What is the Commercial Tenancy Act?

We are often asked whether Alberta has a Commercial Tenancy Act such as would be found in either British Columbia or Ontario for example. The simple answer is that at present, Alberta does not have a Commercial Tenancy Act.

What then are the laws which provide protection for commercial tenants and landlords? Well, one law which does relate to some aspects of the agreement falls within the purview of the Alberta Rights Act which covers the issues of discrimination.

For the majority of Alberta commercial landlords and tenants, the obvious recourse to seek protection or financial recourse is through the civil courts which deal with all aspects of civil law as it relates the use or misuse of contracts.

The terms of the commercial contract are something which needs to be carefully scrutinized by a tenant before they sign. The best approach so you don’t find yourself embroiled with a contractual or financial issue with a landlord is to be very clear about the terms of the commercial contract.

You are best advised to speak with a commercial real estate lawyer who can properly review the terms of the lease contract and to advise of any potential problems which could impact your business. An experienced lawyer can also assist in helping you negotiate certain aspects of the contract to ensure you have the best terms possible.

First, you will most likely be asked to sign the “offer to lease”, and the negotiations take place after this has occurred. Then, you and your representative can engage in the areas which may require some negotiation. Any changes agreed upon as it pertains to the lease should be confirmed in writing.

Many contracts allow for some mediation dispute aspect to avoid expensive litigious disputes, but if you cannot resolve your dispute amicably, then be prepared to resolve the matter in a civil court.