Negotiating Rent Abatement

The rent abatement clause is one of the most beneficial clauses tenants negotiate in a commercial lease agreement. In today’s post, we will discuss rent abatement, its advantages to tenants, and the circumstances that may be appropriate. What is rent abatement? Rent abatement is an agreement between a landlord and a tenant that permits the […]

Relocation Rights

Our previous post highlighted essential considerations that tenants should keep in mind before entering into lease agreements. One of these is relocation rights, which is a right that enables a landlord to relocate the tenant to another unit or space, usually within the same location/building. Today’s post will explore this right in more detail, focusing […]

Negotiating conditions precedent to tenant possession

It is prevalent for commercial leases to require that certain conditions be met before the tenant is obligated to take legal possession of the premises. These provisions articulate how certain third party risks are allocated between the landlord and tenant in cases where a premise needs to be materially reconfigured for the new tenant’s use. […]

Transfer rights under a commercial lease agreement

One important clause to be negotiated in a commercial lease agreement is the transfer right clause. It can materially restrict the tenant’s ability to sell its business or its interest in the leasehold interest. Today’s blog post will examine the circumstances in which a tenant can obtain a transfer right, the forms of transfer, and […]

Expansion Rights: Growing as a Tenant

There are many vital considerations business owners have in mind when negotiating a lease agreement. One such consideration is the need for additional space when the business grows. Often enough, landlords include “expansion rights” to induce tenants to enter into a commercial lease agreement. These expansion rights can either impose restrictions on the tenant or […]

Non-disturbance agreements and how it benefits you as a Tenant

In our previous post, we discussed concerns that may arise for tenants who discover the financial difficulty faced by their landlord in paying off a mortgage over a property. This concern is further heightened when the mortgagee’s interest in the property was registered before a tenant’s notice of lease, leaving the tenant open to the […]

The Seven-Item Checklist of a watchful Tenant

A lease agreement is a contract between a landlord and tenant that sets out the respective rights and obligations of the parties in connection with the use of the property subject to the lease. There are several provisions under a lease agreement that tenants sometimes overlook in their haste to conclude the transaction. In today’s […]

What happens when your landlord becomes insolvent?

One of our previous posts examined letters of credit and the security they provide to landlords under commercial leases. In our blog post today, we would discuss the reverse of this situation and highlight the concerns that may arise for a commercial tenant when their landlord becomes insolvent. In most commercial leases, landlords often scrutinize […]

Why you should not be a “hedging” tenant.

One of the most crucial clauses in a lease agreement is the “option to renew” clause. Essentially, this clause provides a tenant with the option to renew the lease for another term after the expiration of the initial lease term. As explained in a previous post, this clause usually depends on the tenant not being […]

Relief from Forfeiture of Corporate Property

There are several reasons why a corporation can be dissolved, including a failure to meet provincial corporate requirements or evading annual return filing. When this dissolved corporation owns assets at the time of dissolution, the corporation will forfeit the assets to the Crown. However, there are instances when the Government allows a claim to the […]