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Pre Lease Agreement Template for Canada

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Key Requirements PROMPT example:

Pre Lease Agreement

"I need a Pre-Lease Agreement for a retail space in downtown Toronto, where the property is currently under renovation and expected to be ready by March 2025, with specific provisions for tenant improvements and early access for fixture installation."

Document background
The Pre-Lease Agreement serves as a crucial intermediate step in property leasing transactions within the Canadian legal framework. It is typically used when parties have agreed to basic lease terms but require a binding commitment before executing the final lease agreement. This might occur during property construction, when securing future tenancy, or in situations requiring specific conditions to be met before lease commencement. The document includes essential elements such as property details, proposed lease terms, deposits, and timelines, while ensuring compliance with federal and provincial regulations. It provides security for both landlords and tenants during the pre-lease period while maintaining flexibility for final lease negotiations. This type of agreement is particularly valuable in commercial real estate transactions or when significant property modifications are planned before occupancy.
Suggested Sections

1. Parties: Identification of the prospective landlord and tenant, including full legal names and addresses

2. Background: Context of the agreement, including property details and parties' intention to enter into a lease agreement

3. Definitions: Key terms used throughout the agreement

4. Property Description: Detailed description of the property to be leased, including address and unit details

5. Term and Commencement: Proposed lease start date and duration of the lease term

6. Rent and Deposits: Agreed rental amount, payment terms, and any required deposits

7. Conditions Precedent: Conditions that must be satisfied before the lease agreement becomes binding

8. Timeline for Lease Execution: Deadline for finalizing and executing the formal lease agreement

9. Good Faith Deposit: Details of any deposit required to secure the pre-lease agreement

10. Termination Rights: Circumstances under which either party may terminate the pre-lease agreement

11. Binding Effect: Clear statement of which terms are binding and which are subject to the final lease agreement

12. Governing Law: Specification that the agreement is governed by Canadian law and the applicable province

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Construction/Renovation Clause: Required when the property is under construction or renovation, specifying completion requirements and contingencies

2. Multiple Unit Selection: Used when the tenant has options to choose from multiple units in a development

3. Broker/Agent Provisions: Required when real estate agents or brokers are involved in the transaction

4. Special Modifications: Used when specific modifications to the property are agreed upon before lease commencement

5. Assignment and Subletting: Included when pre-lease rights may need to be transferred

6. Force Majeure: Added when specific circumstances might affect property completion or availability

7. Environmental Conditions: Required for properties with specific environmental considerations or certifications

Suggested Schedules

1. Schedule A - Property Details: Detailed description of the property, including floor plans and specifications

2. Schedule B - Proposed Lease Terms: Draft of key terms to be included in the final lease agreement

3. Schedule C - Payment Schedule: Breakdown of deposits, fees, and rent payment structure

4. Schedule D - Construction/Renovation Timeline: If applicable, detailed timeline for property completion or modifications

5. Schedule E - Property Rules and Regulations: Preliminary rules and regulations that will apply to the property

6. Appendix 1 - Property Images: Photos or renderings of the property or unit

7. Appendix 2 - Required Documentation: List of documents required from both parties for lease execution

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses






























Relevant Industries

Real Estate

Commercial Property

Residential Property

Retail

Office Space

Industrial

Healthcare

Education

Hospitality

Technology

Manufacturing

Professional Services

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Risk Management

Compliance

Property Management

Business Development

Asset Management

Relevant Roles

Property Manager

Real Estate Manager

Facilities Manager

Legal Counsel

Contract Administrator

Real Estate Agent

Leasing Manager

Asset Manager

Operations Director

Chief Financial Officer

Risk Manager

Business Development Manager

Property Development Manager

Compliance Officer

Real Estate Portfolio Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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