Commercial Lease Agreement - Template, Sample Form Pro · EN-CA-law
✓ Valid in Canada (English) · drafted to comply with local law
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COMMERCIAL LEASE AGREEMENT
(Province of ________)
THIS COMMERCIAL LEASE AGREEMENT (this "Lease") is made and entered into as of ________ (the "Effective Date").
BETWEEN:
________, a corporation/entity having its registered office at ________ (the "Landlord");
- and -
________, a corporation/entity having its registered office at ________ (the "Tenant").
The Landlord and the Tenant are collectively referred to as the "Parties" and individually as a "Party". In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
§ 1. LEASED PREMISES
1.1 The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the following premises (the "Premises"):
________
1.2 The Premises are municipally described as:
________
1.3 The legal description of the lands of which the Premises form part is:
________
1.4 The Premises comprise a rentable area of approximately ________ (________) square feet.
1.5 The Premises shall be used by the Tenant solely for the following permitted use (the "Permitted Use"): ________, and for no other purpose without the prior written consent of the Landlord.
§ 2. TERM
2.1 The term of this Lease (the "Term") shall commence at 12:01 a.m. on ________ (the "Commencement Date") and, unless earlier terminated or renewed in accordance with this Lease, shall expire at 11:59 p.m. on ________.
2.2 Either Party may terminate this Lease upon not less than ________ days' prior written notice to the other Party, such termination to be effective on the last day of the month following the month in which notice is given.
2.3 Provided the Tenant is not in default, the Tenant shall have the right to renew this Lease for ________ further term(s) of ________ upon written notice delivered to the Landlord not less than ________ days prior to the expiry of the then-current Term, on the same terms save as to rent and this renewal right.
2.4 The Tenant shall notify the Landlord in advance of any anticipated extended absence from the Premises.
§ 3. RENT
3.1 The Tenant shall pay to the Landlord, without deduction, set-off or abatement except as expressly provided herein, base rent in monthly instalments of $________ (________), being equivalent to $________ per square foot per month ("Rent").
3.2 Rent shall be increased by ________% (________ percent) on each anniversary of the Commencement Date.
3.3 Rent is payable in advance on or before the ________ day of each and every month during the Term.
3.4 All Rent and other amounts payable under this Lease are exclusive of applicable Goods and Services Tax (GST), Harmonized Sales Tax (HST) and any other applicable sales or value-added taxes, which shall be paid by the Tenant in addition to the Rent.
3.5 Rent payments shall be made to the Landlord at the following address:
________
3.6 The Landlord may change the address at which payments are made by giving written notice to the Tenant.
§ 4. SECURITY DEPOSIT
4.1 Upon execution of this Lease, the Tenant shall pay to the Landlord a security deposit in the amount of $________ (________), to be held as security for the performance of the Tenant's obligations and applied toward the reasonable cleaning or repair of damage to the Premises until the expiry or earlier termination of this Lease, or in the event of default by the Tenant, as permitted by law.
4.2 The Tenant shall be liable to the Landlord at the expiry or termination of this Lease for all damage to the Premises, save and except for reasonable wear and tear.
4.3 The Landlord may hold the security deposit in a non-interest-bearing account, in which case no interest shall be payable to the Tenant. The Tenant shall not be entitled to apply the security deposit toward Rent.
4.4 In the event of a sale or assignment of the Landlord's interest, the security deposit shall be transferred to the purchaser or assignee, whereupon the Landlord shall be released from liability to the Tenant for its return.
4.5 Permitted deductions from the security deposit include, without limitation, unpaid Rent or utilities, late fees, cleaning, key replacement and removal of abandoned property.
§ 5. POSSESSION AND SURRENDER
5.1 The Tenant shall be entitled to possession on the Commencement Date and shall yield up possession to the Landlord on the last day of the Term, unless otherwise agreed in writing. Upon expiry or earlier termination, the Tenant shall remove all of its goods and effects and peaceably return the Premises in as good a condition as at the commencement of the Term, save and except for reasonable wear and tear.
§ 6. EXCLUSIVITY
6.1 The Landlord shall not, directly or indirectly, through any agent, employee or other representative, lease any other space within the building or property (other than the Premises), or permit the use or occupancy of any such space, whose primary business activity competes or may compete with the Tenant's Permitted Use, without the express written agreement of both Parties. The Landlord hereby grants the Tenant the exclusive right to conduct its Permitted Use within the property.
§ 7. PARKING
7.1 The Tenant shall be entitled to the use of ________ parking spaces for the parking of motor vehicles of the Tenant's patrons.
§ 8. STORAGE
8.1 The Tenant may store items of personal property at the Premises during the Term. The Landlord shall not be liable for any loss of or damage to such stored items.
§ 9. PROPERTY INSURANCE
9.1 Each of the Landlord and the Tenant shall maintain appropriate insurance for their respective interests in the Premises and property situated thereon. The Tenant's property insurance shall be in an amount not less than $________ (________). The Landlord shall be named as an additional insured on all such policies. The Tenant shall deliver to the Landlord evidence of such insurance issued by insurers reasonably satisfactory to the Landlord, and shall ensure the Landlord receives not less than thirty (30) days' advance written notice from the insurer prior to any cancellation or material change. The Tenant shall maintain such further insurance as the Landlord may reasonably require for the protection of the Landlord's interest.
§ 10. LIABILITY INSURANCE
10.1 The Tenant shall maintain commercial general liability insurance with respect to the Premises in an amount not less than $________ (________) per occurrence. The Tenant shall deliver to the Landlord evidence of such insurance issued by insurers reasonably satisfactory to the Landlord, and shall ensure the Landlord receives not less than thirty (30) days' advance written notice from the insurer prior to any cancellation or material change.
§ 11. MAINTENANCE
11.1 The Landlord shall maintain the Premises in a good state of repair throughout the Term, in accordance with applicable law.
§ 12. UTILITIES
12.1 Responsibility for utilities shall be as follows: ________.
§ 13. TAXES
13.1 Taxes relating to the Premises and their use shall be allocated as follows:
a) Realty Taxes. The Landlord shall pay all real property taxes and assessments levied against the Premises.
b) Other Taxes. The Landlord shall pay all personal property and business taxes and other charges levied against the Premises attributable to the Tenant's use, together with any sales, use or value-added taxes due in connection with the Rent, save as otherwise provided in § 3.4.
§ 14. TERMINATION UPON SALE OF PREMISES
14.1 Notwithstanding any other provision of this Lease, the Landlord may terminate this Lease upon ________ days' written notice to the Tenant that the Premises have been sold.
§ 15. DESTRUCTION OR EXPROPRIATION OF PREMISES
§ 16. DEFAULT AND REMEDIES
§ 17. LATE PAYMENTS
17.1 For any payment not received within one (1) day of its due date, the Tenant shall pay a flat late fee of $________, payable no later than with the Rent for the following month.
§ 18. QUIET ENJOYMENT
18.1 Provided the Tenant pays the Rent and performs its obligations, the Tenant shall peaceably hold and enjoy the Premises throughout the Term without interruption by the Landlord or any person lawfully claiming through the Landlord.
§ 19. OVER-HOLDING
19.1 If the Tenant remains in possession after the termination of this Lease (the "Over-holding Period") without the written consent of the Landlord, no tenancy or other right shall be created thereby, and the Tenant shall pay Rent during the Over-holding Period at a rate equal to one hundred and fifty percent (150%) of the Rent payable for the last rental period, prorated on a daily basis.
§ 20. LANDLORD ACCESS TO PREMISES
20.1 Subject to the Tenant's consent (not to be unreasonably withheld), the Landlord may enter the Premises to inspect, provide necessary services, or show the Premises to prospective purchasers, lenders, tenants or contractors. The Landlord assumes no liability for the care or supervision of the Premises. In an emergency, the Landlord may enter without prior consent, as permitted by law. During the last three (3) months of the Term or any renewal, the Landlord may access the Premises to display signs and show the Premises to prospective tenants.
§ 21. INDEMNITY
21.1 To the extent permitted by law, the Tenant shall indemnify, defend and hold harmless the Landlord from and against any and all losses, claims, liabilities and expenses, including reasonable legal fees, which the Landlord may suffer or incur in connection with the Tenant's possession, use or misuse of the Premises, except to the extent caused by the Landlord's own act, omission or negligence.
§ 22. DANGEROUS AND HAZARDOUS MATERIALS
22.1 The Tenant shall not keep on the Premises any article or thing of a dangerous, flammable or explosive nature that might unreasonably increase the risk of fire or explosion, or that a responsible insurer would consider hazardous, without the prior written consent of the Landlord and proof of adequate insurance. The Tenant shall comply with all applicable environmental laws and shall not cause or permit any contamination of the Premises.
§ 23. COMPLIANCE WITH LAWS
23.1 The Tenant shall promptly comply with all applicable laws, by-laws, ordinances, requirements and regulations of federal, provincial, municipal and other authorities, and of fire insurance underwriters, provided the Tenant shall not be required hereby to make alterations to the exterior or structure of the building.
§ 24. ASSIGNMENT AND SUBLETTING
24.1 The Tenant shall not assign this Lease, or sublet or grant any concession or licence to use the Premises or any part thereof, without the prior written consent of the Landlord, which consent shall not be unreasonably withheld. A consent to one assignment, subletting, concession or licence shall not be deemed a consent to any subsequent such transaction. Any assignment, subletting, concession or licence without such consent, or by operation of law, shall be void and shall, at the Landlord's option, terminate this Lease.
§ 25. ALTERATIONS AND IMPROVEMENTS
25.1 The Tenant shall make no alterations or improvements to the Premises without the prior written consent of the Landlord. Unless otherwise agreed in writing, all alterations and improvements made by the Tenant shall become the property of the Landlord and remain on the Premises upon expiry or earlier termination of this Lease.
§ 26. NON-DELIVERY OF POSSESSION
26.1 If the Landlord, through no fault of its own, cannot deliver possession of the Premises on the Commencement Date, the Landlord shall not be liable for any resulting damages, this Lease shall not be void or voidable, and Rent shall abate proportionately for the period during which the Tenant is unable to take possession. If possession cannot be delivered within a reasonable time, the Tenant may terminate this Lease upon written notice to the Landlord.
§ 27. DISPUTE RESOLUTION
27.1 In the event of any dispute arising under this Lease, the Parties shall first attempt to resolve the matter through a mutually agreed mediator.
27.2 The costs of the mediator shall be shared equally, and each Party shall cooperate in good faith toward a resolution.
27.3 The Parties shall allow the mediator thirty (30) days from the first meeting to facilitate a resolution before resorting to litigation or arbitration.
27.4 If the Parties are unable to resolve the dispute through mediation within thirty (30) days, either Party may bring legal action in a court of competent jurisdiction or refer the matter to arbitration, the decision of which shall be binding upon the Parties.
§ 28. NOTICES
28.1 Any notice under this Lease shall be in writing and delivered personally or sent by prepaid registered mail, addressed as follows:
LANDLORD:
________
TENANT:
________
28.2 Either Party may change its address by written notice. Notices mailed in accordance with this section shall be deemed received on the third (3rd) business day after posting.
§ 29. GOVERNING LAW
29.1 This Lease shall be governed by and construed in accordance with the laws of the Province of ________ and the laws of Canada applicable therein. The Parties attorn to the exclusive jurisdiction of the courts of the Province of ________, and to any other court of competent jurisdiction for the enforcement of a judgment of such courts.
§ 30. ENTIRE AGREEMENT
30.1 This Lease constitutes the entire agreement between the Parties and supersedes all prior promises, conditions, understandings or agreements, whether written or oral, relating to its subject matter. Any modification must be in writing and signed by both Parties.
§ 31. SEVERABILITY
31.1 If any provision of this Lease is held invalid or unenforceable, the remaining provisions shall continue in full force and effect to the fullest extent permitted by law.
§ 32. NO WAIVER
32.1 The failure of the Landlord to enforce strict performance of any provision shall not be construed as a waiver of its right to enforce that or any other provision at a later time.
§ 33. BINDING EFFECT
33.1 This Lease shall enure to the benefit of and be binding upon the Parties and their respective heirs, legal representatives, successors and permitted assigns.
33.2 Time shall be of the essence of this Lease.
IN WITNESS WHEREOF the Parties have duly executed this Lease as of the Effective Date.
LANDLORD
________
Per: _______________________________________
Name: ________
Title: ________
I have authority to bind the corporation.
Date: ________
Witness: _______________________________________
Name: ________
TENANT
________
Per: _______________________________________
Name: ________
Title: ________
I have authority to bind the corporation.
Date: ________
Witness: _______________________________________
Name: ________
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