Chapter 14, 15 Human Rights, Personal Info (Assignment 10) Flashcards
A “triple net lease” is best described as one in which the tenant is responsible for paying:
base rent, property taxes, insurance, and maintenance costs.
In most leases, the landlord remains responsible for paying for repairs to foundations, structural walls, and roofs. A lease in which the tenant is responsible for paying for these types of structural repairs, in addition to taxes, insurance, and maintenance costs, is
referred to as a:
“true net” or “absolute net” lease.
Which of the following statements about a “term sheet” or “letter of intent” is FALSE?
1) Term sheets are typically used in the early stages of negotiations to set out the key points of the proposed lease.
2) Term sheets help reduce the cost of transacting a lease by allowing parties to ensure they are in agreement on the
basic terms.
3) Terms sheets are never legally binding.
4) Term sheets usually precede an “offer to lease”.
Terms sheets are never legally binding.
because if a term sheet is signed by the parties and contains all essential elements of the proposed lease, a court may conclude that the agreement is binding.
When negotiating a complex lease, parties will usually sign three separate documents. The first sets out the basic terms of the
lease and is non-binding; the second is a binding document that contains conditions that must be performed by both sides prior to closing; and the third is the final and binding agreement. What are the proper names of these three documents in chronological order?
Term sheet; offer to lease; lease agreement
Laura is a property manager who oversees several commercial leases. To remind herself of the essential terms of each lease,
Laura has prepared detailed summaries that allow her to quickly refresh her memory and to easily navigate the full leases. These
helpful summaries are commonly known as:
lease abstracts.
Which of the following statements about the remedy of distress is TRUE?
1) The only statute that governs rent distress is the Commercial Tenancy Act.
2) Distress may be exercised during the term of the lease or within 12 months afterwards.
3) A landlord can access the tenant’s private property by any means necessary, including by way of forcible entry.
4) Only the quantity of goods that are reasonably necessary to satisfy the rent due may be seized.
Only the quantity of goods that are reasonably necessary to satisfy the rent due may be seized.
Option (1) is incorrect because rent distress in British Columbia is governed by both the Commercial Tenancy Act and the Rent Distress Act.
Option (2) is incorrect because distress may only be exercised during the term of the lease or within six
months of its termination.
Option (3) is incorrect because forcible entry into the property is not permitted for the purposes of levying distress.
Jerry leases a space in a shopping centre where he operates a golf store. The shopping centre is right next to a golf course,
which has greatly benefited Jerry’s sales. Because of this fact, Jerry was willing to agree to a percentage rent. The lease provides
that Jerry will pay $5,000 base rent per month plus 1% of monthly sales above a “break point” of $50,000. In August, Jerry’s sales totaled $75,000, but in September his sales were only $48,000. What rental payments did Jerry make in August and September,
respectively?
$5,250 and $5,000
correct because in August, Jerry paid the $5,000 base rent plus one percent of monthly sales above $50,000 (i.e.,
one percent of $25,000, which is $250). In September, Jerry didn’t sell more than $50,000, so he was only responsible for paying the $5,000 base rent.
If a commercial tenant fails to pay rent, which of the following remedies may be available to the landlord?
1) The right to seize and sell the tenant’s private property
2) The right to demand accelerated payment of future rent
3) The right to perform the tenant’s covenants and to charge an administrative fee
4) All of the above options may be open to a landlord whose tenant is in default.
All of the above options may be open to a landlord whose tenant is in default.
Which of the following statements about leasehold mortgages is TRUE?
1) Leases can never be used as security for a loan.
2) Leasehold mortgages can be issued, but cannot be registered on title.
3) The lender under a leasehold mortgage can take over the lease, but can never foreclose on the underlying property.
4) Landlords typically encourage their tenants to obtain leasehold mortgage loans.
The lender under a leasehold mortgage can take over the lease, but can never foreclose on the underlying property.
correct because while the lender under a leasehold mortgage can take over the lease should the borrower default on
their payments, they cannot foreclose on the underlying property.
Option (1) is incorrect because as an interest in land, leases can be the subject of a mortgage, with the lease serving as security for the loan.
Option (2) is incorrect because leasehold
mortgages may be registered on title.
Option (4) is incorrect because landlords typically discourage their tenants from obtaining a leasehold mortgage by limiting their right to do so.
(SAMPLE LEASE) What will be the monthly instalment of basic rent due in February, 2019 (excluding GST)? On what date will it be due?
$4,848.71 on February 1st, 2019
because the monthly instalment of basic rent (excluding GST) is $4,575.54 from January 1, 2016 –
December 31, 2018, after which time it increases to $4,848.71. Rent is due on the first day of every month, and therefore February 1, 2019 is the correct date. Option
(SAMPLE LEASE) Which of the following terms is not defined in the definitions section of the lease (section 1.2)?
1) Operating Costs
2) Basic Rent
3) Possession Date
4) PST
PST
Option (4) is correct because PST is the only term which is not defined in section 1.2 of the lease.
(SAMPLE LEASE) XYZ Tenant Corporation wants to place a sign near the entrance of its premises to inform building patrons of XYZ’s location. Can
XYZ do this?
Yes; however, the landlord must approve the design, colour, size, and location of the sign.
(SAMPLE LEASE)
XYZ has put in a request to sublet the Premises and ABC Landlord has approved this request. In the course of approving the request, ABC spent $5,000 in legal fees and disbursements while conducting due diligence to ensure that the proposed sub-
lessee was in sound financial shape and able to meet its rental obligations. Under clause 6.2, how much does XYZ have to pay
ABC to cover the costs of considering the sublet request?
$5,500
because under clause 6.2, the Tenant is required to pay an administrative fee of $500 and must also
reimburse the landlord for all costs incurred by the landlord in connection with each sublet request.
(SAMPLE LEASE)
In late 2018, a windstorm caused a large tree to crash through the roof of XYZ’s Premises. XYZ and ABC agreed that the rental payment should abate, under section 7.10 of the lease, until the damage was repaired. The damage was repaired by December
1st, 2018, but for all of November 2018, 50% of the Premises was not reasonably capable of use and occupancy. According to section 7.10, what is the amount of rent that XYZ was required to pay for the month of November 2018?
$2,287.77
because under clause 7.10, if the premises are not reasonably capable of use and occupancy by the Tenant for more than 10 days because of damage, rent will abate in proportion to the part of the Premises that cannot be used.
In this case, 50% of the Premises could not be used or occupied for the month of November 2018, so the regular rent for that month must be reduced by half. $4,575.54 / 2 = $2,287.77.
(SAMPLE LEASE)
What amount of liability insurance for personal injury occurring on the Premises must the Tenant obtain?
$3,000,000 in respect of any one occurrence
(SAMPLE LEASE)
On January 1, 2022, XYZ has remained on the Premises, but has not signed a new lease agreement (XYZ is “overholding”). ABC has elected to allow XYZ to remain on the Premises on a month-to-month basis.
In this situation, what is the monthly rental instalment due on January 1, 2022 (excluding GST)?
$4,848.71
correct because according to clause 11.2, where the Landlord has elected to accept the continued tenancy on a month-to-month basis, the monthly rental instalment will be 1.5 times that which was due in the last year before the lease term ended. Therefore, $4,848.71 × 1.5 = $7,273.07.
(SAMPLE LEASE)
XYZ wants to have a one-day blowout sale and is hoping to attract customers to the store by hiring a DJ. The DJ will be located in the store, but will be playing loud music that can be heard outside the Premises. According to Schedule A of the lease, is this
permitted?
No, Schedule A prohibits the playing of music that can be heard outside the Premises.
You must file a complaint form with the Human Rights Tribunal within:
6 months of the alleged discrimination
However, Tribunal may accept a complaint if filed late, if: it is in the public interest to accept the complaint, and
no substantial prejudice will result to any person because of the delay
-mail
-email
-fax
Prima Facie means:
presumption of discrimination
Complainant with HRT must establish a prima facie case of discrimination (presumption of discrimination).
Undue Hardship:
disproportionate or excessive interference with the management of the rental property, which can be established by impossibility, serious risk, excessive cost etc.
What is Duty to Accommodate?
a process in which all parties (landlord and tenant) have complementary duties and obligations to accommodate the other unless undue hardship is established.
The landlord or property manager must establish that all other alternative have been exhausted and that any other accommodations would also cause undue hardship.
Undue Hardship can be:
Impossibility: it is impossible to accommodate the tenant
Serious Risk: cannot accommodate the tenant due to safety/security reasons
Excessive Cost: landlord lacks financial resources to accommodate the tenant
The law of protection of personal information is governed by 3 sources:
- Personal Information Protection Act (PIPA)
- Freedom of Information and Protection of Privacy Act (FIPPA)
- common law
A privacy complaint is made to:
The Office of the Information and Privacy Commissioner (OIPC)
has jurisdiction over the information collection and privacy practices of public bodies and private organizations including property management companies oversees and enforces PIPA and FIPPA
The Privacy Act legislation defines a breach of privacy as
actionable tort
