Before deciding to rent a dwelling or a space for operating a business, it is important to understand the specific legal rules that distinguish residential leases from commercial leases. Knowing these differences is useful before entering an agreement with the owner and landlord.
Form and Content
- Residential Lease: The landlord must use the mandatory lease form provided by the Administrative Housing Tribunal. The content must include several public order provisions decreed by the Civil Code of Quebec from which the parties cannot derogate.
- Commercial Lease: No standard form is imposed on the parties. The content is often drafted by the landlord’s lawyer or notary, and the parties are generally free to derogate from provisions of the Civil Code of Quebec that are not considered to be, nor deemed to be, of public order.
- Subleasing: The law generally allows a residential tenant to sublease the dwelling under certain conditions. Conversely, a commercial lease can prohibit the principal tenant from subleasing the commercial immovable.
- Right to Maintain Occupancy: Residential tenants who fulfill their obligations generally have a right to maintain occupancy through an automatic renewal of their fixed-term lease when it ends. This right does not exist for commercial leases.
Jurisdiction for Disputes
The competent court or tribunal to resolve disputes between a landlord and tenant will depend upon the type of immovable:
- Residential Immovables: Disputes are generally heard by the Administrative Housing Tribunal.
- Commercial Immovables: Cases are submitted to either the Court of Quebec or the Superior Court, depending on the nature and value of the claim. Alternatively, a dispute may be referred to an arbitrator if the commercial lease includes an arbitration agreement.
To learn more about the distinctions between residential and commercial leases, do not hesitate to consult your lawyer.
