REALWorld Law

Commercial leases

Security of tenure

Does a lessee have a right to continue to occupy the relevant real estate after the expiry of a commercial lease?

Canada

Canada

A tenant can continue to occupy the relevant real estate when a commercial lease has expired in two ways. Firstly, it is common for a lease to contain an option for the tenant to renew the lease for an additional term; however, this must be negotiated between the parties.

Alternatively, a lease may contain a holding over clause which allows the tenant to remain in occupation of the leased premises on the basis of a monthly tenancy once the lease term has expired, terminable by either party on a month’s notice. However, where the landlord does not consent to the tenant continuing possession past the expiry of the lease, the landlord is entitled to immediate possession of the leased premises.