New Brunswick Commercial Evictions: Forfeiture and Re-entry

The eviction process for commercial tenants in New Brunswick relies on the Landlord and Tenant Act (effective 31 December 1974) and the specific default clauses embedded in the commercial lease. Unlike residential evictions—which follow rigid statutory notices enforced by the Tenant and Landlord Relations Office (TLRO)—commercial evictions offer landlords faster and more robust remedies, typically handled through the Court of King's Bench.

Non-Payment of Rent: Right of Re-entry

In commercial tenancies, if a tenant fails to pay rent, the primary remedy available to a landlord is forfeiture of the lease, usually exercised through the right of re-entry.

If a commercial lease properly outlines default terms, a landlord is rarely required to wait 15 or 30 days to act on unpaid rent.

Exercising Re-entry

If the tenant defaults on rent, the lease often dictates that the landlord can immediately, or after a very short grace period (e.g., 3 to 5 days), peaceably re-enter the premises, change the locks, and terminate the lease.

Legal Caveats:

• Relief from Forfeiture: The Landlord and Tenant Act allows a locked-out tenant to petition the court for "relief from forfeiture." If the tenant pays all back rent and the landlord's legal costs before a final court judgment, the court will typically reinstate the lease and allow the tenant back in.
• Peaceable Entry: Self-help eviction (changing the locks) is risky. It must be done peaceably. If the tenant is present and protests, the landlord cannot use force or intimidation and must rely on a formal court-ordered eviction.

Breach of Other Lease Terms (Non-Monetary Defaults)

When a commercial tenant breaches non-monetary clauses (such as violating use restrictions, failing to maintain commercial insurance, or assigning the lease without permission), the landlord still relies on the lease and the Landlord and Tenant Act.

The Notice Requirements: Before a landlord can terminate the lease or re-enter the property for a non-monetary breach, they are legally required to serve a formal written notice that:

1. Specifies the exact breach of covenant complained of.
2. If the breach is capable of remedy, requires the tenant to remedy the breach.
3. Specifies the timeframe by which the tenant must cure the defect (which must be "reasonable").

If the tenant fails to remedy the situation within the reasonable/stated timeframe, the landlord can proceed with terminating the lease and seeking possession through the courts.

Holding Over

When a commercial lease expires naturally, no notice is generally required; the tenant simply must vacate.

If a tenant willfully refuses to vacate after the term's determination, and the landlord has provided written notice demanding possession, New Brunswick's Landlord and Tenant Act imposes severe penalties. Under Section 56, the tenant may be held liable to pay the landlord double the yearly value of the property for the duration they remain in possession unlawfully. Section 62 outlines the process for commencing summary proceedings for possession and the payment of this double value after a demand for possession has been served.

Distress for Rent (Seizing tenant property)

New Brunswick commercial landlords have a unique common law remedy known as "distress" or "distraining for rent."

If a commercial tenant owes rent, a landlord can legally enter the premises, seize the tenant's goods and equipment, and sell them at auction to recover the outstanding arrears.

Strict limitations apply:

• You can only distrain for unpaid base rent, not for future rent, breach of contract damages, or unpaid CAM fees (unless the lease specifically defines those fees as "rent").
• Under Section 21 of the Landlord and Tenant Act, a landlord may distrain for rent due and in arrear within six months after the determination of the lease, provided certain conditions are met.
• You must follow strict legal procedures regarding inventorying the seized goods, providing notice of the distress, and using licensed bailiffs. Seizing the wrong goods (e.g., goods owned by a third party on consignment) creates massive liability for the landlord.

How Landager Helps

Managing properties in New Brunswick presents unique administrative challenges, most notably the requirement to remit all residential security deposits to the Service New Brunswick Residential Tenancies Tribunal within 15 days of collection. Missing this deadline is a compliance violation. Landager's comprehensive platform aids NB landlords by completely automating the tracking of these crucial deposit timelines, ensuring seamless operations. Furthermore, the platform expertly manages complex notice schedules—such as the mandatory 6-month notice for rent increases or the precise 15-day notice to vacate for non-payment—maintaining immaculate digital records of all communications. Whether managing a multifaceted residential portfolio or overseeing commercial leases, Landager shields you from costly administrative missteps and ensures you always have rigorous, RT-compliant documentation readily available.

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