Why Register a Lease?

John Kafrouni

15 Sep 2011

•

min read

After a lease is signed by the landlord and tenant, the tenant will often be asked by their solicitor: “do you want the lease to be registered at the Land Titles Office?”

Given the costs in doing so (often $500 to $1,000 depending on the premises), there must be a good reason for it.

Well often there is.

If your lease (including options) is for a period greater than 3 years, a new landlord will not have to honour your options if the lease is not registered. That is, registering you lease protects you against future owners kicking you out.

An example:

you are the tenant of premises and you have a lease with an initial term of 3 years with an option period of 3 years (i.e. 6 years in total);
your lease is not registered;
your landlord sells the building in which the premises are located to Bill in the second year of the lease;
Bill wants to use the leased premises himself.

In these circumstances, Bill is not required to honour the option period and can have the tenant removed upon the expiry of the 3rd year.

Where the location of the business is crucial to the success of the business, this could be catastrophic.

If the lease was registered in this example, Bill would have had to honour the full length of the lease even though he was not the owner at the time the lease was entered into.

Therefore, to avoid a problem like this happening to you, make sure your lease gets registered.

Joe Kafrouni, Legal Practitioner Director, Kafrouni Lawyers

Disclaimer

The information provided by Kafrouni Lawyers is intended to provide general information and is not legal advice or a substitute for it. Business people should always consult their own legal advisors to discuss their particular circumstances. Kafrouni Lawyers makes no warranties or representations regarding the information and exclude any liability which may arise as a result of the use of this information. This information is the copyright of Kafrouni Lawyers.

Liability limited by a scheme approved under professional standards legislation.

What People Say

Joe Kafrouni helped me in my acrimonious shareholders dispute, resulting in Supreme Court litigation. During my case, which took years to resolve, I appreciated Joe’s great concern for my well being and that of my family. I felt he was attentive, direct and provided me with sound advice. In the end, Joe skilfully negotiated a settlement that exceeded my expectations and I am grateful.

Thank you, Joe. It was a pleasure working with you to resolve the matter today. In particular, I appreciated your patience to fully understand each party’s position and to bed down a final heads of agreement to conclude the resolution between the parties.

Joe Kafrouni has been our company’s lawyer from the beginning and has been instrumental in our journey as company owners and directors. When dealing with both complex and sensitive company issues, Joe is able to provide us with clearly articulated strategies that are well thought‐out and with the bigger picture in mind. He genuinely cares and is always willing to share his personal views, which are both honest and just. Joe is highly professional and knowledgeable in his field. You will definitely benefit having him on your team.

Joe, I appreciate it was a very long day yesterday but we got there in the end. I thought you did a great job and I enjoyed watching your approach and the way you conducted the mediation.

Joe, as you know we were in a very difficult position with our company before we engaged you as our lawyer and fortunately, even with the odds stacked heavily against us in our shareholders dispute, you managed to pull us through to victory. You are a true credit to the industry not only because of your skilled negotiating tactics but also due to your personable nature, which made us feel comfortable in such a volatile situation.

The biggest lesson I have learnt from you recently, Joe, is that it pays to have a professional such as yourself on my side to deal with matters that I am unequipped to handle … so I can carry on with the task at hand of building my business! Thanks again, I’ll take pleasure in recommending your services to anyone in need.

A big thank you for your time today, Joe. Thankfully we managed to strike a deal although it took a little while to do. Thanks for your patience and perseverance.

Contact

Let’s talk.

‍

I take on a limited number of matters so I can give each my full attention with the time I have.

‍

To keep things simple and fair, I offer an initial paid consultation that you can book here. It’s a chance for us to speak directly about your needs — no obligations, no pressure.

‍

If you're ready to move forward, you can choose a time that suits you and pay the initial consultation fee securely when you book.

‍

This approach helps me focus on clients who are serious about getting the right advice and ensures I can give you the time and care the matter deserves.

‍

I allow up to 1.5 hours for the consultation. Afterward, you’ll receive a short summary of what we discussed and any recommended next steps.

‍

This approach helps me work closely with clients who are serious about getting the right advice — and ensures I can give them the attention they’re paying for.

Table of contents

What People Say

Contact