Real Estate 2022: Trends and Developments
Introduction Quebec’s commercial real estate industry will remember 2021 as both a year of COVID-19 clampdowns and a year of consi...
Courts have on several occasions been called upon to determine, in the wake of a commercial tenant’s bankruptcy, a party that is entitled to retain the security deposit funds, which were remitted to the landlord upon the signing of a lease. In this regard, does the said amount accrue to the lessor or, conversely, is the lessor required to remit it to the trustee?
The prevailing jurisprudence dictates the following:
To ensure that the commercial landlord retains possession of the amount received, terms such as “security deposit” or “guarantee deposit” are to be avoided throughout the provisions of the lease. Nevertheless, it is strongly recommended that the deposit clause be worded to emphasize its non-refundable nature.
It's best to watch this in landscape mode.