Canada Commercial Tenancy Agreement
Also known as: Commercial Lease Agreement · Business Lease · Commercial Lease
Generate a commercial tenancy agreement tailored to Canada law. Our AI incorporates Canada-specific statutory requirements, disclosure obligations, and legal standards into every clause.
Commercial Tenancy Agreement
Also called: Commercial Lease Agreement, Business Lease
Legal Requirements
Canada Legal Requirements
Key Canada statutes and obligations that apply to your commercial tenancy agreement.
Commercial leases in Canada are governed by provincial Commercial Tenancies Acts (Ontario CTA, BC Commercial Tenancy Act, etc.)
No standard lease form required — parties negotiate terms freely
REALPAC (Real Property Association of Canada) publishes model commercial lease forms used as industry standards
HST/GST applies to commercial rents (typically tenant's responsibility via additional rent clause)
Net, gross, and modified-gross lease structures common — specify clearly which expenses tenant bears
Personal guarantees from principals often required for new or small businesses
Restrictions & Key Considerations
Unlike residential tenancies, commercial tenants have limited statutory protections — contract terms govern
Ontario: commercial landlords have the right to distrain (seize goods) for unpaid rent under the Landlord and Tenant Act
No automatic right of renewal in most commercial leases — options to renew must be expressly negotiated
Assignment and subletting usually require landlord consent — not to be unreasonably withheld under many provincial Acts
FAQ
Canada Commercial Tenancy Agreement FAQ
Common questions about the commercial tenancy agreement under Canada law.
Is there a standard commercial lease form in Canada?
No mandatory form exists for commercial leases in Canada. The REALPAC model lease is widely used as a starting point for office and industrial properties. Retail leases often use ICSC (International Council of Shopping Centers) standard forms. All terms are ultimately negotiated between landlord and tenant.
What is a net lease in Canada?
In a net lease, the tenant pays base rent plus a proportionate share of operating expenses (taxes, insurance, maintenance). A 'triple net' (NNN or TMI) lease requires the tenant to pay base rent plus property taxes, maintenance, and insurance. This is the most common structure for industrial and retail properties.
Does GST/HST apply to commercial rent in Canada?
Yes. Commercial rent in Canada is generally subject to GST (5%) federally, plus provincial sales tax where applicable (HST in Ontario, BC, etc.). The lease should specify whether base rent is inclusive or exclusive of HST. GST/HST-registered tenants can typically recover these amounts as input tax credits.
What happens if a commercial tenant doesn't pay rent in Canada?
Provincial Commercial Tenancies Acts typically allow landlords to: (1) distrain (seize tenant's goods) for arrears, (2) pursue the tenant for damages, or (3) re-enter and terminate the lease. The right to distrain is being abolished in some provinces. A well-drafted lease specifies remedies and cure periods.
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Commercial Lease Agreement by Country
Laws vary significantly by country. Find the right form for your jurisdiction.
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