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exam 4 > commercial condo > Flashcards

commercial condo Flashcards

1
Q

mixed-use condo

A

hybird mix-use condo - condo corporation can lease ground floor retailing/ second-floor units

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2
Q

shared facilities

A

both access parking space in the underground lot (mixed use building) - one floor for commercial and the second one for offices

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3
Q

declarant

A

it all begins with them the owner of the freehold

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4
Q

declaration

A

condo constitution details how new corporation is legally organized and how the governance is structured

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5
Q

description

A

architecture plan, structure plan

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6
Q

registration

A

condo is created by registering the declaration

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7
Q

condominium corporation index

A

condominium act require the land registrar maintain index of all registered condo ( in the land registration office)

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8
Q

exclusive use common element

A

unit owner may have exclusive use of selected portion of the common element ( parking space, docking facilities, signage) - it is the responsibility of the condominium corporation

  • you need board approval to make additions or alteration
  • the owner will the agree to be responsible for insurance, liability and insurance
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9
Q

exclusive use common element

A

unit owner may have exclusive use of selected portion of the common element ( parking space, docking facilities, signage) - it is the responsibility of the condominium corporation

  • you need board approval to make additions or alteration
  • the owner will the agree to be responsible for insurance, liability and insurance
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10
Q

how commercial condo are managed –

A
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11
Q

rights and obligation in a commercial tenancy

A

landlord can apply to the small claims court or the superior court of justice for rent related disputes

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12
Q

what is correct regarding percentage lease?

A

anchor tenant- may pay a lower percentage rate because that particular retails draws consumer to the retail shopping centre ( they are given certain concession due to their drawing power)

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13
Q

abbreviated wording

A

for lessee’s obligation to remit rent to the lessor - addressed under short form of leases act

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14
Q

deposit relating to commercial tenancies act

A

no obligation to pay annual interest on commercial tenant security deposit

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15
Q

leases regeneration can be complex

A

tenant loses any right leasehold improvement at the point of lease expiration

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16
Q

the short form of lease act

A

the act provide abbreviation wording that can be used in lease

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17
Q

if relevant building plans are unavailable

A

1-you can hire professional who specialize in measuring rentable area

2-have laser measured floor plans created by professional

3- contact surveyor for third party assistance

18
Q

signage

A

tenenant is responsible for the coast of installation and removal and must comply with municipal bylaws

19
Q

Gross lease

A

can include an escalation clause alolw for rent changes on increased operating costs

20
Q

commercial tenant rent

A

tenant cannot withhold rent, due to landlord failure to fulfill obligation under the lease but can take legal recourse

21
Q

in a typical community or regional shopping center lease

A

a site plan is usually attached to he lease identifying the specific premises being leased

22
Q

commercial tenant has month to month tenancy arrangement

A

the tenant can terminate the tenancy with one month notice

23
Q

confirmation of acceptance

A

is signed by the person who fianally accepts the offer as a binding agreement including all changes both typed and written

24
Q

rent increases are not regulated

A

unlike the residential tenancies act, the commercial tenancies act does not set restrictions relating to rent increases

25
Q

commerical lease and commercial tenancies act rules about changing locks

A

the landlord can change the locks on the 16th days after the rent was due

26
Q

what is head lease?

A

the original lease is referred to as head lease

27
Q

An agreement to lease

A

must set out all essential terms

28
Q

trade fixtures

A

if the tenant decides not to remove the trade fixtures then those fixtures become the property of the landlord

29
Q

what is the annual rent per square foot ?

A

min base rent + annual percentage rent + additional rent - value provided for tenant improvement / Rentable area

30
Q

what is the annual rent per square foot ?

A

min base rent + annual percentage rent + additional rent - value provided for tenant improvement / Rentable area

31
Q

update gross sales from tenant paying percentage

A
  • to provide landlord with sales data assessing the effectiveness of advertising campaigns
  • to provide continuous check on retail tenant sales performance and possibility of tenant failure due to low sales
32
Q

moving to a larger location

A

if the lease did not include a continuous use clause, West end bakery could continue to pay the rent and leave the premises unoccupied for the duration of the lease

33
Q

pass - through in a commercial lease

A

apportions costs to the tenant ( it is an important landlord consideration in a commercial lease, while is it usually focused on operating expenses, landlord may include certain capital improvements ( which may prove costly from tenant perspective)

34
Q

advance tax payments

A

-commercial leases involve base and additional rents provided for advance payment to align with municipal tax payment date

  • this does affect the total monthly costs to tenants
35
Q

supplementary rent

A

in addition to base rent, supplementary rent may be charged to cover the tenant pro-rated share of operating costs ( could be connect to consumer price index ( CPI)

36
Q

min elements required in all leases

A

1- name of all parties
2- descriptions of the leased premises
3- rent
4- permitted use
5-commencement and expiration date
6- right and obligation of the parties

37
Q

gross lease

A

agreement in which the tenant pays fixed rent and the owner pays all operating expenses associated with the property

38
Q

net leases

A

three types of net leases

single net lease- tenant pay base min rent + additional rent ( like property tax), the landlord pay the rest

double net lease - Tenant pays base rent + additional rent ( like property tax, maintenance and insurance) , roof replacement, structural repairs and replacement, operating expenses are the landlord responsibility

Triple net lease - Tenant pays base rent plus additional rent, which includes all of the expenses related to the
operation of the complex plus roof replacement, structural repairs, and replacements.

Triple net lease

39
Q

percentage lease

A
  • Reporting of monthly sales figures to help the landlord receive monthly interim cheques for any percentage
    rent due without having to wait until the end of the year
  • A continuous reporting of sales levels of tenants that enable the landlord to calculate accurate percentage
    rents, and to monitor tenant success levels and risk of failures
40
Q

The basic components that should be addressed during lease renewal negotiations include the following

A
  • Length of the renewal term can be established when negotiating the original lease.
  • Rental rate is generally negotiated based on comparable properties at the time of renewal. In the rare cases in
    which both parties are unable to agree on a rental price, the issue can be brought to arbitration per the
    Arbitration Act, if the lease permits arbitration.
  • Leasehold improvements are negotiable, but the tenant typically has no rights to the leasehold improvements
    as specified in the original lease.
41
Q

Blend and Extend

A

Blend and extend is a common practice that refers to
renegotiating the terms of an existing lease before the end of the lease term, possibly with a new rental rate and/or
increased or decreased area of the occupied space. In other words, the remaining term in an existing lease is
extended and the current rental rate is “blended” with a newly agreed-upon rate.

exam 4 (14 decks)

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