What should I know before signing a mutual agreement to end my tenancy?

A mutual agreement to end tenancy is a written agreement between you and your landlord where you both agree to end your tenancy on a specific date. Landlords and tenants can use mutual agreements any time during a tenancy. Sometimes this can work out well for both sides. But it can also mean that you are giving up rights to compensation or notice that you would otherwise be entitled to. It's important to understand what you're giving up before you sign anything. 

There’s a power balance in most landlord and tenant relationships. Some landlords might try to push a tenant to sign a mutual agreement if they don’t have a legal reason to evict you. If you're feeling rushed or pressured to sign immediately, that's a red flag. Make sure you understand what you're being asked to agree to and that the deal is fair for your situation. Signing a mutual agreement to end tenancy is always your choice. 

You don't have to sign the agreement

You are never legally obligated to sign a mutual agreement, even if your landlord is pushing you to do it. If you’ve been given an eviction notice, and you don’t want to move out voluntarily, you can dispute the eviction notice. If you’re considering signing the agreement, you can negotiate for better terms, take time to get advice, or simply say no. 

Some landlords prefer mutual agreements because they avoid the time and hassle of going through dispute resolution. If that's valuable to them, you have negotiating power. Don't let a landlord pressure you into signing quickly just because it's more convenient for them.

What you give up by signing

When you sign a mutual agreement, you lose important rights. You won't get the compensation you might be entitled to if your landlord had given you a proper eviction notice instead. For example, with a landlord's use eviction or a renoviction, you could get one month's rent in compensation — or even an additional 12 months' rent in compensation if the landlord doesn't follow through. Once you sign a mutual agreement, you give up these rights. You also can't dispute the eviction later or challenge whether your landlord had a legal reason to evict you.

When it might make sense

A mutual agreement can be a good option if you're ready to move anyway, or if you negotiate compensation that truly covers your costs and the difference in rent over a longer horizon. For example, if you've been given an eviction notice, and you think your chance of successfully disputing it are low, there's an option to try to negotiate a cash amount for you to leave that is acceptable to you. The key is that the agreement should be in your interests, not just the landlord's. 

Before you sign

Before you sign, consider these factors:

• What are the current rent prices in your area or other areas you’d be willing to move to? 

• Will the compensation cover moving costs? 

• Check housing availability — how hard will it be to find a new place? 

• How will it impact your quality of life? Will the kids have to move schools? Will you have to commute a longer distance to work? Will you lose critical community supports, social ties, or services? 

Any agreement should be written down and signed by both you and your landlord. The government has a standard form (RTB-8). Even if you sign a different form of the agreement, it will be legally binding. Make sure the agreement clearly states when you'll move out, how much you'll be paid and when, and any other terms you've negotiated.

Read the entire agreement carefully and ask questions about anything confusing. Don't sign if you feel uncertain. It's okay to say "I need time to think about this" or "I want legal advice first."

If you are feeling pressured to sign, or don’t understand the terms of the agreement, reach out for help. You can contact the Tenant Resource & Advisory Centre (1-800-665-1185), a legal clinic, or a lawyer.  Here are some free and low cost options for legal help.