Declarations: the constitution of condominium corporations
Our previous post on special assessments highlighted various benefits buyers enjoy when they purchase condominium units. These benefits include flexibility, affordability, a sense of community and access to on-site amenities. In today’s post, we will examine condominium declarations and their importance to prospective buyers. What is a Condominium Declaration? A Condominium Declaration is the constitution […]
The need for Insurance and Indemnity Clauses
In our previous posts, we focused on the importance of clarity and precision when drafting commercial lease agreements. Certain unforeseen circumstances may occur and present risks to be shouldered by the landlord or tenant. Since no reasonable person would gratuitously accept liabilities, it’s important to be clear in the insurance and indemnity clauses who will […]
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 […]
The Ontario Business Corporations Act: Changes Made.
Previously, in our Business Structure series, we considered how incorporation is possible at the provincial or federal level. The Ontario Business Corporations Act (“OBCA”), R.S.O. 1990, c. B.16 governs the incorporation and operation of corporations established in the province of Ontario. Effective from July 5, 2021, certain positive amendments were made to the OBCA by […]
Adjustments on closing
While the closing day signifies the end of a lengthy journey to finalizing a purchase of property, it also comes with additional expenses for Buyers to pay before they can truly own their new home. In most instances, there are certain prepaid costs that the Buyer would have to pay on closing day. Although these […]