Commercial leasing environment
The nature of the immovables that come under commercial leasing varies greatly. The most common types are:
- Residential immovable containing five or more dwellings;
- Commercial space dedicated to retail trade;
- Commercial space dedicated to office space;
- Industrial immovable;
- Commercial or industrial co-ownership property;
- Commercial land.
The nature of the immovable will usually impact the context of the transaction, since the key negotiating elements depend on it, as do the normal obligations of lessors and lessees.
For instance the value of the rent in relation to the space occupied is an important parameter for several types of commercial immovables. Negotiations also often relate to the inclusion or exclusion of operating costs. In addition, environmental assessments are frequently used, especially for industrial buildings and commercial land.
► DUTIES AND OBLIGATIONS OF THE BROKER
Are ethical obligations different in commercial brokerage?
No, but certain practices may differ depending on the field of activity.
They include:
- Forms other than OACIQ mandatory or recommended forms may be used;
- Cancellation of the promise to purchase is possible after due diligence;
- Visit of the immovable often conditional upon acceptance of a promise to purchase;
- Information and duty to collaborate, which can be subject to a confidentiality agreement;
- Etc.
Despite these differences, commercial brokers are also bound by their ethical obligations under the Act and its regulations:
- Transparency
- Information and verification
- Disclosure
- Loyalty and representation
- Duty and advice
- Collaboration
- Availability
- Etc.
See more on this topic in the articles “Residential” or “Commercial” Brokerage: Ethical obligations are the same for all and Duties and ethical obligations of my broker.
The FAQ on commercial real estate brokerage also contains information on the concepts specific to this field of practice.
For more information on the differences between residential and commercial brokerage, read the article Commercial real estate requires considerable expertise!
