Document background
The Mortgage Lease Agreement is a specialized legal instrument used in Canadian real estate transactions where property financing and leasing arrangements need to be documented and coordinated in a single agreement. This document type is particularly relevant when a property owner seeks to secure mortgage financing while simultaneously establishing a lease arrangement with a tenant. The agreement ensures that both the mortgage terms and lease provisions are compatible and mutually enforceable, while protecting the interests of all parties involved. It includes detailed provisions for property use, maintenance responsibilities, payment obligations, and default remedies, all while ensuring compliance with Canadian federal banking regulations and provincial property laws. The document is commonly used in both commercial and residential real estate contexts, particularly in situations where long-term leasing arrangements are contemplated alongside mortgage financing.
