The terms of the commercial contract are something that must be carefully considered by a tenant before signing. The best approach to prevent you from getting involved in a contractual or financial problem with an owner is to be very clear about the terms of the commercial contract. The law provides for landlords and tenants to enter into a payment plan for late payments resulting from the COVID 19 pandemic. Landlords would retain the right to dislodge a tenant or terminate a tenancy agreement if there have been certain breaches of a tenancy agreement, as long as the tenancy agreement identifies the particular offence as grounds for eviction or termination and the infringement is not due to the above reasons. Possible examples of significant offences are tenants who commit illegal acts, endanger persons or property, or the bankrupt tenant. In addition, the lessor can distribute or terminate if the tenant is late in payments in accordance with the payment plan required by law. Each landlord and tenant have current business debts such as salary slip, benefits, equipment rents, secured/unsecured debt financing, taxes and insurance payments, to name a few. To date, public subsidy programs have been announced, some government authorities have implemented deferral payment programs, such as property tax deferrals, and financial institutions are considering requests for credit deferrals or other credit payment arrangements. Of particular importance to business owners, the federal government has announced its intention to implement the Small Business Assistance Program for small businesses. This program will aim to provide credits, including tradable credits, to commercial property owners who, in turn, reduce or allocate rent to be paid by small entrepreneurs for April (retrospective), May and June.

Click here for more information on state aid programs. Devin is a partner based in our Calgary office and has a practice focused on commercial transactions and real estate law, including buy/sell transactions, financing, corporate business, condominiums, commerce and … The protection of commercial tenants, much as previously announced in British Columbia, could now happen in Alberta. See the Alberta government`s june 16, 2020 press release. On June 16, 2020, the Alberta government introduced Bill 23: the Commercial Tenancies Protection Act, which protects professional tenants from forced evictions and layoffs during the COVID-19 pandemic. This legislation and a future regulation (which is expected to be published within two weeks) will cover the period from 17 March 2020 to 31 August 2020. The bill expressly provides that it does not apply to forced evictions or leases that took place prior to first reading, which took place on June 16, 2020. The tenancy agreement is a contract between the landlord and the tenant before the tenant arrives. The agreement can be written, oral or tacit, but the written word is always better because it provides evidence if there is a problem. You are the best idea to speak to a commercial real estate lawyer who will be able to properly verify the terms of the lease and inform about any problems that could affect your business.

An experienced lawyer can also help you negotiate certain aspects of the contract to ensure that you have the best possible terms. In addition, landlords are prohibited from increasing rent and charging late fees and penalties for missed rents. It should be noted that all late fees, penalties or rent increases imposed by a commercial tenant between March 17, 2020 and August 31, 2020 must be reimbursed to the tenant.

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