A lease refers to a contract that is between the lessee (tenant) and the lessor (landlord) where they jointly decide the terms and conditions for the use of an asset. The lease outlines the terms of use of the asset to the lessee which is guaranteed by the lessor, in return for regular payments over a specified duration of time.
In a lease, the lessor retains the ownership of the asset for the time duration mentioned while the lessee gets the right of usage of the asset. The right to sublet the asset including property is usually decided by the parties and written down in the lease agreement.
Your Real Estate Lawyer will consult with you to understand your specific situation before moving on the lease agreement process. They will negotiate and draft a personalized lease agreement on behalf of the tenants and landlords.
Complex lease agreements may be needed as per the circumstance. Your Real Estate Lawyer can help you resolve any issues which may crop up between landlords and tenants. They will also support you in navigating the Residential Tenancies Act and the Commercial Tenancies Act of Ontario.
A lease agreement is implied to be in force if the parties conduct themselves as if the lease is in effect, even though it may not have been signed formally.
Types of Leases
Residential and Commercial are two different types of leases based on their nature and scope. The laws and regulations governing their operation are separate from each other. A lease can be one of the below:
- A fixed-term agreement, where the lease expires once the specified term (certain time period) ends. It can also be conditional.
- A periodic agreement, where the lease gets renewed on a weekly or monthly basis on the will of the parties to the contract. Termination of the lease is possible by either party without the imposition of any penalty.
Residential Lease Agreements
Residential lease agreements refer to written contracts between the tenants and landlord in which the property rights are transferred for a limited time duration. In Ontario, tenant and landlord responsibilities and rights are governed under the Residential Tenancies Act, 2006 (RTA).
Standard lease templates are in use from April 30, 2018, which need to be used by landlords of the majority of the residential rental units. This category of landlords includes property management companies and individual landlords. In a standard lease, the rights and responsibilities of tenants and landlords are presented in a simple and easy to understand manner to:
- Help renters and landlords understand their roles, rights and responsibilities
- Minimize unauthorized and illegal language, terms used in leases and reduce the usage of verbal tenancy agreements.
- Phase out the Landlord and Tenant Board hearings which are used to resolve disputes.
Commercial Lease Agreements
Your Commercial Real Estate Lawyer will draft and negotiate commercial lease agreements on your behalf that is customized to the requirements of the tenant and landlord for that particular transaction. Lease details and particulars are discussed with you whether it is for industrial, commercial or retail space.
In the commercial leasing process, the landlord and the tenant enter into an offer to lease or provide a letter of intent to lease. It includes the summary of the terms and conditions of the original lease which may be a gross or net lease. Many terms are noted here including the length of the term, conditions for extension or termination, right to transfer and much more. The offer to lease is not binding on the parties.
The offer to lease can include the provision where the tenant may agree to enter into the landlord’s standard lease. This is more favorable for the landlord and not so for the tenant as it can have financial implications for the later.
Standard leases are drafted in the format to protect the landlord’s legal rights. From a tenant’s perspective, it is advisable to enter into a formal lease agreement which is acceptable to the landlord and the tenant.
How We Can Help
At Nanda & Associate Lawyers, our experienced Real Estate lawyers understand your specific circumstances and provide tailored and customized solutions for each of them.
Our Mississauga Real Estate Lawyers are available for a consultation. Come and experience our quality legal counsel and personalized care we give to each client. We ensure prompt communication and a professional approach to achieve successful outcomes for you.
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