Commercial Lease Agreement Ontario Covid

On June 3, 2020, the Quebec government introduced Bill 61 – A law to revive Quebec`s economy and mitigate the consequences of the health emergency declared on March 13, 2020 due to the pandemic of COVID 19 (the “Bill”). The bill is expected to be a general response to the pandemic and includes emergency measures to accelerate projects in certain economic sectors. A series of amendments to the bill introduced on June 4, 2020 were intended to prohibit the termination of commercial leases, prohibit the seizure of real estate on the site and prohibit the registration of Hypothec`s notices for unpaid rent from March 13, 2020 to August 1, 2020. Whether the lease is terminated or not, the lessor can sue the tenant who is late for renting. If the lease has been terminated, the lessor may sue because of a late payment until the termination date and the possible recovery of the rent due for the non-due period. If the lease is not terminated, the lessor can take legal action on the grounds that the lease remains in effect and that any delay in tenancy constitutes a violation of its terms. This is an important distinction and can affect an owner`s overall recovery. For this reason, each landlord must consider these options – including the effect of terminating the lease before making a formal decision. We can help you make that decision. On March 25, New Brunswick passed a renewed and revised mandatory ordinance that no lessor may, with respect to a commercial tenancy agreement, give a tenant notice of exit, reintroduction or re-possession of the denied premises or exercise a distress right until May 31 for non-payment of the rent due after March 19.

For more information, click here. Commercial rental advertisements are a particularly sensitive economic problem that the state must address. Unlike the housing market, many commercial homeowners are themselves financed by borrowing because they have borrowed from non-traditional lenders. All lenders should check whether any of the remedies mentioned above are compromised by other provisions of their leases. The provisions of a tenancy agreement relating to infringements, late fees, termination rights, severance pay and reintroduction may clarify or limit the lessor`s rights and obligations in prosecuting one of the remedies mentioned above. Courts may also consider a number of other factors, including the length of the lease, the history of defaults and the tenant`s ability to restore the lease to good condition. If special circumstances are at stake, these factors may weigh more heavily in the tenant`s favour. Ontario`s decision included, for example, a unique scenario in which the tenant would have lost the advantage of applying for a licence for a cannabis retail store for premises and other sites, which was of the utmost importance to the business. The Saskatchewan government has not imposed a moratorium on forced evictions, whether commercial or not. Saskatchewan`s Landlord – Tenant Act is similar in operation with Section 18 of the ONCTA, with the notable exception that a landlord`s right to withdraw for non-payment of rent only crystallizes after two full months, after the tenant has not paid both the rent and corrected the loss in the interim.

As in other provinces, it is advisable to continue the evacuation only after assistance by judicial decision, especially during the current crises. In addition, commercial lease disputes must be referred to the Saskatchewan Court of Queen`s Bench (“SKQB”). However, the SKQB ceased normal operations on 20 March 2020, subject to the exceptions provided by the ABQB (described above). In Ontario1, similar measures have been temporarily put in place to prevent landlords from terminating leases or exercising emergency rights when they are eligible for CECRA or if they are eligible for other purposes; However, these measures do not exempt tenants from their tenancy obligation or give the tenant the right to pay reduced rent.2 The expiry of the