Commercial Lease Agreement - Short Form (Canada)

Commercial lease agreement to be used when renting / leasing commercial property.

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Commercial Lease Agreement to be used to lease property for any commercial business use (i.e. office building, store etc...).

For more complicated commercial lease arrangements, please see our Commercial Lease Agreement - Long Form.

This form can be used in the following provinces: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Saskatchewan and Yukon.
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.
 
 
Commercial Lease
(Short Form)
 
 
THIS LEASE made as of [Date of Lease] between [Name of Landlord], of [Address of Landlord] (the “Landlord”) and [Name of Tenant], of [Address of Tenant] (the “Tenant”).
IN CONSIDERATION of the mutual covenants contained herein, the Landlord and Tenant hereby agree as follows:
1.   Grant. The Landlord hereby leases to the Tenant and the Tenant hereby leases from the Landlord land known municipally as [Address of Property] and legally described as [Legal Description of Property] (the "Land") together with the building(s) located thereon, including all alterations and additions thereto and replacements thereof (the "Building") (the Land and the Building being collectively referred to as the "Leased Premises"), to have and to hold during the period (the "Term") commencing on [Commencement Date of Lease (ie. July 1,  2003)] (the "Commencement Date") and ending on [Date on which Term of Lease Expires (ie. June  30, 2008)] (the "Termination Date"), subject to the terms and conditions of this Lease.
2.   Rent. The Tenant shall pay to the Landlord, during each year of the Term, as rent for the Leased Premises the [Annual Base Rent (ie. $24,000.00)] (the "Minimum Rent"), in advance and without notice or demand in monthly installments commencing on the Commencement Date. The Tenant shall also pay to the Landlord all other amounts payable by the Tenant to the Landlord or to be discharged as Rent under this Lease (the "Additional Rent") at the times and in the manner provided in this Lease or, if not so provided, as reasonably required by the Landlord. If the Commencement Date is not the first day of a calendar month, Rent for the period from the Commencement Date to the first day of the next calendar month shall be pro-rated on a per diem basis and paid on the Commencement Date and thereafter all subsequent monthly installments of Rent shall be paid in advance on the first day of each calendar month. All amounts payable by the Tenant to the Landlord pursuant to this Lease shall be deemed to be Rent and shall be payable and recoverable as Rent in the manner herein provided and the Landlord shall have all rights against the Tenant for default in any such payment as in the case of arrears of rent.
3.   Net Lease. It is the intent of the Landlord and the Tenant that this Lease shall be fully net to the Landlord.
4.   Landlords Covenants. The Landlord covenants with the Tenant:
(a)   for quiet enjoyment of the Leased Premises; and
(b)   to observe and perform all the covenants and obligations of the Landlord herein.
5.   Tenants Covenants. The Tenant covenants with the Landlord:
(a)   to pay all amounts payable by the Tenant to the Landlord under this Lease (collectively the "Rent");
(b)   to observe and perform all the covenants and obligations of the Tenant herein;
(c)   to use the Leased Premises only for the business of  [Insert use to which Leased Premises will be Put (i.e. an Automobile Dealership)] and any and all uses ancillary thereto;
(d)   to comply with present and future laws, regulations and orders relating to the occupation or use of the Leased Premises;
(e)   not to do, omit to do or permit to be done anything which will cause or shall have the effect of causing the cost of the Landlords insurance in respect of the Leased Premises to be increased at any time during the Term or any policy of insurance on or relating to the Leased Premises to be subject to cancellation.
(f)   to assume full responsibility for the operation and maintenance of the Leased Premises and for the repair or replacement of all fixtures or chattels located therein or thereon.
(g)   to permit the Landlord to enter the Leased Premises at any time outside normal business hours in case of an emergency and otherwise during normal business hours where such will not unreasonably disturb or interfere with the Tenants use of the Leased Premises or operation of its business, to examine, inspect and show the Leased Premises for purposes of leasing, sale or financing, to provide services or make repairs, replacements, changes or alterations as provided for in this Lease and to take such steps as the Landlord may deem necessary for the safety, improvement or preservation of the Leased Premises.
(h)   to take out and maintain, in the name of the Landlord its agents and employees, the Tenant and each mortgagee of the Leased Premises as their interests may appear, all risks property insurance with coverage for the full replacement cost value of the Leased Premises, insurance upon property of every description owned by the Tenant or for which the Tenant is legally liable, comprehensive broad form boiler insurance, comprehensive public liability and broad form property damage insurance with limits of not less than $2,000,000 per occurrence, any other form or forms of insurance as the Landlord may reasonably require, and rental interruption insurance covering a period of at least 12 months payable to the Landlord as the named insured. All insurance policies required under this provision shall provide for a waiver of subrogation against the Landlord or those for whom it is in law responsible. The Tenant shall provide the Landlord with certified copies of each such insurance policy on or before the Commencement Date.
(i)   to promptly pay and discharge all charges, rates, assessments and levies for heat, water, gas, hydro, sewage, and all other utilities supplied to or consumed in the Leased Premises;
(j)   to promptly pay and discharge all taxes, levies, duties, assessments, and license fees whatsoever whether municipal, school, provincial, parliamentary or otherwise levied, imposed or assessed against the Leased Premises or upon the Landlord in respect thereof, or from time to time levied, imposed or assessed in the future in lieu thereof, including those levied, imposed or assessed for education, school and local improvements, or other similar taxes imposed upon the Landlord or the Tenant and including all goods and services taxes, sale taxes, value-added taxes, and any other taxes imposed on the Landlord with respect to this Lease, the services provided hereunder or the Rent (collectively the "Value Taxes"), business taxes, if any, and realty taxes from time to time payable by the Landlord or levied against the Landlord on account of its ownership or operation of the Leased Premises;
(k)   to pay and discharge as Rent the cost of all heating, cooling, ventilating and air conditioning required in the Leased Premises and the cost of all repairs, replacements and improvements to the heating, ventilating, air conditioning and other service and utility systems;
(l)   to maintain the Leased Premises and all improvements therein in good order and condition;
(m)   to pay all of the costs and expenses associated with the Tenants obligations directly to the appropriate party as they come due and shall, at the Landlords request, provide the Landlord with copies of receipts or other proof acceptable to the Landlord that such costs have been paid. If the Tenant fails to perform any obligation under this Lease or to pay any costs and expenses as set out herein, the Landlord may at its sole option and discretion, on seven (7) days written notice to the Tenant, perform such obligation or pay such amounts on behalf of the Tenant and the Tenant shall forthwith upon receipt of an invoice therefor reimburse the Landlord for the cost of such action or the amount of such payment.
6.   Alterations by Tenant. The Tenant may from time to time at its own expense make changes, additions and improvements to the Leased Premises to better adapt the same to its business, provided that any change, addition or improvement shall be made only after obtaining written consent of the Landlord, and shall be carried out in a good and workmanlike manner and only by persons selected by the Tenant and reasonably approved in writing by the Landlord. The Tenant shall pay promptly when due all costs for work done or caused to be done by the Tenant in the Leased Premises which could result in any lien or encumbrance on the Landlords interest in the property, shall keep the title to the property and every part thereof free and clear of any lien or encumbrance.
7.   Damage and Destruction. If during the Term the Leased Premises or any part thereof shall be damaged by fire, lightning, tempest, structural defects or acts of God or by any additional perils from time to time defined and covered in the standard broad-coverage fire insurance policy carried by the Landlord on the Leased Premises, the following provisions shall apply:
(a)   If as a result of such damage the Leased Premises are rendered partially unfit for occupancy by the Tenant, the Rent shall abate in the proportion that the part of the Leased Premises rendered unfit for occupancy by the Tenant is of the whole of the Leased Premises. If the Leased Premises are rendered wholly unfit for occupancy by the Tenant, the Rent shall be suspended until the Leased Premises have been rebuilt and repaired or restored.
(b)   Notwithstanding subsection (a) above, if in the opinion of the Landlords architect or engineer given within 60 business days of the happening of damage, the Leased Premises shall be incapable of being rebuilt, repaired, or restored with reasonable diligence within 180 days after the occurrence of the damage then either the Landlord or the Tenant may, at its option, terminate this Leased by notice in writing to the other given within 15 days of the giving of the opinion of the Landlords architect or engineer. If notice is given by the Landlord or Tenant under this Section, then this Lease shall terminate from the date of such damage and the Tenant shall immediately surrender the Leased Premises and all interest therein to the Landlord and the Rent shall be apportioned and shall be payable by the Tenant only to the date of the damage and the Landlord may thereafter re-enter and repossess the Leased Premises.
(c)   If the Leased Premises are capable with reasonable diligence of being rebuilt, repaired or restored within 180 days of the occurrence of such damage, then the Landlord shall proceed to rebuild, restore or repair the Leased Premises with reasonable promptness within 180 days plus any additional period due to delay caused by strikes, lock-outs, slow-downs, shortages of material or labor, acts of God, acts of war, inclement weather or other occurrences which are beyond the reasonable control of the Landlord, and the Rent shall abate in the manner provided for in subsection (a) above until the Leased Premises have been rebuilt, repaired or restored; provided that nothing in this Section shall in any way be deemed to affect the obligation of the Tenant to repair, maintain, replace or rebuild the Leased premises as otherwise provided by the terms of this Lease.
8.   Indemnity. The Tenant shall indemnify and save harmless the Landlord and its agents and employees from any and all liabilities, damages, costs, claims, suits or actions growing or arising out of:
(a)   any breach, violation or non-performance of any covenant, condition or agreement in this Lease set forth and contained on the part of the Tenant to be fulfilled, kept, observed and performed;
(b)   any damage to property while the property is in or about the Leased Premises; and
(c)   any injury to person or persons including death resulting at any time therefrom occurring in or about the Leased Premises.
9.   Limitation of Landlords Liability. The Landlord and its agents and employees shall not be liable for any damage to the Leased Premises or any property located therein caused by any latent defect or by steam, water, rain or snow which may leak into, issue or flow from any part of the Leased Premises or from the water, steam, sprinkler or drainage pipes or plumbing works of the same or from any other place or from any damage caused by or attributable to the condition or arrangement of any electrical or other wiring or for any damage caused by anything done or omitted to be done by any person or for damage caused by interruption or failure of any service or utility or for damage however caused to merchandise, stock in trade, books, records, files, money, securities, negotiable instruments, papers or other valuables.
10.   Interest and Costs. The Tenant shall pay monthly to the Landlord interest at a rate equal to the lesser of the prime rate established as such by the Landlords bank from time to time plus one per cent per annum and the maximum rate permitted by applicable law, upon any default in payment of Rent from the due date for payment thereof until the same is fully paid and satisfied.
11.   Events of Default. Upon the occurrence of any of the following events (an “Event of Default”):
(a)   all or any part of the Rent hereby reserved is not paid when due and upon written notice by the Landlord default continues for five (5) days after notice thereof; or
(b)   the Term or any goods, merchandise, stock in trade, chattels or equipment of the Tenant is seized or is taken or exigible in execution or in attachment or if a writ of execution is issued against the Tenant or if a creditor takes possession thereof; or
(c)   the Tenant or any person or corporation bound to perform the obligations of the Tenant hereunder either as guarantor or indemnifier or as one of the parties constituting the Tenant takes any steps or suffers any order to be made for its winding-up or other termination of its corporate existence or becomes insolvent or commits an act of bankruptcy or becomes bankrupt; or
(d)   the Tenant makes a bulk sale of its goods or moves or commences, attempts or threatens to move its goods, chattels and equipment out of the Leased Premises (other than in the normal course of its business) or ceases to conduct business from the Leased Premises for in excess of 14 days; or
(e)   the Tenant fails to observe, perform and keep each and every of the covenants, agreements and conditions herein contained to be observed, performed and kept by the Tenant and persists in the failure after 10 days notice by the Landlord requiring the Tenant to remedy, correct, desist or comply (or if any breach would reasonably require more than 10 days to rectify.
the Landlord may, at its option, and in addition to and without prejudice to all rights and remedies of the Landlord available to it either by any other provision of this Lease or by statute or the general law:
(i)   be entitled to the full amount of the current months and the next three months installments of Rent which shall immediately become due and payable and the Landlord may immediately distrain for the same, together with any arrears then unpaid;
(ii)   without notice or any form of legal process, forthwith re-enter upon and take possession of the Leased Premises or any part thereof in the name of the whole and re-let the Leased Premises or any part thereof on behalf of the Tenant or otherwise as the Landlord sees fit and remove and sell the Tenants merchandise, stock in trade, goods, chattels and trade fixtures therefrom, any rule of law or equity to the contrary notwithstanding;
(iii)   seize and sell such goods, chattels and equipment of the Tenant as are in the Leased Premises and may apply the proceeds thereof to all Rent to which the Landlord is then entitled under this Lease. Any such sale may be effected by public auction or otherwise, and either in bulk or by individual item, all as the Landlord in its sole discretion may decide;
(iv)   terminate this Lease by leaving upon the Leased Premises ten (10) days prior written notice of the termination, and termination shall be without prejudice to the Landlords right to damages; it being agreed that the Tenant shall pay to the Landlord as damages the loss of income of the Landlord to be derived from the Leased Premises for the unexpired portion of the Term had it not been terminated, provided that the Landlord shall not be entitled in any event to receive any damages greater than those damages the Landlord would be entitled to receive at law; or
(v)   re-enter into and upon the Leased Premises or any part thereof in the name of the whole and repossess and enjoy the same as of the Landlords former estate, anything herein contained to the contrary notwithstanding;
and the Tenant shall pay to the Landlord forthwith upon demand all expenses of the Landlord in re-entering, terminating, re-letting, collecting sums due or payable by the Tenant or realizing upon assets seized including tenant inducements, leasing commissions, legal fees on a solicitor and client basis and all disbursements and the expense of keeping the Leased Premises in good order, and preparing the same for re-letting.
12.   No Assignment By Tenant. The Tenant shall not assign, sublet, pledge or transfer this Lease or any interest therein or in any way part with possession of all or any part of the Leased Premises, or permit all or any part of the Leased Premises to be used or occupied by any other person without the Landlords prior written consent, which consent may not be unreasonably withheld.
13.   Surrender. Upon the expiration or other termination of the Term, the Tenant shall immediately quit and surrender possession of the Leased Premises and all leasehold improvements in substantially the condition in which the Tenant is required to maintain the Leased Premises excepting only reasonable wear and tear, and upon surrender, all right, title, and interest of the Tenant in the Leased Premises shall cease.
14.   Overholding. If the Tenant continues to occupy the Leased Premises after the expiration or other termination of the Term without any further written agreement, the Tenant shall be a monthly tenant at an Minimum Rent equal to two times the Minimum Rent paid by the Tenant immediately prior to the expiration or other termination of the Term but subject to all other provisions in this Lease.
15.   Entire Agreement. There is no promise, representation or undertaking by or binding upon the Landlord except such as are expressly set forth in this Lease, and this Lease including the Schedules contains the entire agreement between the parties hereto.
16.   Registration. The Tenant agrees not to register this Lease without the prior written consent of the Landlord.
17.   Notice. Any notice required or contemplated by any provision of this Lease shall be given in writing and shall be sufficiently given if mailed by registered mail or delivered or if sent by telecopy or similar form of immediate transmission and if to the Landlord, delivered to the address set out on page 1 and if to the Tenant, personally (or to a partner or officer of the Tenant if the Tenant is a firm or corporation) or delivered to the Leased Premises (whether or not the Tenant has departed from, vacated or abandoned the same). Any notice shall be deemed to have been received five postal delivery days after the date of mailing or on the day following the date of delivery or sending. If it is reasonably anticipated that mail service may be disrupted, notice must be delivered or sent by telecopy or other form of immediate transmission.
18.   Governing Law. This Lease shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the Province of [Province (ie. Ontario)].
19.   Amendment or Modification. No amendment, modification or supplement to this Lease shall be valid or binding unless set out in writing and executed by the Landlord and the Tenant.
20.   Force Majeure. In the event that either party hereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes, lock-outs, labor troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrection, war or other reason of a like nature not the fault of the party delayed in performing work or doing acts required under the terms of this Lease, then performance of such act shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent tot he period of such delay.
21.   Severability. All of the provisions of this Lease are to be construed as covenants and agreements. If any provision of this Lease is illegal or unenforceable, it shall be considered separate and severable from the remaining provisions of this Lease, which shall remain in force and be binding as thought he provision had never been included.
22.   Time of the Essence. Time shall be of the essence hereof.
23.   Successors and Assigns. This Lease shall enure to the benefit of and be binding upon the successors and assigns of the Landlord and the heirs, executors and administrators and the permitted successors and assigns of the Tenant.
IN WITNESS WHEREOF the Landlord and the Tenant have executed this Lease as of the date first set forth above.
 
 
 
Witness
 
[NAME OF LANDLORD]
 
 
 
Witness
 
[NAME OF TENANT]
 
Number of Pages10
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#28285

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