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Commercial Tenancy Agreement for Canada

Commercial Tenancy Agreement Template for Canada

A Commercial Tenancy Agreement governed by Canadian law is a legally binding contract that establishes the terms and conditions under which a commercial property is leased from a landlord to a tenant. This document outlines crucial aspects including rent payments, maintenance responsibilities, permitted use of the premises, insurance requirements, and other obligations of both parties. It incorporates relevant provincial commercial tenancy laws and regulations, while addressing specific requirements for commercial properties in Canada, including GST/HST considerations and provincial-specific commercial property regulations.

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What is a Commercial Tenancy Agreement?

The Commercial Tenancy Agreement is essential for formalizing the lease of commercial real estate in Canada. This document is used when a property owner (landlord) wishes to lease commercial space to a business entity (tenant) for commercial purposes such as retail, office, industrial, or mixed-use. The agreement must comply with provincial commercial tenancy legislation and relevant federal laws, while addressing specific commercial requirements such as operating costs, maintenance obligations, and improvement allowances. The Commercial Tenancy Agreement serves as a comprehensive framework that protects both parties' interests, ensures clear understanding of rights and obligations, and provides mechanisms for dispute resolution. It is particularly important in the Canadian context where commercial lease arrangements must account for specific provincial regulations, tax implications, and commercial property standards.

What sections should be included in a Commercial Tenancy Agreement?

1. Parties: Identifies and provides full legal details of the landlord and tenant

2. Background: Provides context for the agreement and brief description of the premises

3. Definitions: Defines key terms used throughout the agreement

4. Demise: Formal granting of the lease and specification of the premises

5. Term and Renewal: Duration of the lease and any renewal options

6. Rent and Other Payments: Base rent, additional rent, operating costs, and payment terms

7. Security Deposit: Amount, terms and conditions of the security deposit

8. Use of Premises: Permitted and prohibited uses of the leased premises

9. Maintenance and Repairs: Responsibilities of landlord and tenant for maintenance and repairs

10. Utilities and Services: Responsibility for utilities and building services

11. Insurance: Required insurance coverage for both parties

12. Assignment and Subletting: Terms for transferring or sharing the leased premises

13. Alterations and Improvements: Rules regarding modifications to the premises

14. Landlord's Access: Conditions under which landlord may enter premises

15. Default and Remedies: Events of default and available remedies

16. Termination: Conditions and process for ending the lease

17. Notice: How and where notices must be delivered

18. General Provisions: Standard legal provisions including governing law

What sections are optional to include in a Commercial Tenancy Agreement?

1. Operating Costs: Detailed section on operating cost calculations and allocations, used in triple net leases

2. Environmental Matters: Specific environmental obligations and representations, important for industrial or potentially contaminated properties

3. Parking: Detailed parking rights and restrictions, used when parking is a significant feature

4. Signage: Rules regarding exterior and interior signage, important for retail locations

5. Common Areas: Rights and obligations regarding shared spaces, used in multi-tenant buildings

6. Security Services: Provisions for security services and systems, important for high-security premises

7. Building Rules: Specific building rules and regulations, used in office buildings or shopping centers

8. Tax Provisions: Detailed tax payment and contest rights, used in triple net leases

9. Construction Obligations: Used when either party must complete construction work

10. Operating Covenants: Required for retail locations with specific operating requirements

What schedules should be included in a Commercial Tenancy Agreement?

1. Schedule A - Floor Plan: Detailed plan showing the leased premises and measurements

2. Schedule B - Legal Description: Legal description of the property

3. Schedule C - Rent Schedule: Detailed breakdown of rent payments and escalations

4. Schedule D - Landlord's Work: Description of any work to be completed by landlord

5. Schedule E - Tenant's Work: Description of any tenant improvements or fit-up work

6. Schedule F - Operating Costs: Detailed list of includable and excludable operating costs

7. Schedule G - Building Rules: Detailed building rules and regulations

8. Schedule H - Environmental Disclosure: Environmental conditions and requirements

9. Schedule I - Service Standards: Standards for building services and maintenance

10. Schedule J - Form of Tenant's Insurance Certificate: Required form for proof of insurance

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

Agreement Contract

Cost

Free to use
Relevant legal definitions






































Clauses




































Relevant Industries

Real Estate

Retail

Office Space

Industrial

Manufacturing

Hospitality

Healthcare

Technology

Professional Services

Logistics and Warehousing

Education

Entertainment

Food and Beverage

Financial Services

Relevant Teams

Legal

Real Estate

Facilities Management

Finance

Operations

Risk Management

Procurement

Compliance

Property Management

Asset Management

Corporate Services

Administration

Relevant Roles

Property Manager

Real Estate Manager

Facilities Manager

Legal Counsel

Chief Financial Officer

Business Operations Manager

Procurement Manager

Risk Manager

Commercial Lease Administrator

Asset Manager

Real Estate Director

Chief Operating Officer

Compliance Officer

Store Manager

Regional Manager

Corporate Real Estate Manager

Industries










Teams

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