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Commercial Lease Agreement

Home / Business Services / Legal Services / Legal Contracts / Commercial Lease Agreement

Step 1 of 27 - General Info

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  • General Info

  • We have our own corporate lawyer who will prepare the Commercial Lease. We have made it very simple and easy. All you need to do is, filling out this step by step form, pay and submit. Our specialist will review your submitted information, will contact you if anything is missing
  • Customized Lease
  •  Built for Alberta
    Different provinces have different rules and regulations. Your Commercial Lease will be customized for Alberta
  •  Built for British Columbia
    Different provinces have different rules and regulations. Your Commercial Lease will be customized for British Columbia.
  •  Built for Manitoba
    Different provinces have different rules and regulations. Your Commercial Lease will be customized for Manitoba
  •  Built for New Brunswick
    Different provinces have different rules and regulations. Your Commercial Lease will be customized for New Brunswick.
  •  Built for Newfoundland and Labrador
    Different provinces have different rules and regulations. Your Commercial Lease will be customized for Newfoundland and Labrador.
  •  Built for the Northwest Territories
    Different provinces/territories have different rules and regulations. Your Commercial Lease will be customized for the Northwest Territories.
  •  Built for Nova Scotia
    Different provinces have different rules and regulations. Your Commercial Lease will be customized for Nova Scotia.
  •  Built for Nunavut
    Different provinces/territories have different rules and regulations. Your Commercial Lease will be customized for Nunavut.
  •  Built for Ontario
    Different provinces have different rules and regulations. Your Commercial Lease will be customized for Ontario.
  •  Built for Prince Edward Island
    Different provinces have different rules and regulations. Your Commercial Lease will be customized for Prince Edward Island.
  •  Built for Saskatchewan
    Different provinces have different rules and regulations. Your Commercial Lease will be customized for Saskatchewan.
  •  Built for the Yukon Territory
    Different provinces/territories have different rules and regulations. Your Commercial Lease will be customized for the Yukon Territory.
  • Help and Support

  • What is the difference between the standard and comprehensive agreements?
    - The standard version of the commercial lease contains all the vital terms for creating a legally binding contract but does not give the option for revising the standard clauses. Most customers choose this option.
    - In contrast, the comprehensive version is a highly detailed and customizable lease agreement designed for those who need more control over the wording of the contract.
  • Primary Landlord Details

  • Second Landlord

  • Third Landlord

  • Fourth Landlord

  • Fifth landlord

  • Help and Support

  • How should I fill out the questions?
    Fill in the appropriate information at your own pace. You're not required to fill out everything at once. A blank space is generally provided in the form that can be filled in later if you are missing information about one of the parties. You may also come back to the question page to fill out the missing information at your leisure.
  • Primary Tenant Details

  • Second Tenant

  • Third Tenant

  • Fourth Tenant

  • Fifth Tenant

  • Help and Support

  • What is a operating name?
    The Operating Name is the name the tenant’s business uses in its advertising, sometimes called a "DBA" or "doing business as" name. The tenant will not be allowed to carry on business under any other name.
  • Guarantor

  • Guarantor Details

  • Help and Support

  • What is a guarantor?
    A guarantor agrees to pay the landlord directly for any losses should the tenant fail to pay rent or otherwise breach the lease agreement.
  • What is a Personal Guarantee?
    - A Personal Guarantee is a legally binding promise made by an individual to personally repay any debts the tenant defaults on.
    - we offer a Personal Guarantee form which can be completed after you have finished your Commercial Lease.
  • What is an Indemnity Agreement?
    - An Indemnity Agreement is a separate contract where the guarantor agrees to protect the landlord against future losses if the tenant defaults.
    -We offer an Indemnity Agreement form which can be completed after you have finished your Commercial Lease.
  • What is the difference between a guarantee and an indemnity?
    - The liability of the guarantor is no more nor less than the liability of the person being guaranteed and only becomes effective once that person has failed in his obligations. So there is a need to look first to that person. There can be certain formalities such as being in writing for a guarantee to be enforceable.
    - An indemnity provides that the indemnifier will not lose money on the deal in question. There is no need to “look first” to anyone else to make good the debt or obligation. The landlord will always prefer an indemnity over a guarantee.
  • Leased Property

  • Help and Support

  • When should I include additional details about the property?
    Generally, it is not legally necessary to describe the property using more than the property address. However, providing additional details can reduce the potential for disputes by further clarifying the boundaries of the property.
  • What is a legal description?
    - The legal description refers to how the property is identified in a real estate transaction.
    - You can find this description in the deed, mortgage, or other purchase document. You can also obtain the legal description from a county recorder, land titles office, tax assessor, or other similar official.
  • Permitted Use

  • Parking

  • Help and Support

  • Why is it important to describe the permitted use?
    Describing the permitted use helps prevent disputes and confusion over what is considered acceptable use of the property. It also allows the landlord to maintain a proper mix of businesses.
  • Who is considered a direct competitor?
    A direct competitor is someone who operates as its principal business a similar permitted use of the property that the tenant has received permission for.
  • Lease Term

  • MM slash DD slash YYYY
  • MM slash DD slash YYYY
  • MM slash DD slash YYYY
  • Help and Support

  • The different types of lease terms : Fixed End Date??
    A lease with a fixed end date gives certainty of term for both the landlord and the tenant. It specifies the exact day the tenancy will end. The advantage here is that neither party has to give notice to terminate the lease, it simply ends on the specified date. In a fixed end date lease, the landlord cannot increase the rent, or change any other terms of the lease unless they specifically reserve the right in the lease, and the tenant agrees to the changes. If the tenant remains past the specified date the landlord can either: (a) accept rental payments and have the lease continue as a month-to-month tenancy with the same rules as the expired fixed end date lease; (b) sign a new lease; or (c) start eviction proceedings against the tenant.
  • The different types of lease terms: Periodic/Automatic Renewal (no set end date)?
    A periodic tenancy (a weekly/monthly/yearly lease with automatic renewal) will continue until one of the parties terminates the lease. To terminate the lease, the landlord or tenant must give notice of their intention to terminate as specified by statute. A landlord can usually raise the rent, or change the terms of the lease in these types of agreements by providing proper notice as required by statute. At the end of the notice period the tenant must move out or the landlord can start eviction proceedings against the tenant
  • What is an automatically renewing lease?
    An automatically renewing lease will renew after each rental period until one party chooses to end the lease by giving written notice.
  • What is early possession and why is it used?
    A tenant might be given possession of the property before the lease start date where the tenant needs to perform leasehold improvements.
  • Rent Details

  • Specifying operating costs will allow you to receive additional charges, such as cleaning, security, repairs, etc., on top of the standard gross rent payment.

  • The tenant will be responsible for all operating costs such as cleaning, security, repairs, etc., on top of the standard gross rent payment.

  • In order to state the rent by square metre, you must also have answered the following questions in the "Leased Property" page under the "Property" section. You must have selected to further describe the property. You must have selected yes to "Specify the square footage?" and you must have entered an area greater than zero.

  • Tenant's share of all leasable areas in building is typically used in a triple net lease.

  • e.g. Tenant will pay all metered utilities and 30% of remaining operating costs
  • Help and Support

  • What is a Gross Lease?
    A Gross Lease is where the total rent is a fixed base rent without any additional costs (such as operating costs) that may be charged to the tenant.
  • What is a Net Lease?
    A Net Lease is where the tenant is responsible for the fixed base rent plus some additional costs, such as certain operating costs or a portion of all the landlord’s operating costs for the building and common areas.
  • What are operating costs?
    Operating costs are the routine day-to-day costs of doing business, such as utilities, maintenance, insurance, and cleaning.
  • Rent Payment

  • Rent Increase and Late Payments

  • Utilities and Other Expenses

  • Who is responsible for paying the following utilities?
  • Help and Support

  • How should the different costs be listed?
    Taxes and insurance should not be dealt with in this Utility section. They are dealt with later in the questions. Operating costs such as security, snow removal and collection of garbage are typically covered where the rent is a base rent plus "all operating costs". If you want to specifically name them with such rent, you will have to add them as other expenses below.
  • What is "Tenant Pays Direct" for utilities?
    The tenant is billed directly and pays this expense directly to the provider of that utility. This expense would be in addition to any amounts paid to the landlord for rent.
  • What is "Tenant Pays Landlord" for utilities?
    The tenant pays their share to the landlord who then pays the amount to the supplier of that utility. If the tenant doesn't have a separate meter, it just pays its proportionate share of the total cost. This expense would be in addition to any amounts paid to the landlord for rent.
  • What is "Landlord Pays" for utilities?
    The landlord pays any utility charges to the supplier of the utility and the tenant is not directly responsible for this expense.
  • Maintenance

  • Maintenance that the tenant is to perform or pay for:
  • Operating Costs

  • Who is responsible for paying the following operating costs for the property?
  • Help and Support

  • What is a Gross Lease?
    A Gross Lease is where the total rent is a fixed base rent without any additional costs (such as operating costs) that may be charged to the tenant.
  • What is "Tenant Pays Direct"?
    The tenant is billed directly and pays theoperating costs directly to the provider of that service. This expense would be in addition to any amounts paid to the landlord for rent.
  • What is "Tenant Pays Landlord"?
    The tenant pays their proportionate share to the landlord who then provides that service or pays the amount to the supplier of that service. This cost would be in addition to any amounts paid to the landlord for rent.
  • What is "Landlord Pays"?
    The landlord provides this service or pays any costs to the supplier of this service and the tenant is not directly responsible for this expense.
  • Deposit Details

  • e.g. First plus last two instalments of gross rent or last two instalments of gross rent.
  • Help and Support

  • What is prepaid rent?
    - Prepaid rent is a rent payment (or payments) made to the landlord at the outset of the lease, which the landlord holds as security for the applicable rent payments.
    - This is different from a security deposit, which is a payment made to the landlord at the outset of the lease, which the landlord holds as security for damages other than rent.
  • What is a security deposit?
    - A security deposit is a refundable sum of money the tenant pays to the landlord in order to guarantee their lease obligations will be fulfilled.
    - The landlord may use the deposit to cover damage caused by the tenant (normal wear and tear excluded) or failure to pay rent.
  • What is an inspection report?
    An inspection report is a written record of the condition of the property at the time the tenant takes possession. When a second inspection report is used at the end of the lease, it is used as a comparison tool to determine if the tenant caused any damage during the lease period.
  • Insurance

  • Who is responsible for obtaining and paying for the following insurance?
  • Insurance Provisions

  • Would you like to customize the standard insurance clauses?
  • Help and Support

  • What is the difference between Standard Clause and Customize Wording?
    For both the landlord and the tenant, select "Standard Clause" to have the standard insurance clauses. If you wish to modify some of the terms of the standard clause, select "Customize Wording" to see the wording of the standard clauses, and you may then edit the paragraph in the text box to change the terms to suit your needs.
  • Landlord Improvements

  • Primary Landlord Improvement

  • e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.
  • Second Landlord Improvement

  • e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.
  • Third Landlord Improvement

  • e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.
  • Fourth Landlord Improvement

  • e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.
  • Fifth Landlord Improvement

  • e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.
  • Help and Support

  • What is considered a landlord improvement?
    A landlord improvement is a leasehold improvement completed by the landlord. It is any expense which contributes to the permanent improvement of the leased property.
  • Personal Property Provided by Landlord

  • Primary Chattel Details

  • e.g. Electrolux dishwasher serial number AV3444
  • Second Chattel

  • e.g. Electrolux dishwasher serial number AV3444
  • Third Chattel

  • e.g. Electrolux dishwasher serial number AV3444
  • Fourth Chattel

  • e.g. Electrolux dishwasher serial number AV3444
  • Fifth Chattel

  • e.g. Electrolux dishwasher serial number AV3444
  • Help and Support

  • What is movable property (chattel)?
    - Any personal property that is not significantly attached to the property and can be moved without causing damage is considered to be chattel (movable property).
    - For example: lamps, curtains, microwaves, desks, personal computers, etc.
  • Tenant Improvements

  • Primary Tenant Improvement

  • e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to the materials to be used.
  • Second Tenant Improvement

  • e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to the materials to be used.
  • Third Tenant Improvement

  • e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to the materials to be used.
  • Fourth Tenant Improvement

  • e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to the materials to be used.
  • Fifth Tenant Improvement

  • e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to the materials to be used.
  • Help and Support

  • What is a tenant improvement?
    A tenant improvement is a leasehold improvement completed by the tenant. It is any expense which contributes to the permanent improvement of the leased property.
  • Movable Property Provided by Tenant

  • Primary Chattel Details

  • e.g. Electrolux dishwasher serial number AV3444.
  • Second Chattel

  • e.g. Electrolux dishwasher serial number AV3444.
  • Third Chattel

  • e.g. Electrolux dishwasher serial number AV3444.
  • Fourth Chattel

  • e.g. Electrolux dishwasher serial number AV3444.
  • Fourth Chattel

  • e.g. Electrolux dishwasher serial number AV3444.
  • Help and Support

  • What is movable property (chattel)?
    - Any personal property that is not significantly attached to the property and can be moved without causing damage is considered to be chattel (movable property).
    - For example: lamps, curtains, microwaves, desks, personal computers, etc.
  • Signing Incentives

  • e.g. $500 improvement allowance for painting
  • Help and Support

  • What is a signing bonus?
    A signing bonus is any incentive given to the tenant in exchange for entering the lease agreement. A common example is a period of free rent.
  • What is gross rent?
    Gross rent is the minimum fixed amount the tenant is charged each month. It does not include any additional variable charges such as operating costs.
  • Customize Standard Clauses

  • Help and Support

  • When should I customize a standard clause?
    Revising a standard clause is completely optional and should be done if you have a specific need or requirement that is not addressed by the standard clause.
  • Additional Clauses (Optional)

  • You can add additional clauses if there is some information, details, terms or restrictions not present in the lease but you wish to include. In most leases, this is not necessary.

  • Help and Support

  • When should I include an additional clause?
    You should include an additional clause if there are any terms or issues unique to your situation that have not been addressed in the questionnaire.
  • How should I write my clause?
    In order to reduce confusion, write your clauses with plain language and limit them to one paragraph in length. Also, use any predefined terms such as Tenant, Property, Landlord, etc. in your clauses.
  • Required Notice before Evicting Tenant

  • How many days written notice is the landlord required to give before evicting the tenant for the following breaches:
  • Help and Support

  • What is written notice?
    A written notice is used to inform the other party of any significant changes to the terms of the lease, such as an eviction notice or increase in rent.
  • Miscellaneous

  • Help and Support

  • What does it mean to assign or sublease?
    - If a tenant assigns the lease with the landlord’s consent, all of the tenant’s rights are transferred to a third party for the remainder of the lease term.
    - In contrast, the tenant can sublease its right to use all, or part, of the property to a third party, for all or only a portion of the remaining time in the lease. The original tenant would still retain some rights under the lease.
  • Option to Purchase

  • e.g. The Leased Premises plus all equipment and chattel from the Landlord.
  • MM slash DD slash YYYY
  • MM slash DD slash YYYY
  • Typically, the parties need at least 45 days to properly review and exercise the documents.

  • Help and Support

  • What is an option to purchase?
    An option to purchase is an option that is given to a tenant to purchase the property at a certain price during a certain period of time. The tenant may also have to pay an option fee.
  • Signing Details

  • MM slash DD slash YYYY
  • Help and Support

  • Who should sign the lease?
    Both the Landlord and the Tenant, and any guarantor, if applicable, should sign the lease. Having witnesses to the parties' signatures provides greater evidence that the parties entered into the lease.
  • Final Check: Please Review Carefully

  • {all_fields}
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