Subtenancies
Where a Head Tenant is declared bankrupt, the Commercial Tenancies Act of Ontario provides for a Subtenant having the right, if the Landlord had approved the subtenancy, to assume the Head Lease.
But, if the rent under the Sublease is less than the rent under the Head Lease, then the Subtenant has to pay the higher amount set out in the Head Lease.
Notice to Assignee
If a tenant requests, and a landlord agrees, to an assignment of the tenant’s lease to a third party (“assignee”), the landlord should make sure that it includes in the assignment agreement, a provision for how notice is to be given to the assignee.
Why?
Because the landlord wants to know who and where to give notice to not only the tenant, but also to the assignee, and not be in doubt as to how to notify the assignee in the event of a default by either the tenant or the assignee.
Harvey Haber, Q.C.