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Real Estate

All About Leasing in the Real Estate Law in Canada

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The commercial real estate law in Canada comprises of 4 basic components (1) leasing, (2) investment, (3) development, and (4) the financing. Many commercial real estate leasing transactions include leasing agent services in Canada. These leasing agents are registered and possess a valid licence under the provincial legislation. The landlords normally hire these registered leasing agents who have a valid licence for commercial real estate transactions. The agents assist the landlords or tenants in understanding the real estate market terms and conditions, availability of properties for the purpose of lease or sale, and above all on the what and how about the commercial real estate business. Contact Forum Properties for all necessary commercial real estate information and for the various assistance of real estate leasing agents.

In fact, the role of leasing agent is crucial in negotiating between the landowner or tenants and the real estate commercial houses. The process of negotiations often takes months in the cases of departure of the existing tenant or preparation of the premises for occupancy. Generally, the “binding offer” to lease is negotiated by the agents and the parties much before the formal lease. This is normally done either through the lawyer or without a lawyer.

The binding offer comprises the necessary terms and conditions which will be incorporated into the standard form of the commercial lease of the landlord. Based on these terms and conditions the landlord would prepare the standard form of lease. This terms and conditions would be incorporating all details including the provision of future amendments within the appropriate negotiating period.

While dealing with the taxes and fees, the landlord is supposed to bear the costs of the commissions of the agents both tenant as well as of the landlord. Besides the commissions, the provinces levy taxes on transactions as per their provincial law.

Any lease term in Ontario which exceeds 50 years including the renewal must pay a land transfer tax. In Toronto, municipal land transfer tax is levied for the lease of land. Both in Ontario and Toronto, the taxes are calculated on the existing land value. But Quebec has its own formula of calculating the land transfer tax which is levied if the term exceeds 40 years.

Similarly, the lease registration in British Columbia has the property transfer tax if the term exceeds 30 years. In some provinces, the tenant has the provision of registering the property transfer under federal government procedure and pay a nominal fee for the purpose. This involves the procedure of providing a notice ensuring the protection of the interests of the lease. The federal government as well as most of the provinces levy VAT which must be paid along with the land or property transfer taxes.

Clare Louise

The author Clare Louise

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