Commercial Lease Amendment Agreement

What is a Commercial Lease Amendment Agreement?

A lease amendment agreement is a document that amends an original lease. In other words, a lease amendment agreement is used when something needs to be changed in the original lease, or a section needs to be deleted.

The entire original lease agreement stays in effect except for the explicit clause that has been amended.

A Commercial Lease Amendment Agreement specifically changes some of the terms of a commercial lease. A commercial lease is used when a landlord (owner) permits a tenant (renter) to occupy a specific location or unit to do business, such as operate a retail store. For example, the landlord and tenant can agree to change the location from which the tenant operates.

What must a Lease Amendment Agreement contain?

The information to include in a lease amendment agreement includes:

• names and identifying information of the landlord and tenant;
• the section of the lease agreement being amended;
• the amendment to the section; and
• the start date of the amendment.

What are the different types of Lease Amendment Agreements?

The different types of lease amendment agreements include:

• Residential lease amendment: this is for tenants residing on leased property for the purpose of a living space, including an apartment or house. Residential leases are subject to rigorous legislation and contain many tenant rights. The legislation typically governs this relationship, and a unique board exists to address disputes between the landlord and tenant (the landloard and tenant board). This means that neither the landlord nor the tenant can bring an action into court if the dispute relates to anything within the powers of the board. Some of these statutory rights include rent control, eviction protection, and more.
• Commercial lease amendment: this is for business purposes, such as an office space, retail space, or industrial or warehouse space. These leases are not heavily regulated like residential leases and the landlord and tenant have extensive flexibility in drafting an agreement.

What is the most common type of Lease Amendment Agreement?

A lease amendment agreement is more commonly used by commercial landlords and tenants because the relationship is primarily governed by their contract whereas residential tenants have various statutory rights. Also, residential tenants usually become monthly tenants following the termination of an original lease. Commercial tenants, on the other hand, either renegotiate a new lease or must vacate the premises. Therefore, commercial landlords and tenants may frequently sign lease amendment agreements to extend the duration of the term.

What is not allowed in a Lease Amendment Agreement?

A lease amendment agreement cannot contain any clause violating the law.

Commercial lease are more flexible than residential leases and the landlord and tenant can negotiate all aspects of the lease, as long as it complies with the law.

For example, a landlord cannot charge late fees in excess of the rates under the Criminal Code (60%).

What are the prerequisites of a Lease Amendment Agreement?

To enter into a lease amendment agreement, an original commercial lease must have been signed and the original lease cannot be expired. If so, the landlord and tenant simply need to negotiate and sign a new lease. In other words, an amendment agreement only applies if the landlord and tenant have an existing commercial lease. Otherwise, there is no agreement to amend.

Who can enter into a Lease Amendment Agreement?

Only the landlord and tenant as indicated on the original lease may enter into a lease amendment agreement. The signatories to the agreement must be of majority age and not under a disability. The ages of majority are as follows:

• Alberta, Manitoba, Ontario, Prince Edward Island, Quebec, Saskatchewan: 18 years old.
• British Columbia, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Yukon: 19 years old.

What has to be done after a Lease Amendment Agreement is ready?

Once this document has been completed, it must be signed either electronically or physically. Then, the original lease must be attached before it is sent to the other party. The party sending it must keep a signed copy of the amendment along with the original lease. The amendment is not complete until both the landlord and the tenant have signed it.

Which documents should be attached to a Lease Amendment Agreement?

The original lease agreement must be attached to the lease amendment agreement along with every amendment made.

Which laws are applicable to a Lease Amendment Agreement?

Lease agreements are governed by contract law and landlord-tenant legislation. The following pieces of legislation apply to commercial leases:

• Ontario: Commercial Tenancies Act, RSO 1990, c L.7
• Alberta: Commercial Tenancies Protection Act, SA 2020, c C-19.5
• Manitoba: The Law of Property Act, CCSM c L90
• Saskatchewan: The Landlord and Tenant Act, RSS 1978, c L-6
• British Columbia: Commercial Tenancy Act, RSBC 1996, c 57
• New Brunswick: Landlord and Tenant Act, RSNB 1973, c L-1
• Prince Edward Island: Landlord and Tenant Act, RSPEI 1988, c L-4
• Yukon: Commercial Landlord and Tenant Act, RSY 2002, c 131
• Northwest Territories: Commercial Tenancies Act, RSNWT 1988, c C-10
• Nunavut: Commercial Tenancies Act, RSNWT (Nu) 1988, c C-10

How to modify the template?

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.