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Do you understand your commercial lease agreement?
Disclaimer: This article on commercial lease agreement in Ontario is intended for the purposes of providing information only and is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.
Our office has been receiving more and more inquiries recently relating to commercial leasing disputes. This is to be expected to some extent – after all, we are in a recession – and we want to make sure that all of our clients are aware of their rights and responsibilities when it comes to their leases.
Of course, every situation and lease is unique. If you would like to discuss your lease, please get in touch with our office as soon as possible. We are well-versed in commercial tenant law, and we can provide you with advice and guidance on how to proceed.
Your Commerical Lease Agreement in Ontario
Many landlords reach out to us because they are having significant difficulties with their tenants, such as their tenants defaulting on rent or not following the terms of their lease. What are your options?
Well, what does your lease say? Generally speaking, your lease is going to be your ground zero. If you have a well-prepared lease, you have more options. On the other hand, if you do not have a strongly worded, clear, and enforceable lease, you have fewer options.
The reality is that there are not a lot of protections under common law or in the legislation, specifically the Commercial Tenancies Act. Your lease is your best form of protection. We cannot overstate it enough: if you are not sure if your lease will protect you from a difficult tenant, you do not want to wait until there is an issue to find out.
Most savvy commercial landlords have an exceedingly good lease that gives them all the rights and “hold the cards,” so to speak. So what does that mean for tenants?
Signing a commercial lease as a tenant
You may be so excited to find the perfect space for your growing business that you are ready to sign anything. However, you need to ensure that the terms of the lease protect you and your business as much as possible.
You have rights as a tenant, but if you sign away those rights when you sign your lease, then you cannot avail yourself of the remedies provided for in the Commercial Tenancies Act. You must understand what you are signing and the lease must be able to also serve your interests.
That is where we come in. Before you sign your rights away, talk to our team. Too often, we see great businesses with their hands tied by a landlord-provided lease, and we do not want that for you. We can help you understand what the terms really mean and negotiate the terms that will hold your business back.
Protecting your interests with Beeksma Law
At Beeksma Law, our comprehensive experience covers both sides of the table. For landlords, we can help with drafting and enforcing your leases. For tenants, our experience helps to ensure that your rights are protected while you sign a lease.
We believe in empowering our clients. When you are armed with knowledge, you can make informed decisions that are in the best interests of your business. We clearly explain the law and ensure you understand what is at stake before signing on the dotted line. Book a call with our team today – we are happy to hear from you!
Navigating Construction Liens in Ontario
Disclaimer: This article on Navigating Construction Liens in Ontario is intended for the purposes of providing information only. It is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.
Construction liens are on the rise in 2023. As we mentioned in an earlier article, this is to be expected as litigation will increase during economic uncertainty. This also extends to construction liens. The good news is that you can protect yourself and your business by understanding:
- what a lien is,
- how it works, and
- when to act before the situation gets out of control.
As with all business matters, protecting yourself comes down to two actions: understanding your rights and working with someone to help you both prevent and react to a lien.
What are construction liens?
A construction lien is a legal claim that one party registers against a property that is undergoing construction or renovation. It’s a form of security for payment that ensures that you pay the contractors and subcontractors for the work and the materials supplied. The lien gives the claimant the right to sell the property to recover the money owed to them.
The Ontario’s Construction Act governs construction liens. It sets out the rules and procedures for registering and enforcing liens in Ontario. The Act applies to all construction projects, whether they’re residential or commercial and whether they’re new builds or renovations.
How do construction liens work in Ontario
A construction lien is a powerful tool that can have serious consequences for both property owners and contractors. Here’s how it works:
- A contractor or subcontractor who has provided services or materials on a construction project and has not been paid can register a lien against the property.
- The claimant must give notice of the lien to the property owner and other interested parties, such as the mortgage lender.
The lien must be preserved (by registering it on title or providing a notice of lien) within a specific timeframe. That timeframe is now 60 days after the last day of work or supply of materials. It was previously 45 days, but this changed as of October 1, 2019. Once a party registers a lien, the property owner cannot sell or mortgage the property until the lien is resolved.
The claimant (the person who registered the lien) must “perfect” the lien within 150 days of the last day of work or supply of materials. Perfecting the lien means commencing legal action to enforce the lien.
Protecting yourself as a contractor
As a contractor or subcontractor, it’s important to protect yourself from non-payment.
One of the best ways to protect yourself is to make sure that all contracts are in place before starting any work. The contract should clearly define the scope of the project, payment terms, deadlines and other relevant details, such as who owns any materials provided by the contractor.
Having an enforceable contract in place will help avoid disputes down the line if there is ever an issue with payment. It’s also important that you make all payments on time according to the schedule in your contract to minimize any potential delays or issues further down the line.
It’s important that you keep careful records. If you find you’re having difficulty collecting payment from a client or are getting a run-around, you will be ready to register a lien against the property owner. You will also need to be organized when it comes to ensuring that you register within 60 days. The courts will hold to that deadline, so make sure you do everything necessary to ensure you register your lien in a timely manner.
Protecting yourself as a property owner
If someone registers a lien against your property, it is a serious issue and can have a major impact on your ability to sell or mortgage the property. Outstanding liens delay a project, or, even more seriously, financial institutions may even freeze loans or lines of credit.
The only remedy that you, as a homeowner, have against a construction lien relates to the work done. Did the contractor complete the requested work? If the contractor did not complete the work, then you may have grounds to dispute the lien.
It’s important to note that the standard is not whether or not the contractor completed the work to your standards. It is whether or not they did the work under the contract to the level of a “reasonable contractor”.
You can also include in your contract a “holdback”. This means that you can withhold a specified amount of funds from the contractor until the lien has expired or been released. It is important to consider this option as it may give you some protection against construction liens in the future. For example, if a subcontractor registers a lien for non-payment by the contractor, you can use the funds in your holdback to cover part or all of that subcontractor’s claim.
Of course, always make sure that you do your research and hire a reputable contractor before commencing any construction project.
Dealing with construction liens: Don’t wait!
As with most legal matters, the more proactive you are, the better. Whether you are disputing work done to your home or waiting for payment as a contractor, do not wait! Contact us right away to ensure we can resolve it in a timely and cost-effective manner.
Whether you are a contractor or property owner, understanding construction liens and how they work is important in order to protect yourself from potential financial losses. At Beeksma Law, we help our clients deal with construction lien matters and can provide you with the legal advice that you need. Contact us today for more information. ?
Do I need an estate litigation lawyer
Disclaimer: This article on choosing an estate litigation lawyer is intended for the purposes of providing information only and is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.
Estate law is more than preparing a will or settling an estate after the death of a loved one. There is also the litigation side of estate law. This article is designed to help you understand if you need to pursue estate litigation and if so, what that would look like.
At Beeksma Law, we practice in a variety of areas, including estate litigation. We understand that disputes involving estates can be unquestionably difficult and emotional. We provide guidance to help our clients navigate these complicated cases, so they are able to make the best decisions for their families.
Firstly, a note for those planning their estate.
Preventing Estate Litigation
To begin with, if you are planning your estate, it is important to take steps to prevent future disputes. This includes ensuring that your will is clear and properly drawn with the help of an estate lawyer, that all assets are properly allocated, and that executors and trustees know what is expected of them. With proper planning, you can be more confident that your executor will follow your wishes and avoid disputes.
What is estate litigation?
Simply put, estate litigation is when someone seeks legal action because of a dispute involving the management, control and distribution of property within an estate.
Let’s consider some examples of when someone may want to pursue estate litigation.
- Challenging or contesting a will
- Disputes related to how the estate executor carries out their duties
- Disputes related to how much a beneficiary receives from an estate or how much the estate is worth
- Issues related to how a power of attorney is being used
- Disputes between co-executors
- Disputes between co-attorneys of a power of attorney
- Disagreements between beneficiaries
- Disputes related to compensation for the estate trustee
- Guardianship and incompetency disputes
- Disputes that arise when there is no valid will
If you think you may need to pursue estate litigation, discuss this with an estate litigation lawyer immediately. In Ontario, estate litigation is time-sensitive. You must file a claim within two years after you knew or ought to have known that there was an issue. Generally, the legal standard is that the time limit begins when a “reasonable person” would know there was a problem.
Litigating an estate claim
Let’s very broadly outline how the process works if you need to litigate an estate claim. At any point, either side can file motions requesting that the judge make an order on a certain issue.
First, one party files a claim, along with any affidavits and evidence to support those claims. Then, the respondent responds to the claim, which includes their own affidavits and evidence. The applicant may or may not reply to the respondent.
Thereafter, each party cross-examine the other under oath about the materials, as well as any affidavits that they have filed.
Mediation is mandatory in Ontario. Mediation is where a neutral third party helps the parties come to an agreement. However, if this is unsuccessful, the case goes to trial, and both sides present their evidence and arguments to a judge. The judge will make a decision and issue an order that the parties must abide by.
Resolving an estate dispute without going to trial
It’s important to acknowledge that estate disputes are highly emotionally charged. Beyond the legal issues involved, grief sometimes makes people act irrationally or want to right wrongs that have nothing to do with the facts being disputed. We understand that and therefore work hard to help our clients move forward in a healthy manner while protecting their legal rights.
Litigation is simply never the best option. Litigation is time-consuming, difficult and expensive. It does not allow you to move forward in handling the estate or putting the dispute behind you. In many instances, mediation or negotiation resolves any estate disputes.
Understanding Estate Litigation With Beeksma Law
At Beeksma Law, we understand estate litigation and how to handle it in a respectful way. With extensive experience litigating estates, we are strategic advocates when it comes to protecting your legal rights.
Book a call with our team today for your complimentary consultation.
What to Expect When Someone You Love Dies
Disclaimer: This article on losing a loved one and estate law in Ontario is intended for the purposes of providing information only and is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.
Dealing with the death of a loved one is difficult, and if you are going through that, we extend our condolences. While you are bearing your grief, you may also have to understand the legalities of what comes next.
We believe in providing our readers with comprehensive and understandable information, so in this article, we will provide an overview of what to expect when a loved one dies in various circumstances. Of course, your situation will be unique, and we encourage you to discuss the specifics with our team.
What to Expect When There is No Will
The first thing you want to do when your loved one passes away is to locate their will. But what if the deceased had never prepared a will?
In estate law, if the deceased did not have a will, they are said to have died intestate. This means that their assets will be distributed according to the provisions set out in the Succession Law Reform Act.
If a person dies with a spouse and no children, then their spouse inherits the entire estate. However, if there are children, the spouse inherits the first $200,000, with the remainder split equally. (NOTE: When a married person dies without a will, the surviving spouse can claim either:
- half of the net family property (as per the Family Law Act); or
- claim their entitlement under the Succession Law Reform Act.)
If there are children, but no spouse, then the children divide the estate equally.
The division of an estate can get much more complicated when there is no spouse or children. In that instance, it will go to the parents. In the absence of parents, it will go to any siblings (with nieces and nephews receiving their parent’s share if that sibling has passed away.)
From there, the courts divide the estate amongst grandparents, aunts, uncles, cousins, and so on. If no relatives can be located, the estate will go to the Crown.
You must probate the estate and there will be considerable expenses in doing so. This highlights the importance of having an estate plan in place and updating that estate plan on a regular basis as your life changes.
What to Expect As the Executor
As we have previously noted, the first thing you want to do when your loved one passes away is to locate their will. If they had a will, then they would have likely named an executor in that document. In the event that they have not, you can apply to the courts
The role of the executor is to settle the estate according to the instructions set out in the will. It also includes dealing with any debts and liabilities that the deceased may have had.
If there is no will, then the role of the executor is to follow the intestacy rules as set out in the Succession Law Reform Act.
The role of executor can be a daunting one. As we have noted, it is a significant responsibility and one that requires much of your time and energy. There is a reason that lawyers commonly call it the “executor’s year”. This is not something that takes mere weeks or months.
Of course, you do not have to do it alone. Surrounding yourself with sound advice from experienced professionals means that you will be able to navigate this process with greater confidence.
What to Expect As a Beneficiary
If you are named as a beneficiary in someone’s will, you can expect to receive your inheritance as soon as the executor can release it. Again, this is not something that happens overnight and it may move slower than you had thought.
The role of the executor is to pay all debts and liabilities of the deceased before any assets are distributed. This could include funeral expenses, taxes, and so on.
Once the executor has paid any debts, he or she will then move to distribute the assets according to the instructions set out in the will, withholding some of the estate to account for any further taxes levied by the CRA.
As a beneficiary, you do not have much say in how the estate is distributed or how long it takes for you to receive your share. This is all up to the executor. However, if you feel that the executor is not fulfilling their duties or if there is some issue with the will itself, then you can seek a remedy from the courts.
You also have the right to be informed about the status of the estate, such as when the executor applies for probate.
What to Expect: Compassionate Legal Advice During Your Most Difficult Period
At times, the death of a loved one can be sudden and unexpected. Other times, it may be the culmination of a long and difficult battle with illness. No matter the circumstances, losing someone you love is always going to be a difficult experience.
The last thing you want to deal with during this already tough period is managing complex estate law issues. Fortunately, you don’t have to go through this process alone. The team at Beeskma Law has extensive experience helping executors settle wills and estates, as well as helping you to set up an estate plan before you need it.
We understand that this is a difficult and emotional time for you and we will compassionately guide you through every step of the process. Contact us today to schedule a free consultation.
The Biggest Commercial Lease Mistakes You Need to Avoid
Disclaimer: This article on Commercial Lease Mistakes is intended for the purposes of providing information only and is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.
Your business is growing and it’s time to move out of your garage, home office, or dining room table. It’s time to find that special place that will help you take your business to the next level. Congratulations!
However, more is involved that finding a realtor and thinking about square footage. No, you need to make sure that your commercial lease serves you well and protects your interests. (For a high-level view of what your commercial lease may include, check out this previous article)
In this article, we will talk about the dangers of signing a bad commercial lease, as well as specific mistakes that you can avoid.
The Cost of Signing a “Bad” Commercial Lease
Commercial leases can be complex, and if you’re not careful, you could end up signing a bad one. A bad commercial lease can cost you thousands of dollars in rent, repairs, and other expenses. It can also tie you to a property that’s not suitable for your business.
One of our clients recently found herself in that very situation. Not only was she faced with the prospect of having committed to a property that she could not use for her business, but she was still obligated to pay rent on it!
We want to help you avoid making the same mistakes our client did. That is why we’ve put together a list of the biggest commercial lease mistakes to avoid.
Mistake #1 – Failing to Negotiate Your Commercial Lease
One of the biggest mistakes that tenants can make is simply failing to negotiate their lease terms. Remember, once you enter into a lease agreement, there is simply not a whole lot that can be done to change the terms – so it’s important to get everything in writing upfront.
Mistake #2 – Assuming that “Standard Terms” are Fair
In many instances, “standard terms” tend to favor landlords more so than tenants. As such, it’s important to have a lawyer or experienced commercial leasing agent review your lease agreement before putting pen to paper.
Mistake #3 – Not Understanding Your Commercial Lease
It is important to clearly understand any agreement that you sign. However, this is especially true when it comes to a commercial lease. If there is anything in the lease that you do not understand, be sure to ask questions and get clarification before signing.
Be sure to carefully review the language regarding operating expenses in your lease agreement. In some cases, tenants may be responsible for a portion of these costs. That is why it’s important to clearly understand what you will and will not be responsible for.
Mistake #4 – Rushing into a Decision
When signing a commercial lease, it’s important to take your time and carefully consider all your options. Once you sign a lease, you will be legally obligated to uphold your end of the agreement. So, be sure that you are fully committed before putting pen to paper.
Mistake #5 – Not Talking to a Real Estate Lawyer
You may feel like it is an unnecessary expense. However, it always a good idea to have a real estate lawyer review your commercial lease agreement before signing. They will be able to identify any potential red flags and help you negotiate more favorable terms.
Of course, you don’t want just any real estate lawyer. You want an experienced commercial lease lawyer who knows the ins and outs of commercial leasing. You want a team with litigation experience writing your contracts. That experience means they have seen how things can go wrong and how to help you avoid those same traps.
In short, you want a real estate law team like the one at Beeksma Law.
Are you in the process of negotiating a commercial lease? Do you have any questions about your rights as a tenant? If so, reach out to our team of experienced real estate lawyers today. We would be more than happy to help you navigate the leasing process. Our team is here to ensure that you are getting the best possible deal.