, due to tax issues, or through foreclosure—tenants may feel uncertain about their housing situation. Fortunately, provincial laws protect tenant rights during these complex events. This guide explains your legal rights, what to expect, and how to protect yourself if your landlord’s rental property is seized.

Rental Property Seizure: What Does It Mean?

Property seizure—sometimes called foreclosure or repossession—happens when a government or lender takes legal possession of a property due to unpaid taxes, debts, or mortgages. As a tenant, you may not have advance notice until official documents are posted or delivered.

• Seizure is a legal action and not the same as a personal eviction process against you.
• You remain a legal tenant, with rights and obligations under Nova Scotia law.

For a detailed overview of your rights in various scenarios, visit Tenant Rights and Landlord Rights in Nova Scotia.

What Happens to Your Lease if the Property Is Seized?

In Nova Scotia, the Residential Tenancies Act protects tenants when ownership of the property changes. The new owner—whether a bank, government, or another landlord—becomes your new landlord and is bound by your existing lease.

• Your current lease continues under the new owner or authority.
• The new landlord must honour your tenancy agreement, including the amount of rent and other terms, unless the Nova Scotia Residential Tenancy Program orders otherwise.

Common Tenant Concerns During Seizure

• Will my lease end automatically? No.
• Can the new owner increase my rent, change the locks, or remove you without proper notice? No, not without following proper legal process.
• Are your deposit and prepaid rent still protected? Yes, but extra steps may be needed to recover them at move-out (see below).

Your Rights and What to Do

• Continue to pay rent as usual until formally notified by the Residential Tenancy Program or new owner.
• Document all notices, communications, and condition of your unit. Take photos if possible.
• Check who is officially recognized as your new landlord. Request written proof if there’s any doubt.

Learn more about your obligations and the landlord’s responsibilities in similar situations by reading Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

Security Deposits and Prepaid Rent

In Nova Scotia, security deposits and any prepaid rent are protected under law, but seizure scenarios can make recovery at move-out more complex. You should:

• Request documentation from both prior and new owners showing who holds your deposit.
• At move-out, provide forwarding information and request your deposit in writing.

Review what you should expect regarding deposits by visiting Understanding Rental Deposits: What Tenants Need to Know.

If your deposit is not returned, you may apply to the Residential Tenancy Program for assistance (see Forms & Actions below).

Forms and Action Steps for Tenants

When issues arise—such as a demand to move out, repair needs, or difficulty recovering your deposit—tenants should take action promptly using official government forms. These are administered by the Nova Scotia Residential Tenancy Program (the provincial board handling rental disputes).

Key Forms for Tenants

• Form K: Application to the Director (Apply to the Director - Form K).
  • When to use: If you have a dispute with a landlord or new owner about eviction, deposit return, or any term of your lease after property seizure.
  • Example: If you are told to leave after a foreclosure but have a valid lease, submit Form K to request formal dispute resolution.
    Official Form K application
• Form J: Application for Return of Security Deposit (Apply for Return of Security Deposit - Form J).
  • When to use: If you move out and your deposit is not returned by whoever holds it (former or new landlord).
  • Example: At move-out after a property seizure, if neither owner returns your deposit, submit Form J to the Residential Tenancy Program.
    Official Form J application

Staying Informed and Acting Quickly

Resolving issues after a property seizure can take time. Prompt action and ongoing documentation are your best protections. You may also want to Find rental homes across Canada on Houseme if a move becomes necessary, or to compare your options in case of ongoing uncertainty.

Frequently Asked Questions (FAQ)

1. Do I have to move out right away if the property is seized?
   No. Your lease remains active after a property seizure in Nova Scotia, and you cannot be forced out without a valid notice approved by the Residential Tenancy Program.
2. Can the new owner increase my rent immediately after seizure?
   No. Rent increases after a change in ownership must follow legal notice periods and rules under the Residential Tenancies Act.
3. What happens to my security deposit if the landlord changes?
   The new landlord should take responsibility for your deposit, but if it's not returned at move-out, you can apply for its return using Form J.
4. Who can I contact if I receive an eviction notice after seizure?
   You should contact the Nova Scotia Residential Tenancy Program and may submit Form K if needed. Their office can explain your rights and next steps.
5. Will the previous landlord still be responsible for repairs?
   Once ownership changes, the new owner is responsible for ongoing repairs and maintenance.

Key Takeaways for Nova Scotia Tenants

• Your lease is still in effect after rental property seizure unless formally ended through the proper process.
• Security deposits and rental terms are protected by law—use official forms if you need to enforce your rights.
• When in doubt, contact the Residential Tenancy Program for guidance and take action quickly.

Need Help? Resources for Tenants

• Nova Scotia Residential Tenancy Program – Official board for all tenancy issues: forms, complaints, and tenant protections.
• Toll-Free Information Line: 1-800-670-4357 (Service Nova Scotia)
• Legal Information Society of Nova Scotia: legalinfo.org for general tenant information and referrals.
• Review your full rights and obligations at Tenant Rights and Landlord Rights in Nova Scotia.

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1. Residential Tenancies Act, Nova Scotia: Read the full Act
2. Nova Scotia Residential Tenancy Program: Official information and forms
3. Service Nova Scotia: Provincial services and contacts

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