Lease Agreement

Understand how lease agreements work in Canadian real estate, what they must include, and how they protect tenants and landlords alike.

Lease Agreement

May 22, 2025


What is a Lease Agreement?

A lease agreement is a legally binding contract between a landlord and a tenant outlining the terms and conditions under which the tenant may occupy and use a property.

Why Lease Agreements Matter in Real Estate

In Canadian real estate, lease agreements are critical for defining the rights and responsibilities of both landlords and tenants.

A standard lease includes:
  • Monthly rent amount and payment schedule
  • Term of lease (fixed-term or month-to-month)
  • Security deposit details
  • Rules for pets, smoking, guests, and repairs
  • Termination and renewal clauses

Some provinces, like Ontario, require landlords to use a standard government-issued lease form. Both parties must sign the agreement, and landlords must provide a copy to the tenant.

Lease agreements protect both sides: landlords gain legal recourse in case of non-payment or damage, and tenants secure housing and tenancy rights. Clarity in the lease prevents disputes and ensures compliance with provincial tenancy laws.

Understanding lease agreements is vital for anyone renting out or moving into a residential property.

Example of a Lease Agreement

A tenant signs a one-year lease at $2,000/month, with rules prohibiting subletting without the landlord’s written permission and requiring 60 days’ notice before vacating.

Key Takeaways

  • Legal contract between tenant and landlord.
  • Defines rent, terms, and responsibilities.
  • Required in all residential rental situations.
  • Regulated by provincial tenancy laws.
  • Must be clear to avoid disputes.

Related Terms

  • Tenancy Agreement
  • Landlord and Tenant Board
  • Rental Rights
  • Security Deposit
  • Residential Lease

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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