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ARTICLE · 31 OCTOBER 2011

Lease Priority, Attornment And Non­-Disturbance Explained

Blake, Cassels & Graydon LLP
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In establishing its premises at a new location and entering into a new lease, a tenant may invest a considerable amount of money for leasehold improvements. The new business location may also be viewed by the tenant as critical to its operations.

CanadaReal Estate and Construction
Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Copyright 2011, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Real Estate - Commercial Leasing, October 2011

Introduction

In establishing its premises at a new location and entering into a new lease, a tenant may invest a considerable amount of money for leasehold improvements. The new business location may also be viewed by the tenant as critical to its operations. However, if the tenant's landlord has previously mortgaged its property and subsequently defaults under its obligations to its lender, the tenant may face the risk of eviction and suffer significant disruption to its operations, as well as financial and business losses, even though the tenant has continually complied with its obligations contained in its lease.

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