Are you a landlord or a tenant and you have a retail or a commercial lease, that has a term of three years or more inclusive of your options?
If so, then as a landlord you may have a legal obligation to register the lease on the title of your property and a tenant may have a legal right for that lease to be registered on title of the property.
The cost of registering the lease often falls to the tenant, and if there is a mortgage registered on title, then mortgagee consent is also required.
For a tenant, the benefit to having a registered lease is that it is noted on title of the property as an interest in the property. It also can also add value to the business when the time comes to sell. One of the biggest concerns for a tenant is if the landlord sells the property and the lease is not registered on title. The purchaser of the property may not be bound by the unregistered lease and the tenant could be forced to vacate.
For a landlord, having a long-term tenancy in place and registered on title, not only complies with their obligations, but a registered lease also adds value to a landlord’s property if the property is sold.
When it comes to selling a property with a commercial or retail lease, issues can arise where the lease has not been registered on title causing angst and delay for all parties involved.
A lease can only be removed off title in certain circumstances, such as where the lease comes to an end or where the parties agree to surrender the lease. This provides further protection to the tenant and certainty for a landlord.
Get in touch with us today if you require assistance with any of your leasing issues.