Question: What does a lease do?Answer:
The grant of a lease creates what is called a ‘leasehold estate’. This gives someone (the tenant) a temporary right to hold land and effectively the tenant gains legal ownership of the property for the duration of the lease.
A landlord holds title for a piece of land but when he or she leases it to a tenant or lessee, the title or proprietary interest is transferred to them.
A lease must be in writing to create a leasehold estate that is binding at law, known as the lease agreement. The lease agreement will set out the duration of the lease, including options to renew, which determines whether you have to register the lease or not. Retail leases have a minimum time limit of 5 years including any options to renew.
Speak with one of our lawyers about the drafting or review of your lease agreement!