Can a Landlord Cancel Your Lease Before Move-In in PEI?

Signing a lease in Prince Edward Island (PEI) is an exciting step, but what happens if your landlord tries to cancel the agreement before you even move in? Many tenants worry about their rights when a landlord wants to back out after a lease has been signed but before possession starts. This guide explains your rights under PEI law, what to do if your lease is cancelled, and the resources available to help you.

Understanding Lease Agreements in Prince Edward Island

In PEI, most rental agreements are covered by the Residential Property Act[1]. Once both the tenant and landlord sign a lease, it usually becomes a legally binding contract, even if you have not yet moved in. If either party wants to cancel, special rules apply.

When Can a Landlord Cancel a Lease Before Move-In?

Generally, a landlord cannot simply decide to cancel the lease after you have signed unless there is a mutual agreement to end the contract or a legal reason exists—such as misrepresentation or fraud. This provides stability for tenants, but a few exceptions apply:

  • Mutual Agreement: Both you and the landlord agree in writing to cancel the lease.
  • Non-fulfillment of Lease Conditions: If the lease had specific conditions (like providing a damage deposit) that were not met, cancellation could be possible.
  • Serious Issues: If misrepresentation, fraud, or another legal defect is proven, the lease may be voided.

If a landlord claims non-payment of a deposit as a reason for cancelling, make sure to review the terms of your agreement. For more about deposits and your rights, see Understanding Rental Deposits: What Tenants Need to Know.

What Rental Board Handles Lease Disputes in PEI?

All rental disputes in PEI, including issues with lease cancellations, are handled by the Island Regulatory and Appeals Commission (IRAC) – Residential Rental Office.

Ad

Relevant Official PEI Forms

  • Form 6: Application to Director – Use this form if you wish to resolve a dispute about a lease, including if your landlord tries to cancel before move-in.
    Download Form 6 here. Submit this with details of your lease and situation to the Residential Rental Office.

Example: If your landlord cancels your lease before move-in without your agreement and you disagree, complete Form 6 and submit it to the Director as soon as possible for a fair review.

Your Rights and Responsibilities If a Lease Is Cancelled

If your landlord cancels without legal grounds, you may be entitled to compensation (such as for moving costs or trouble finding another place). Document all communication and keep all receipts related to search for new housing. You are also responsible for fulfilling your own obligations under the lease unless cancellation is mutually agreed upon or legally justified.

If your lease is cancelled after you have already paid a security deposit or first month’s rent, you have the right to request a full refund. If the landlord refuses, file a complaint with IRAC promptly.

For a deeper understanding of both landlord and tenant duties after signing, visit What Tenants Need to Know After Signing the Rental Agreement.

Moving Forward: What to Do Next

  • Request clear written reasons from your landlord for any attempt to cancel the lease.
  • Do not give up your right to the rental unit unless you receive a legal notice or the Residential Rental Office resolves the dispute.
  • Submit Form 6 promptly if you disagree with the cancellation.
  • Keep all agreements, emails, and notes in writing.

If you must quickly find a new home, Find rental homes across Canada on Houseme quickly and easily to avoid disruption.

For a complete summary of PEI tenant protections and rules, see Tenant Rights and Landlord Rights in Prince Edward Island.

Frequently Asked Questions About Lease Cancellations in PEI

  1. Can my landlord cancel my lease before I move in for any reason?
    Usually, no. Unless there is a mutual written agreement, a legal justification, or unmet conditions, your landlord cannot cancel the lease without going through the proper process.
  2. What if I want to back out of the lease before moving in?
    If you need to cancel, communicate with your landlord quickly. Unless you mutually agree, you may face penalties or loss of deposit. You can also apply to IRAC to resolve disputes.
  3. How do I file a dispute about a cancelled lease?
    Fill out Form 6: Application to Director and submit all relevant information to the Island Regulatory and Appeals Commission’s Rental Office.
  4. Am I entitled to my deposit or any compensation if my lease is cancelled?
    Yes, you are generally entitled to a refund of any deposit or advanced rent if the landlord cancels the lease without legal cause. If this is refused, apply for dispute resolution.
  5. Where can I get more information about my rights as a PEI tenant?
    See the official government resources listed below or contact IRAC directly for advice.

Conclusion: Key Takeaways

  • Landlords cannot unilaterally cancel a signed lease before move-in unless specific legal grounds exist.
  • If a dispute occurs, tenants should act quickly by gathering documentation and, if needed, applying to the Residential Rental Office (IRAC).
  • Always review your lease, communicate in writing, and use official PEI forms to protect your rights.

Remember, understanding the process ahead of time can help you safeguard your new home and your legal rights as a tenant.

Need Help? Resources for Tenants


  1. Residential Property Act (PEI) – sets out landlord and tenant rights in PEI
  2. Form 6: Application to Director (IRAC) – for dispute resolution regarding lease agreements
  3. Island Regulatory and Appeals Commission (Residential Rental Office) – handles tenancy issues in PEI
Bob Jones
Bob Jones

Editor & Researcher, Tenant Rights Canada

Bob writes and reviews tenant law content for various regions. They’re passionate about housing justice and simplifying legal protections for tenants everywhere.