Lease Amendment Agreement

What is a Residential 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 Residential Lease Amendment Agreement specifically changes some of the terms of a residential lease. A residential lease is used when a landlord (owner) permits a tenant (renter) to live in a specific location or unit. The purpose of the lease is specficially designed to accomadate a living space, such as an apartment or a house.

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: it modifies a residential lease. 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 landlord 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.
• Commercial lease amendment: it modifies a commercial lease. 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.

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, such as:

• Habitability of premises: the unit must meet health and safety standards.
• Rent control: residential rent is regulated.
• Eviction protection: residential landlords need legal grounds to evict, such as non-payment of rent.
• Government tribunal: all disputes are handled by a government board (a landlord and tenant board)

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. For example, a residential lease amendment cannot contain a clause increasing the rent by a margin exceeding the allowable permitted annual increase.

In other words, if the rent being charged to the tenant is $2,000.00 per month and the law states that the landlord can only increase rent by 2% per year, this means that the rent the following year cannot exceed $2,040.00.

What are the prerequisites of this Agreement?

To enter into a lease amendment agreement, an original 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 residential 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 this 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 this 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 residential leases and may apply commercial leases:

• Ontario: Residential Tenancies Act, 2006, S.O. 2006, c. 17
• Alberta: Residential Tenancies Act, SA 2004, c R-17.1
• Manitoba: The Residential Tenancies Act, CCSM c R119
• Saskatchewan: Residential Tenancies Act, 2006, SS 2006, c R-22.0001
• British Columbia: Residential Tenancy Act, SBC 2002, c 78
• New Brunswick: Residential Tenancies Act, SNB 1975, c R-10.2 and the Landlord and Tenant Act, RSNB 1973, c L-1
• Nova Scotia: Residential Tenancies Act, RSNS 1989, c 401
• Prince Edward Island: Landlord and Tenant Act, RSPEI 1988, c L-4
• Yukon: Residential Landlord and Tenant Act, SY 2012, c 20
• Northwest Territories: Residential Tenancies Act, RSNWT 1988, c R-5
• Newfoundland and Labrador: Residential Tenancies Act, 2018, SNL 2018, c R-14.2
• Nunavut: Residential Tenancies Act, RSNWT (Nu) 1988, c R-5

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