Integrity In Real Estate

In response to various scandals and as part of a continued global anti-corruption effort, the Canadian federal government responded with a new set of rules around integrity in procurement practices as well as sanctions for breach including termination of supply agreements and banishment. 

While no one can argue against virtue in governmental procurement practices, the application of these provisions in real estate particularly leases has not been without its unintended consequences and disruption.

While various industry groups have made and will continue to make representations for improvements, the introduction of the possibility of termination of a federal crown lease for breach of these provisions has imposed an important encumbrance on an otherwise highly desirable government covenant.