Payment of rent
As for a commercial lease, the payment of rent is an obligation of the lessee. The legislator regulates the terms of payment; the parties cannot set their own terms of payment.
Main terms of rent payment:
- The rent agreed upon shall be indicated in the lease;1
- The rent is payable in equal instalments, except for the last, which may be less;2
- The rent is payable in advance, on the first day of the month, unless otherwise agreed;3
- The lessor may not exact any instalment in excess of one month’s rent;4
- The lessor may not exact any amount of money other than the rent5 (e.g. key deposit, postdated cheques, etc.).
The lessor may not include clauses to:
- The effect that the full amount of the rent becomes payable in the event of failure by the lessee to make a payment;6
- Adjust the rent during the term of the lease with a fixed term of 12 months or less;7
- Adjust the rent more than once during each 12-month period in a lease with a term of more than 12 months.8
ATTENTION! The broker must make sure he does not engage in a transaction that violates the provisions of the Act respecting the Administrative Housing Tribunal:
- Security deposit;
- Rent payment;
- Renoviction;
- Eviction or elderly lessees;
- Etc.
For more information on rent payment terms, read the article Payment of rent: the first payment and terms of payment.
In cases where an amount is paid as a deposit on rent by the future lessee, it is important to use the deposit clause contained in the form Promise to lease – Residential. Read more on this topic in the article The deposit on a promise to lease in residential and commercial real estate.
► DUTIES AND OBLIGATIONS OF THE BROKER
Where the sale concerns an income property, comply with your verification obligation by entering the rent generated by the immovable under clause D2.6 a) of the mandatory form Declarations by the seller of the immovable (PDF). (Note: Although not mandatory, the use of this form is recommended when the immovable contains five dwellings or more). Use the leases and the rent increase notices as a basis and keep copies in your record.
1 Art. 1903 (1) C.C.Q.
2 Art. 1903 (2) C.C.Q.
3 Ibid.
4 Art. 1904 (1) C.C.Q.
5 Art. 1904 (2) C.C.Q.
6 Art. 1905 C.C.Q.
7 Art. 1906 (1) C.C.Q.
8 Art. 1906 (2) C.C.Q.
