CONSULT WITH AN EXPERIENCED COMMERCIAL REAL ESTATE LAWYER TODAY!
From your initial intent to purchase to the drafting of commercial real estate contracts and lease agreements, it is important to work with a real estate solicitors familiar with all kinds of commercial property transactions.
From a business perspective, it’s no secret that managing your land and/or property portfolio can be challenging. From arranging to lease a new property to planning a new property acquisition or disposition, any commercial property lease or purchase in Canada needs to be undertaken with the utmost care and attention to detail.
The global COVID-19 outbreak has and will continue to affect all aspects and sectors of the Canadian commercial real estate industry including landlords and tenants under commercial leases, vendors and purchasers under real property purchase agreements, commercial mortgage lenders and borrowers, and owners.
Simply put, a commercial real estate lawyer is responsible for:
The Canada Emergency Commercial Rent Assistance (CECRA) program is a voluntary program to be administered by the Canada Mortgage and Housing Corporation (CMHC) in partnership with the provinces and territories. CECRA is intended to help streamline negotiations between qualifying commercial landlords and their tenants to assist the parties in reaching a mutually acceptable rent reduction agreement during the COVID-19 pandemic.
Restrictions on deferrals and evictions -
To participate in the program, the property owner must agree to reduce the tenant’s rent, rather than defer it, and may not take steps to recover the abatement at a later date. In addition, the landlord must agree to an eviction moratorium during the rent reduction period.
Participation by provinces and territories -
Each of the provinces and territories are partners in the program, with each government announcing details of its own participation separately. To date, it appears that the provinces and territories will follow the CMHC rules, with few if any exceptions. We will update this post regularly with additional information as it becomes available.
Both the commercial property owner and the tenant must meet certain eligibility tests.
Under the CMHC requirements, the property owner must own a property with eligible commercial tenants (including subtenants) and have declared rental income on its personal or corporate tax returns for 2018 and/or 2019. In addition, it must have entered (or be in the process of entering) into a rent reduction agreement for the months of April, May and June 2020 as described above. Finally, the rent reduction agreement must contain a moratorium on eviction during that period.While CMHC states that, to be eligible, the property owner must have a mortgage loan secured by the commercial real property occupied by one or more commercial tenants, it also indicates that an alternative mechanism will be implemented for those commercial properties that are not mortgaged. Details have not been released at this point but have been promised in the “near future”.Commercial units in mixed-use buildings are eligible for CECRA.
CMHC states that the tenant or subtenant must:
In addition to buying and selling new homes, re-sale residential properties, and condominiums, we also offer the following services:
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