Verhaeghe Law Office has been representing Albertans with their commercial real estate transactions since the firm was founded. Our commercial real estate lawyers have handled numerous transactions where we’ve helped clients with purchases, sales, refinancing of mortgages, legal agreements, mortgages, builders’ liens, expropriations, development appeals, condo development and governance, litigation and more. From our commercial real estate experience, we have put together a list of things you should look for in a commercial lease.
By no means is this list exhaustive nor does it qualify as legal advice. For answers to your specific real estate legal questions, we always recommend you speak with a real estate lawyer. Call our office today if you are in need of legal advice regarding your commercial lease by dialing 587-410-2500 or book a consultation with us online now.
Before entering into any commercial real estate agreement, we recommend you do an online background check or find out as much information as you possibly can about the landlord or the tenant. Besides the obvious of doing a credit check if you’re a landlord – make sure you get a list of references for extra reassurance that your new landlord or tenant has a decent record.
Here is a rudimentary list of things to look for in a commercial lease:
- Cost and default: Ensure the costs are all outlined in the lease agreement. In addition to what’s included in the costs, you need to be aware of what’s not included in these costs as well. Ensure you have a clause on what happens if the tenant defaults on payment as well.
- Length: Another obvious item is the length or duration of the contract. You also need to understand when the contract ends and what rights are available to you should you wish to terminate the lease earlier whether you’re the landlord or tenant.
- Sublease restrictions or limitations: Make sure you outline whether subleasing is allowed, restrictions and limits, and the terms of any subleasing arrangements. Responsibility of costs should also be outlined in any sublease clauses.
- Jurisdiction: It’s important to note what geographic area or jurisdiction the lease takes place in. Remember, certain jurisdictions may have different laws and regulations than other jurisdictions.
- Security deposit: Most leases require a security deposit that the landlord may use in the event there is any damage caused by the tenant. The terms and conditions surrounding how and when these funds are used should be included in the lease agreement.
- Insurance requirements: Clearly outline that tenants and landlords are both required to have their own insurance policy for the premise. We’ve seen many cases where tenants erroneously believe there are covered under the landlord’s insurance policy, but this is not always the case.
- Rights and responsibilities: Ensure that all rights and responsibilities of both parties (landlord and tenant) are clearly outlined in the agreement to avoid any ambiguity on who is responsible for what and what you’re not responsible for.
Speak with a commercial real estate lawyer from Verhaeghe Law Office
Our Alberta commercial real estate lawyers and business lawyers can provide legal advice and services on many related areas of commercial leases including enforcement of leases, lease dispute resolution and litigation, land development, drafting agreements, re-assignments and change of ownerships, guarantees and indemnities, renewals, termination issues, breaches of commercial leases and more. Contact Verhaeghe Law Office today by dialing 587-410-2500 and speak with a commercial real estate lawyer today.
With offices in Whitecourt, Athabasca and Edmonton – our legal team can get to work on your commercial lease matters as soon as possible.
Disclaimer: Please note this article is intended to act as a general overview on a topic and does not constitute legal advice. Each situation requiring legal advice is unique and we recommend speaking with a commercial real estate lawyer from Alberta regarding your real estate transaction.
