Commercial Real Estate Investment/Registration

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Question
I am a Tenant in a commercial property in Calgary Alberta. I am in the middle of a 10 year lease and recently received notice that the property has been sold and the new owner is kicking me out because my lease was not registered. The Purchaser told me this was a requirement of Alberta Land Titles although my lease specifically said that I could not register. What is the point of a lease? Is it not binding for the entire term between parties and successors?

Answer
Steve

its a great question and I feel yourt frusteration. You cant register it, but hten you cant stay either.

Im in Ontario so I cant talk specifically about about Alberta. Plus, Im used to hearing that tenants want OUT of a lease not wanting to stay in thats more rare.

Here a lease is simply another form of holding property. As long as you are not in breach of that lease (in Ontario) theres no way they can throw you out, save and except say Act of God, demolition or other reasons that the property's would become inhabitable.

having said that, I'd have to read your lease. Maybe there are specific conditions in where a landlord can throw you out. its impossible to say without reading eh document.

then theres the gray area as well -- we knwo some that have got off with murder because they had the best lawyers and yet others the have been sentenced to death - used as a scapegoat with no hard evidence - before DNA testing etc.

Law is NEVER black and white....

if you kill someone for instance, its against the law - but if you can prove it was self defence, then you're likely to walk.

what Ive leaned about law is, its best to avoid problems rather then try to fight them - life's too short and lawyers are too expensive - even if you win, is it worth it?

you have to look at your situation and say, if I were to fight it, what can I gain? do you have such a great income stream from the property that its worth fighting for?

If not, you could also BLUFF - tell them you will fight to the Pearly gates OR you can "settle with me" - you might get a winfall just to avoid court.

Now, if the property is owned by some big conglomerate this might not work cause they may have deep pockets and feel they will win on court costing you more money but if its a mom and pop operation, they might want to avoid court.

"Know the lay of the land and only fight when it is to your advantage" -- SunTzu

Im sure you will get various answers from various lawyers if you get a few opinions. Most leases here also says that same that you will not register it on title. I have seen this as a point of negotiation during the signing of the lease but you already agreed not to register it 5 years ago so thats a point for the other side.

if you do get legal advise on this, please write back to me cause I want to know what their opinion on it is.

martial323 at msn.com

best of luck

Phil

Commercial Real Estate Investment

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Phil Nicols

Expertise

Legal issues which are specific from state to state.

Experience

Licensed Realtor since 1987, Broker Since 1991. Ontario Canada real estate -- Commercial, investment, leasing, business brokerage

Organizations
Stockwell Realty Corporation

Publications
www.StockwellRealty.com

Education/Credentials
Real Estate Council of Ontario, Registered under the real estate and business brokers act 2002

Awards and Honors
A few from past organizations I belong to. Now with my own company, it's hard for me to give myself awards.

Past/Present Clients
Dealt with both small as well as regional tenants, individual investors to syndications.

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