Professional lease model – Quebec

1. Professional Lease Agreement

1.1. identification of parties

This professional lease is entered into by and between the following parties:

Lessor: [Full name of Lessor], a natural or legal person, having its domicile or head office at [full address], registered in the Quebec Register of Enterprises under number [NEQ], hereinafter referred to as “the Lessor”.

Lessee: [Lessee’s full name], a natural or legal person, having its domicile or head office at [full address], registered in the Quebec Register of Enterprises under number [NEQ], hereinafter referred to as “the Lessee”.

1.2 Designation of the leased premises

The purpose of this lease is to rent the following premises:

Address: [full address of the premises to be leased], located in the building known and designated as [cadastral description], the area of which is approximately [number] square feet.

The premises comprise: [description of rooms, equipment, access included – e.g. waiting room, washrooms, kitchen area, etc.].

The premises are reserved exclusively for professional use, as described in article 1.3 below.

1.3. Purpose of the premises

The Tenant agrees to use the premises exclusively for business purposes, in accordance with the Act respecting labour standards and municipal by-laws in force.

The premises shall be used for the following purposes: [example: design consulting office, accounting firm, communications agency, etc.]. Any change in this purpose shall require the written consent of the Landlord.

It is strictly forbidden to use the premises for residential or commercial purposes without the prior consent of the Landlord.

The Tenant undertakes to comply with the by-laws of the building, in particular with respect to safety, tranquility and sanitation, as provided for in the Civil Code of Québec, in particular articles 1851 to 1880.

2. Financial terms and conditions of occupancy

2.1. Lease term

The present lease is granted for a fixed term of [duration in months or years], commencing on [start date] and ending on [end date].

At the end of this period, the lease will not be tacitly renewed. Any renewal must be the subject of a new written agreement between the parties, at least 60 days before the end of the initial lease. Failing such agreement, the Tenant must vacate the premises on the agreed date.

The Tenant acknowledges that it will not be able to avail itself of the provisions of the Civil Code of Québec concerning the right to maintain occupancy of the premises, this lease being entered into exclusively for business purposes.

2.2. Rent and terms of payment

The monthly rent agreed upon is [amount in dollars], payable in advance, on the first day of each month, without discount or delay, at the address of the Landlord or by any other means agreed upon by the parties.

The payment of rent is an essential obligation of this lease. Any delay in payment of more than five days may give rise to interest at the legal rate in force in Quebec or as agreed between the parties in a specific clause of the lease. In the event of repeated non-payment, the Lessor may terminate the Lease in accordance with Article 1971 of the Civil Code of Québec.

A receipt may be issued at the request of the Tenant to justify payments made.

2.3. Security deposit

Upon signing this lease, the Tenant shall pay a security deposit in the amount of [amount in dollars], equivalent to one month’s rent.

This deposit is intended to cover any damage caused to the rented premises or to cover any default in payment. It will be retained by the Lessor until the end of the lease, and returned within 30 days of vacating the premises, less any sums due for repairs or rent arrears.

Under no circumstances may the deposit be applied by the Tenant in payment of the last month’s rent, unless expressly agreed in writing by the Landlord.

2.4. Utilities and maintenance

The Tenant shall be responsible for the payment of all charges relating to the use of the Premises, including electricity, heating, water, internet and any other expenses related to the Tenant’s occupation of the Premises.

The Landlord remains responsible for major structural repairs to the building, except in the case of damage caused by the Tenant’s fault or negligence. The Tenant undertakes to keep the leased premises in a clean and well-maintained condition throughout the term of the lease, to carry out any necessary repairs and to notify the Landlord immediately of any damage or loss.

The Tenant may not make any alterations or improvements to the leased premises without the prior written consent of the Landlord. Any improvement or installation made without written authorization may be removed at the Tenant’s expense or become the property of the Landlord, at its sole discretion.

The Landlord may enter the premises at any time, upon reasonable notice, to ensure compliance with contractual obligations or to carry out work required for the maintenance of the building.

3. Special clauses, termination and signature

3.1 Subletting and assignment

The Tenant may not assign the Lease or sublet the Leased Premises in whole or in part without the prior written consent of the Landlord.

The purpose of this provision is to guarantee the Lessor control over the professional use of the premises and the quality of the new occupants.

• Any refusal by the Lessor must be justified by a serious reason (e.g.: insolvency of the proposed sub-tenant or change of activity not in keeping with the purpose of the premises).
• Failure to comply with this clause may result in immediate termination of the lease to the detriment of the Tenant.

3.2. Early termination

The present lease may be terminated before its normal expiry date by mutual agreement between the parties, recorded in writing.

Failing such agreement, unilateral termination shall comply with the conditions set out in the Civil Code of Québec, in particular articles 1863 et seq.

• The Tenant may request termination for serious reasons, such as operating loss or persistent disturbance caused by the Landlord.
• The Landlord may terminate the lease for repeated non-payment, non-conforming use or non-compliance with the essential clauses of the contract.
• Written notice of at least 60 days is generally required, except in cases of emergency or gross negligence.

In all cases, the grounds for termination must be serious and well-founded, with supporting documentation in case of dispute.

3.3. Disputes and jurisdiction

In the event of any dispute relating to the interpretation or performance of this lease, the parties agree to attempt an amicable resolution before any legal proceedings.

Failing agreement, the dispute will be brought before the competent courts of the judicial district in which the leased property is located.

• The applicable legislation is the Civil Code of Québec, in particular articles 1851 to 1880 governing non-residential leases.
• It is possible for the parties to include an optional mediation or arbitration clause to promote rapid and cost-effective dispute resolution.

3.4. Signatures

In witness whereof, the parties have signed the present professional lease on the date indicated below.

• Name of Lessor: [Name]
• Date: [Date of signature]
• Signature: _________________________
• Name of Tenant: [Name]
• Date: [Date of signature]
• Signature: _________________________

Conclusion

The professional lease is an essential legal tool for defining the relationship between a landlord and a professional tenant in Quebec. Throughout the sections covered, it is essential to precisely define the parties, the use of the premises, the financial conditions, and special clauses such as subletting or termination.

• Clear, comprehensive drafting helps avoid future disputes.
• Respect for reciprocal obligations ensures the stability of the contractual relationship.
• A good lease template makes rental management easier for both parties.

For further information, please consult the following articles of the Civil Code of Quebec:

• Article 1851 C.c.Q. definition of a lease
• Articles 1854 to 1860 C.c.Q.: Obligations of lessor and lessee
• Articles 1863 to 1880 C.c.Q.: Provisions specific to leases of immovables

This model professional lease was drafted by a member of the Barreau du Québec, as part of the free legal publications available on avocat-montreal.ca.

Do not hesitate to adapt this model to your particular situation, or to consult a lawyer for a personalized review of the contract.