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Commercial Lease Demand Letter for Canada

Commercial Lease Demand Letter Template for Canada

A formal written communication used in Canadian commercial property relationships to address lease violations or defaults, typically involving unpaid rent or other breaches of lease terms. This document serves as an official demand for payment or correction of lease violations, outlining specific defaults, amounts owed, and required remedial actions. It functions within the framework of Canadian commercial tenancy laws and provides a crucial step in the legal process before pursuing further enforcement actions. The letter must comply with provincial commercial tenancy regulations and proper notice requirements while maintaining professional standards of business communication.

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What is a Commercial Lease Demand Letter?

The Commercial Lease Demand Letter is a critical document in Canadian commercial property management, serving as a formal notification and demand mechanism when lease terms have been violated. This document is typically used when a commercial tenant has defaulted on rent payments or breached other significant lease terms, and previous informal communication attempts have been unsuccessful. The letter must be carefully crafted to comply with Canadian provincial commercial tenancy laws and regulations, potentially serving as evidence in future legal proceedings. It should clearly state the nature of the default, specify the exact amounts owed or violations to be corrected, and provide a reasonable timeframe for compliance. The document generally precedes more serious legal actions such as lease termination or legal proceedings for recovery of amounts owed.

What sections should be included in a Commercial Lease Demand Letter?

1. Sender Information: Full legal name, address, and contact details of the landlord or property management company

2. Date: Current date of the letter

3. Recipient Information: Full legal name and address of the tenant, including the leased premises address

4. Lease Reference: Details of the relevant lease agreement including date of execution and property description

5. Default Description: Clear statement of the lease violation or default, including specific amounts owed if applicable

6. Payment History: Summary of relevant payment history or breach history

7. Demand Statement: Specific demand for payment or correction of breach, including exact amounts and deadline

8. Legal Consequences: Statement of legal actions that will be taken if the demand is not met

9. Response Requirements: Instructions for how the recipient should respond or make payment

What sections are optional to include in a Commercial Lease Demand Letter?

1. Previous Communications: Reference to prior notices or communications regarding the default, used when there has been a history of correspondence

2. Interest Calculations: Detailed breakdown of interest charges, if applicable to the outstanding amounts

3. Cure Provisions: Specific steps the tenant can take to remedy the default, used when multiple options for resolution are available

4. Without Prejudice Statement: Legal disclaimer preserving the landlord's rights, used in more formal or serious cases

5. Settlement Options: Proposed payment plans or settlement terms, used when the landlord is willing to negotiate

What schedules should be included in a Commercial Lease Demand Letter?

1. Statement of Account: Detailed breakdown of all outstanding amounts, including rent, utilities, late fees, and interest charges

2. Copy of Lease Agreement: Relevant excerpts or complete copy of the lease agreement highlighting pertinent terms

3. Payment Records: Documentation of payment history and missed payments

4. Notice History: Copies of previous notices or relevant correspondence

5. Proof of Default: Documentation evidencing the specific breach or default (photos, inspection reports, etc.)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Demand Letter

Cost

Free to use
Relevant legal definitions




















Clauses















Relevant Industries

Real Estate

Commercial Property Management

Retail

Office Space

Industrial

Hospitality

Healthcare

Professional Services

Manufacturing

Warehousing

Restaurant and Food Services

Financial Services

Relevant Teams

Legal

Real Estate

Property Management

Operations

Finance

Risk Management

Collections

Asset Management

Tenant Relations

Administration

Relevant Roles

Property Manager

Real Estate Manager

Lease Administrator

Legal Counsel

Asset Manager

Operations Director

Financial Controller

Collections Manager

Facilities Manager

Real Estate Director

Tenant Relations Manager

Commercial Property Administrator

Risk Manager

Compliance Officer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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