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Category Archives: Commercial leasing

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Negotiating a Tenant’s Restoration Obligations: A Reminder on Reasonable Wear and Tear Exceptions in B.C.

Posted in Commercial leasing
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One of the many issues commonly negotiated between landlords and tenants is the condition of the state of repair that the premises must be in at the expiry of the lease. Typically, a standard form lease will require that the tenant return the premises to the landlord in the same condition as that which it… Continue Reading

Insolvent Commercial Tenants – What Happens Now?

Posted in Commercial leasing
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Recently, a number of retail enterprises have availed themselves of the protection of the Bankruptcy and Insolvency Act (BIA) and the Companies’ Creditors Arrangement Act (CCAA), Canada’s insolvency statutes.  The BIA and CCAA, as federal statutes, have various provisions that allow a debtor to deal with their leases in a manner which may be inconsistent… Continue Reading

Managing the Relationship between Landlord, Tenant and Tenant’s Lender

Posted in Commercial leasing
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Landlords who enter into commercial leases with tenants accept, and expect in return, some degree of liability as spelled out in leases and commercial tenancy legislation. After all, leases are intended to be two-way streets: the landlord provides the tenant with a leasehold interest in real property, and the tenant pays rent in return. Understandably,… Continue Reading

Protecting Security Deposits From Insolvency Risk: The Implications of Alignvest PDL v Surefire Industries

Posted in Commercial leasing
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The recent decision of the Alberta Court of Queen’s Bench in Alignvest Private Debt Ltd v Surefire Industries Ltd, 2015 ABQB 148 (“Alignvest”) raises important issues for landlords to consider respecting the provisions in a lease that deal with security deposits. In particular, Alignvest provides guidance on how landlords can protect their rights to a… Continue Reading

Offers to Lease: How to avoid getting more (or less) than you bargained for

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It is common practice in lease negotiations for the parties to begin by informally negotiating the major lease terms. When the parties reach consensus on these major terms, they execute an offer to lease.  Such offer may be binding or non-binding.  A binding offer to lease is a contract itself and is enforceable.  Both parties… Continue Reading

How Solid is Your Rent Guarantee?

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A recent case from the BC Supreme Court has highlighted yet again that a guarantee or indemnity of a lease (here now referred to as an “Indemnity”) does not necessarily assure payment to a landlord following a default by a tenant.  The terms of the Indemnity must be carefully scrutinized and examined to determine if… Continue Reading

“Additional Rent” and a Tenant’s “Proportionate Share”

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Most commercial leases contain terms that require tenants to pay additional rent. Additional rent is usually a share of the costs and charges incurred to operate the property. These costs can include municipal taxes, insurance premiums, repair and maintenance costs and common area utility charges. In any given year, these charges change and fluctuate.  Landlords… Continue Reading