The Minden Brief: Summer 2015 Newsletter - Recent Developments In Property Leasing

RECENT DEVELOPMENTS of IMPORTANCE IN PROPERTY LEASING

Distress Remedy – A Minefield

The right of distress allows a landlord, without any judicial process, to seize, take into possession, and sell the goods and chattels of its tenant to satisfy any unpaid rent. There are many technical rules when exercising the right to distrain and landlords need to be aware of their potential personal liability.

Generally speaking, a landlord will lose its right to distrain if any of the following occur: the tenant becomes insolvent and files a proposal under the Bankruptcy and Insolvency Act (or the tenant becomes bankrupt); the tenant surrenders possession of the premises and the landlord accepts; the landlord ends the lease; the landlord sues for unpaid rent and obtains judgment; the tenant pays the amount owing to the landlord or its agent; or a receiver is appointed by a court.