Breaking a Commercial Lease in Ontario
You have found yourself in a position of needing to terminate your Commercial lease earlier than planned. You signed your contract with all the right intentions, but in life, things happen that you may not foresee, and you now must break your commercial lease.
The first question you will ask yourself is, what happens if I break my commercial lease? Are you able to break this contract, or are you liable for the remainder of the lease term?
In the majority of cases, you will remain financially responsible for the duration of the time left of the rented space that you had signed the contract. That said, the building owner likely has an obligation to mitigate their damages by finding a new tenant, so you may not want to cut a cheque before getting a better understanding of what this means.
Lawyer to Help Break a Commercial Lease
You may need to seek the help of a Contract Lawyer to review the documents with you to find a way out if possible.
Another option is to speak to the landlord of your space, explaining to them your situation, and ask for an early release. The landlord may have legal rights to sue you for the remainder of the lease if they wish. This is why speaking to a lawyer who specializes in contracts and leases may be your best option.
Early Release of Commercial Lease
In some commercial leases, there may be an early release option, or you can always ask the landlord to include this while drafting up the initial contract.
Assignment of Lease
Another great way out of the lease if the landlord permits may be finding a new tenant to take over your rented space for the duration of the commercial contract. You will need the consent of the landlord to do this. A reasonable landlord would rather have a new tenant in the space rather than having it empty for an extended period while taking you to court, as this can prove extremely time-consuming.
Breaking Commercial Lease Due to Landlord Responsibilities
If you want to terminate a lease due to the landlord not fulfilling their responsibilities in the contract or other reason through no fault of your own, this may be achieved. I highly recommend that you speak to a lawyer who can listen to your reasons for wanting to walk from the commercial lease and guide you in what to do from a legal standpoint.
The first thing lawyers would do would be to understand the situation and review your initial contact. You would then be advised if you had legal grounds for early termination of the commercial lease, and how best to go about achieving this.
Your initial contract should clearly state everything that the landlord is responsible for during your stay in the rental unit.
Free Consultation to Break Commercial Lease in Toronto
If you have any questions or are just looking for legal advice on how to break your commercial lease, I invite you to call me, Jonathan Kleiman, at 416-554-1639 for a free consultation. My experience and knowledge with commercial contracts and leases from small businesses to large corporations will allow me to guide you in taking the absolute best option you have. My priority is for my client’s best interest in helping them achieve their desired outcome, usually for a flat rate.