- After a tenancy ends, the landlord has 15 days from the later of the end date or receiving your forwarding address in writing to return the deposit or apply to claim against it.
- A landlord can end a tenancy only on grounds the Residential Tenancy Act allows and must serve the correct form.
- Signing away your tenancy under pressure can mean giving up protections such as notice, compensation and the right to dispute a notice.
Sometimes a landlord and tenant both agree the tenancy has run its course. The tenant wants to move, or the landlord has other plans, and a clean, agreed exit looks easier than a formal notice.
That can work well, but only if both sides understand what they are signing. This article explains what a mutual agreement involves, what happens to the deposit, and what to watch for if you feel pushed to sign.
This article covers the law of British Columbia.
What a mutual agreement is
A mutual agreement to end a tenancy is a deal between the landlord and the tenant that the tenancy will finish on a stated date. Because it comes from both sides, it is different from a notice a landlord serves or a notice a tenant gives.
The details of the required form and signing steps are worth confirming with the Residential Tenancy Branch or a lawyer before you rely on any document. As a general rule, a good agreement states the address, the names of everyone on the tenancy, the exact end date and the signatures and dates of every party.
- The rental address and the names of all tenants and landlords.
- A specific move-out date.
- Any agreed payment or compensation, in numbers.
- How the deposit will be handled.
- Signatures and dates from everyone on the tenancy.
What happens to the security deposit
How the deposit rules apply to an agreed ending depends on the facts, so it is worth confirming with a lawyer. Within 15 days after the later of the tenancy's end date or the date the landlord receives the tenant's forwarding address in writing, the landlord must repay the deposit with interest or apply for dispute resolution to claim against it. A landlord who fails to do so may not claim against the deposit and must pay double the deposit.
Move-out inspection duties still matter. A tenant who does not take part in the inspection when the landlord asks may lose the right to have the deposit returned, and a landlord who skips inspection duties can lose the right to claim against it. A landlord cannot charge a fee for returning the deposit.
If a tenant does not give a forwarding address within one year after the tenancy ends, the landlord may keep the deposit and the tenant's right to it ends. The Province lists deposit interest at 0% for 2026.
When pressure to sign is a problem
A landlord can end a tenancy only on grounds the Residential Tenancy Act allows, and must serve the correct RTB form. A landlord cannot end a tenancy just because they want to sell. If you are asked to sign an agreement instead of receiving a formal notice, it is worth understanding what you would be giving up before you sign.
Compare what you would get under a formal notice. For landlord's-use or purchaser's-use, compensation is one month's rent. If the stated purpose is not carried out for the required period, the tenant may be owed a further 12 months' rent, though the director may excuse this. A tenant who receives a notice also has a set period to dispute it, such as 21 days for a three-month notice.
Whether an agreement signed under pressure can later be challenged depends on the facts. Do not sign on the spot. Ask for time, ask for the terms in writing and get advice if you feel rushed.
Warning signs before you sign
- The landlord says you must sign today or lose out.
- The agreement has no end date, or the date is blank.
- You are told a notice is coming anyway, so signing is easier.
- Promised payments are verbal and not in the document.
- You are asked to sign before the landlord explains the reason for ending the tenancy.
- The landlord offers to sell the building and says you must leave, which does not end a tenancy on its own.
What to do next
If you are the tenant, take a copy of anything you sign and write down any promises made. If you are the landlord, put every term in the document, including the deposit and any payment. Both sides should keep their messages.
If a notice is served at the same time, remember the dispute deadlines: 5 days for a 10-day notice, 10 days for a 1-month notice, 15 days for a 2-month notice, 21 days for a 3-month notice and 30 days for a 4-month notice. A lawyer can review your agreement before you sign.
Frequently asked questions
Do both the landlord and tenant have to sign?
Who must sign and in what form depends on your situation, so it is worth confirming with the Residential Tenancy Branch or a lawyer before you rely on any document. As a practical step, a clear agreement names everyone on the tenancy and carries each person's signature and date.
Do I lose my deposit if I sign a mutual agreement?
No, not automatically. The landlord must still return the deposit with interest or apply to claim against it within 15 days after the later of the end date or receiving your forwarding address in writing.
Can my landlord make me sign to avoid giving notice?
Whether a signature given under pressure holds up depends on the facts, so it is worth getting advice. If you feel pressured, ask for time and get advice before signing. A formal notice would have to rely on grounds the Act allows and use the correct form.
Is a landlord's text message enough to end my tenancy?
An eviction notice must be served in person, by mail, by email or by attaching it to the door, and text messages are not allowed. Whether a text can show an agreement depends on the facts, so keep it and ask a lawyer.
Sources
- Residential Tenancy Act, ss. 46–49.2 — bclaws.gov.bc.ca
- gov.bc.ca – Receiving an eviction notice — www2.gov.bc.ca
- gov.bc.ca – Sell a rental property — www2.gov.bc.ca
- gov.bc.ca – Disputing an eviction — www2.gov.bc.ca
- gov.bc.ca – Tenancy deposits and fees — www2.gov.bc.ca
- gov.bc.ca – Moving out of rental units — www2.gov.bc.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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