The most hated of lease clauses – the insurance clause – is not only frequently ignored, but is also poorly understood by almost everyone in the real estate industry. And that includes real estate lawyers.
The Gross Revenue Reports clause alleviates the landlord’s concern that the tenant is “cooking the books” so as to avoid paying percentage rent. Without this clause, unethical tenants would be free to under-report gross revenue.
You can’t afford to not know the legal dangers lurking to destroy your deal, client and reputation. The solution? Educate yourself and read on to learn about one of the most common mistakes arising out of lease deals.
Reading both the Superior Court and Ontario Court of Appeal’s decisions that ended the hotly disputed question of Additional Rent would be of great value for any leasing agent. Here’s a summary.
Canadian courts are unclear as to whether or not they’ll enforce a Continuous Operation clause. Some judges have and others haven’t. So, don’t leave it up to chance to determine the fate of your client’s livelihood. You might find yourself in a lawsuit.
Since a lawyer may not be readily available, it’s best to arm yourself with knowledge and think like a lawyer. Thinking like a lawyer is easy – be paranoid and always think of the worst-case scenario!