commercial condo

Question 1

mixed-use condo

Answer 1

hybird mix-use condo - condo corporation can lease ground floor retailing/ second-floor units

Question 2

shared facilities

Answer 2

both access parking space in the underground lot (mixed use building) - one floor for commercial and the second one for offices

Question 3

declarant

Answer 3

it all begins with them the owner of the freehold

Question 4

declaration

Answer 4

condo constitution details how new corporation is legally organized and how the governance is structured

Question 5

description

Answer 5

architecture plan, structure plan

Question 6

registration

Answer 6

condo is created by registering the declaration

Question 7

condominium corporation index

Answer 7

condominium act require the land registrar maintain index of all registered condo ( in the land registration office)

Question 8

exclusive use common element

Answer 8

unit owner may have exclusive use of selected portion of the common element ( parking space, docking facilities, signage) - it is the responsibility of the condominium corporation

• you need board approval to make additions or alteration
• the owner will the agree to be responsible for insurance, liability and insurance

Question 9

exclusive use common element

Answer 9

unit owner may have exclusive use of selected portion of the common element ( parking space, docking facilities, signage) - it is the responsibility of the condominium corporation

• you need board approval to make additions or alteration
• the owner will the agree to be responsible for insurance, liability and insurance

Question 10

how commercial condo are managed –

Question 11

rights and obligation in a commercial tenancy

Answer 11

landlord can apply to the small claims court or the superior court of justice for rent related disputes

Question 12

what is correct regarding percentage lease?

Answer 12

anchor tenant- may pay a lower percentage rate because that particular retails draws consumer to the retail shopping centre ( they are given certain concession due to their drawing power)

Question 13

abbreviated wording

Answer 13

for lessee’s obligation to remit rent to the lessor - addressed under short form of leases act

Question 14

deposit relating to commercial tenancies act

Answer 14

no obligation to pay annual interest on commercial tenant security deposit

Question 15

leases regeneration can be complex

Answer 15

tenant loses any right leasehold improvement at the point of lease expiration

Question 16

the short form of lease act

Answer 16

the act provide abbreviation wording that can be used in lease

Question 17

if relevant building plans are unavailable

Answer 17

1-you can hire professional who specialize in measuring rentable area

2-have laser measured floor plans created by professional

3- contact surveyor for third party assistance

Question 18

signage

Answer 18

tenenant is responsible for the coast of installation and removal and must comply with municipal bylaws

Question 19

Gross lease

Answer 19

can include an escalation clause alolw for rent changes on increased operating costs

Question 20

commercial tenant rent

Answer 20

tenant cannot withhold rent, due to landlord failure to fulfill obligation under the lease but can take legal recourse

Question 21

in a typical community or regional shopping center lease

Answer 21

a site plan is usually attached to he lease identifying the specific premises being leased

Question 22

commercial tenant has month to month tenancy arrangement

Answer 22

the tenant can terminate the tenancy with one month notice

Question 23

confirmation of acceptance

Answer 23

is signed by the person who fianally accepts the offer as a binding agreement including all changes both typed and written

Question 24

rent increases are not regulated

Answer 24

unlike the residential tenancies act, the commercial tenancies act does not set restrictions relating to rent increases

Question 25

commerical lease and commercial tenancies act rules about changing locks

Answer 25

the landlord can change the locks on the 16th days after the rent was due

Question 26

what is head lease?

Answer 26

the original lease is referred to as head lease

Question 27

An agreement to lease

Answer 27

must set out all essential terms

Question 28

trade fixtures

Answer 28

if the tenant decides not to remove the trade fixtures then those fixtures become the property of the landlord

Question 29

what is the annual rent per square foot ?

Answer 29

min base rent + annual percentage rent + additional rent - value provided for tenant improvement / Rentable area

Question 30

what is the annual rent per square foot ?

Answer 30

min base rent + annual percentage rent + additional rent - value provided for tenant improvement / Rentable area

Question 31

update gross sales from tenant paying percentage

Answer 31

- to provide landlord with sales data assessing the effectiveness of advertising campaigns - to provide continuous check on retail tenant sales performance and possibility of tenant failure due to low sales

Question 32

moving to a larger location

Answer 32

if the lease did not include a continuous use clause, West end bakery could continue to pay the rent and leave the premises unoccupied for the duration of the lease

Question 33

pass - through in a commercial lease

Answer 33

apportions costs to the tenant ( it is an important landlord consideration in a commercial lease, while is it usually focused on operating expenses, landlord may include certain capital improvements ( which may prove costly from tenant perspective)

Question 34

advance tax payments

Answer 34

-commercial leases involve base and additional rents provided for advance payment to align with municipal tax payment date - this does affect the total monthly costs to tenants

Question 35

supplementary rent

Answer 35

in addition to base rent, supplementary rent may be charged to cover the tenant pro-rated share of operating costs ( could be connect to consumer price index ( CPI)

Question 36

min elements required in all leases

Answer 36

1- name of all parties 2- descriptions of the leased premises 3- rent 4- permitted use 5-commencement and expiration date 6- right and obligation of the parties

Question 37

gross lease

Answer 37

agreement in which the tenant pays fixed rent and the owner pays all operating expenses associated with the property

Question 38

net leases

Answer 38

three types of net leases single net lease- tenant pay base min rent + additional rent ( like property tax), the landlord pay the rest double net lease - Tenant pays base rent + additional rent ( like property tax, maintenance and insurance) , roof replacement, structural repairs and replacement, operating expenses are the landlord responsibility Triple net lease - Tenant pays base rent plus additional rent, which includes all of the expenses related to the operation of the complex plus roof replacement, structural repairs, and replacements. Triple net lease

Question 39

percentage lease

Answer 39

* Reporting of monthly sales figures to help the landlord receive monthly interim cheques for any percentage rent due without having to wait until the end of the year * A continuous reporting of sales levels of tenants that enable the landlord to calculate accurate percentage rents, and to monitor tenant success levels and risk of failures

Question 40

The basic components that should be addressed during lease renewal negotiations include the following

Answer 40

* Length of the renewal term can be established when negotiating the original lease. * Rental rate is generally negotiated based on comparable properties at the time of renewal. In the rare cases in which both parties are unable to agree on a rental price, the issue can be brought to arbitration per the Arbitration Act, if the lease permits arbitration. * Leasehold improvements are negotiable, but the tenant typically has no rights to the leasehold improvements as specified in the original lease.

Question 41

Blend and Extend

Answer 41

Blend and extend is a common practice that refers to renegotiating the terms of an existing lease before the end of the lease term, possibly with a new rental rate and/or increased or decreased area of the occupied space. In other words, the remaining term in an existing lease is extended and the current rental rate is “blended” with a newly agreed-upon rate.