Commercial Lease Disputes

Commercial Lease Disputes are governed by Ontario’s Commercial Tenancies Act (CTA) which outlines the relationship, rights and obligations between commercial landlords and tenants. Commercial lease disputes often arise between the seller and buyer of a commercial property or the owner of a commercial property or a contractor or subcontractor or landlord and tenant of a commercial property. It is to be noted however that a signed lease agreement may take precedence over the provisions of the CTA.

When you are a commercial landlord or tenant, it is highly recommended that you secure a legal advice to assist you and protect your rights and obligations. AJ LAW LLP may be able to provide legal assistance to ensure transactions being entered into are free from defects, and the terms and conditions of the lease agreement properly outlines the real intention of the parties.

Common lawsuits that can arise from commercial lease:

1. Claiming back deposits when sale does not complete: A deposit is an amount of money payable on the purchase of something as the first installment or as an agreement for a contract, commonly 5% or more of the purchase price. Disputes may arise in scenarios where the parties entered into a conditional sale and the conditions were not met. Buyers will usually only make an offer to purchase a residential property that is conditional upon either financing or a satisfactory home inspection. It may also be an instance where a buyer is unable to complete the transaction as they fail to obtain financing and such condition was either waived or not incorporated into the agreement. In such a situation, the seller may be entitled to keep the full deposit even if they end up selling the property for more to another buyer.
2. Removal or installation of fixtures and chattels as agreed upon: The term fixture implies any physical property which is permanently attached to a property such as overhead lights, cabinets, television mounts, faucets and so on. On the other hand, a chattel is called a property that is not attached to a home such a washing machines, dryers, fridges and so on. Sometimes, a seller may take fixtures and chattels with them when they move out even though the agreements say otherwise. Another conflict could arise when fixtures and chattels are not handed over or delivered in good condition. Agreements usually include a schedule containing seller’s warranties and representations.
3. Non-disclosure of property defects: Defects may be considered as either patent or those that are observable by the untrained eye during ordinary property inspection, or they can be latent, which are defects that inspection or ordinary vigilance cannot reasonably discover. Buyers are usually responsible for patent defects such as broken staircase or cracked wall since these are visually obvious and are not required to be disclosed by the seller. Latent defects such as flooding in the basement during heavy rainfall are usually the responsibility of the sellers if known to them.

AJ LAW LLP has a Filipino lawyer and licensed paralegal who can assist clients in all aspects of commercial real estate disputes. Seeking legal representation may be your best solution to protect your rights and responsibilities as a landlord or tenant. Avail of a free consultation with us and let a Filipino Lawyer and Paralegal at AJ Law LLP help you. Call us at +1 416 409-5991 or email us at info@ajlawpartners.ca.