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May 30, 2024 · Steps to Break a Commercial Lease. Review the Lease Agreement. Termination Clause: Check your lease agreement for a termination clause that outlines the conditions under which you can break the lease early. Notice Period: Understand the required notice period for early termination and any penalties that may apply.
Fundamental Breach of Commercial Leases. Introduction. A typical commercial lease is not a balanced document in terms of rights and remedies for a breach of the lease. There will be long list of tenant defaults that will give the landlord a full range of remedies. This will include a right to enter the premises and terminate the lease for any ...
- When A Tenant Breaks A Commercial Lease
- Remedies Available to Landlords
- When A Landlord Breaks A Commercial Lease
- Other Considerations
When a tenant breaks a commercial lease, the first step for landlords is to determine the type of breach (known as the “default”.) Depending on the nature of the default, the landlord will be able to use different remedies. Generally speaking, a default will fall into one of two categories: 1. A monetarydefault, where a tenant fails to pay rent or ...
If the tenant fails to remedy the default within the applicable notice period the landlord may take further action. The main decision the landlord must make is whether to evict the tenant by ending the lease or try to preserve the relationship with the tenant while still recovering damages.
Tenants have a variety of potential remedies to pursue when their landlord breaches the terms of their commercial lease or when they are facing legal action from their landlord.
Know Your Notice Periods
A notice period is a timeline in which a tenant must remedy the default of a lease agreement. The applicable notice period is normally set out in the lease itself. Notice periods may be different for monetary and non-monetary defaults. Where a lease does not specify the notice period, the Commercial Tenancies Act allows a landlord to terminate a lease if rent has not been paid for more than 15 days. By contrast, non-monetary default notice periods are often longer.
Watch for Waivers
A landlord’s right to terminate a lease may be considered waived if a tenant can prove that the landlord knew of a breach but acted as if the lease was still in effect. For example, if a tenant were in breach of some term of a lease but the landlord continued to accept rental payments, the tenant could later argue that the landlord’s willingness to keep accepting rent constituted a waiver of the other term breach.
Call Our Toronto and Hamilton Business Lawyers Today. If your tenant has failed to pay rent and left you high and dry, call today to speak with our Toronto and Hamilton lawyers at 1-647-495-8995. We will gladly provide a confidential assessment of your breach of commercial lease case. Alternatively, fill out the Case Form on the left of this page.
Feb 9, 2021 · For general counsel, terminating a business’s commercial lease can quickly escalate into a major matter. Commercial real estate law is complex, and the uninitiated can potentially stumble onto landmines. Furthermore, most landlords, property managers, and commercial real estate brokers (and their lawyers) are much more familiar with the legal ...
Nov 23, 2023 · If the lease does not provide for any termination right, terminating the lease would likely constitute a breach of contract. In considering the risks associated with breaching the lease, some relevant factors include, but are not limited to, the amount of rent payable under the lease; the amount of time remaining in the term; and the remedies provided in the lease for breach of contract, and ...
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Free Consultation to Break Commercial Lease in Toronto. If you have any questions or are just looking for legal advice on how to break your commercial lease, I invite you to call me, Jonathan Kleiman, at 416-554-1639 for a free consultation. My experience and knowledge with commercial contracts and leases from small businesses to large ...
