Lease Agreement in Canada: Template, Clauses and Local Law (2026)

What is a lease agreement in Canada, and which law governs it? A lease agreement in Canada is a contract by which a landlord lets property to a tenant for a term in return for rent. As with most Canadian law, the first thing to know is that leases are governed provincially and territorially, and residential and commercial leases are treated very differently. For residential tenancies, each province has its own Act and tribunal, such as the Residential Tenancies Act in Ontario with the Landlord and Tenant Board, or the Residential Tenancy Act in British Columbia with the Residential Tenancy Branch. These Acts set notice periods, deposit limits and standard forms you cannot contract out of; in Ontario, for example, a standard lease form is mandatory. Quebec is different again: a lease is governed by the Civil Code of Quebec, disputes go to the Tribunal administratif du logement, and a mandatory lease form applies to residential leases. Commercial leases are more freely negotiated, governed by a provincial commercial tenancy act where one exists (such as Ontario's Commercial Tenancies Act) and otherwise by common law. This article is general guidance, not legal advice. Tenancy and tax rules differ by province and change, so confirm the current position with the relevant provincial authority or a qualified professional before you rely on it. Last verified October 2026. ## Canada lease agreement template (commercial / general) Copy the block below and fill the bracketed fields. For a residential tenancy, use your province's mandatory or standard form instead of a free template. ```

LEASE AGREEMENT This Lease (the "Lease") is made on [DATE] BETWEEN: [LANDLORD NAME], of [address] (the "Landlord") AND [TENANT NAME], of [address] (the "Tenant") 1. PREMISES The Landlord leases to the Tenant the premises at [ADDRESS] (the "Premises") for use as [permitted use] only. 2. TERM The term is [N] years from [START DATE], with [N] renewal option(s) of [N] years, exercised by written notice [N] months before expiry. 3. RENT AND TAXES Base rent is $[AMOUNT] per [month/year] plus applicable GST/HST [and QST in Quebec], payable in advance on the [N] day of each month. 4. ADDITIONAL RENT The Tenant pays its proportionate share of [operating costs, property taxes, insurance] as set out in Schedule A (a net lease), or [the Landlord pays these] (a gross lease). 5. SECURITY The Tenant provides [a deposit / letter of credit] of $[AMOUNT]. [In residential tenancies, deposit limits are set by provincial law.] 6. USE, REPAIR AND ASSIGNMENT The Tenant keeps the interior in good repair (reasonable wear and tear excepted), uses the Premises only as permitted, and does not assign or sublet without the Landlord's consent, not to be unreasonably withheld. 7. INSURANCE AND LIABILITY The Tenant carries commercial general liability insurance of at least $[AMOUNT] and insures its own property. 8. DEFAULT AND TERMINATION On unremedied default after lawful notice, the Landlord may exercise its remedies under the Lease and the applicable provincial Act. 9. GOVERNING LAW This Lease is governed by the laws of the Province of [PROVINCE]. Signed by the Landlord: __________ Signed by the Tenant: __________ Name / date Name / date

- **Rent and taxes (clause 3).** Commercial rent generally carries GST/HST (and QST in Quebec); residential rent is generally exempt. A commercial tenant registered for GST/HST can usually recover the tax it pays, while a residential landlord cannot recover tax on its expenses.
- **Additional rent (clause 4).** Decide whether the lease is net (tenant pays a share of operating costs, taxes and insurance) or gross (landlord absorbs them). Define the share and what is included, a common source of commercial disputes.
- **Security (clause 5).** In residential tenancies, deposit limits and rules differ sharply by province; some provinces restrict or ban certain deposits. Follow the provincial Act, not the commercial norm.
- **Governing law (clause 9).** Name the province, because the governing Act, the tribunal and the deposit and notice rules all follow it. Quebec runs under the Civil Code, not common law. ## Common mistakes to avoid - Using a free commercial template for a residential tenancy, when your province requires a standard or mandatory form (as in Ontario and Quebec) with protected notice and deposit rules.
- Charging GST/HST on residential rent, which is generally exempt, or forgetting it on commercial rent.
- A vague additional-rent or operating-cost clause, so the tenant cannot tell what it is paying for.
- Taking a deposit that exceeds the provincial limit, or the wrong kind of deposit.
- Leaving the governing province blank, especially where the property is in Quebec and the Civil Code applies. ## A note on jurisdiction and current law - **Province decides.** Residential tenancies follow each province's Act and tribunal, with standard forms, notice periods and deposit limits you cannot contract out of. Quebec uses the Civil Code of Quebec and the Tribunal administratif du logement. Commercial leases follow a provincial commercial tenancy act where one exists, otherwise common law.
- **Sales tax.** Commercial rent generally carries GST/HST, recoverable by a registered commercial tenant; residential rent is generally exempt. Quebec adds QST. <!-- [VERIFY: current GST/HST and QST treatment of commercial rent as of October 2026] -->
- **Standard forms.** Ontario and Quebec, among others, require a standard or mandatory residential lease form. ## Where a contract workspace helps A template gets you a sound commercial lease, and your province's form covers a residential tenancy. The ongoing work is keeping rent, additional-rent and tax terms consistent across a portfolio in different provinces, checking a draft for weak or missing clauses before you sign, and tracking option, renewal and expiry dates across many leases. Drafting a Canadian lease, reviewing its province-specific clauses, tracking the renewal and review dates and governing a whole portfolio can live in one AI workspace tuned to how you lease property. A tool like [Adira](https://adiralaw.com) takes this approach. This template alone is enough to put a fair lease in place; one workspace just joins the drafting, review and tracking into a single job.