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ARTICLE · 29 JUNE 2021

Commercial Leases During The COVID-19 Lockdown: Where Are We Headed?

McMillan LLP
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A year after the first province-wide shutdown, courts continue to hear disputes between commercial landlords and tenants over unpaid rent.

CanadaReal Estate and Construction

A year after the first province-wide shutdown, courts continue to hear disputes between commercial landlords and tenants over unpaid rent. As a result of stay-at-home orders and increased restrictions on non-essential business activity, many commercial tenants have struggled to pay their lease obligations. Questions have arisen about what landlords and tenants are permitted to do in these circumstances, particularly whether landlords can terminate leases and evict tenants for non-payment of rent.

Along with other measures to protect the Canadian economy, most provincial governments have enacted legislation preventing commercial landlords from terminating a commercial lease for non-payment of rent. Meanwhile, the Federal government has passed a series of bills intended to supplement income for commercial landlords and provide protection for commercial tenants.

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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