Fix issue in the Commercial Lease Agreement

Aug 6th, 2022
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How to fix issue in the Commercial Lease Agreement

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[Music] good morning everyone today is tuesday september 1st im joanne coons im here with my partners jackie durham and marina parkin as always we are trying to bring you interesting and relevant business and real estate and tax topics um from both legal and tax perspective accounting perspective we have quite a tag team here today so uh this afternoon this morning we wanted to talk about commercial leases and were talking about them really from a tenant perspective today there are different considerations to make if you are the landlord but today we wanted to talk about it from the tenant perspective whether youre already involved in a commercial lease looking at a renewal considering leaving a job and starting a business where you might need a lease we wanted to kind of go over some of the considerations that are frequently overlooked some of the times that we surprise people when we review a commercial lease or draft one oftentimes we hear comments about why it takes so long or

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[1] The only commercial tenancy specific legislation currently in place is the Commercial Tenancies Protection Act, which was introduced in response to the COVID-19 pandemic and therefore has limited application to defaults on rental payments between March 17, 2020 and August 31, 2020.
You will need to know both when the break can be exercised and how much notice you must give. The lease may set out a single break date, either expressly (for example, 25March 2028) or by reference to the date the term began (for example, on the fifth anniversary of the term commencement date).
The principle established by the CCQ is that the landlord must make all necessary repairs to the building and assume the expenses of such repairs, except for minor maintenance repairs, which must be carried out by the tenant[10].
Even though lease agreements are legally binding contracts, it is possible for a landlord or tenant to end a lease early. However, there are very specific legal grounds in Alberta for breaking a lease: The agreement was branched by either the landlord or tenant. The tenant is moving.
A break clause is a contractual provision that grants one or both parties the right to terminate a lease early. It acts as an escape route, allowing parties to exit a lease before the end of the contractual term, providing flexibility in an ever-changing business environment.
If a tenant wants to terminate their fixed-term lease early, they must pay the rent for the remaining term of the lease agreement unless there is a clause in the lease allowing the tenant to end the lease early. Tenants can sublet or assign the lease unless it is prohibited by the lease.
Maintenance contemplates taking steps to avoid deterioration of the building and its systems through preventative and corrective measures. Examples of maintenance might include painting, cleaning, servicing and lubricating equipment, clearing drains and gutters, and replacing light bulbs.
If you have a fixed-term lease, you cannot leave before the lease ends or you risk paying damages to the landlord for bdocHubing your lease agreement. If you have a periodic tenancy (which has no fixed end date), you still have to give the landlord notice before you leave.

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