Notice of lease (registration of lease)

When a business rents its premises, the lease may be a notice on the property’s record rather than only a document in a drawer. A buyer of the business can ask whether one was registered and whether it is still accurate. See what happens to a lease if the landlord sells the building.

How it works in Ontario

Under s. 111(4), the applicant delivers a notice of the lease setting out its particulars, a notice accompanied by the lease, or a notice accompanied by a notarial copy. Under s. 111(5), once registered, every registered owner and every person deriving title through the owner, except owners of encumbrances registered before the notice, is deemed to have knowledge of the document as an encumbrance on the land. Where the lease is not by the registered owner but the owner’s title appears to be subject to it, s. 111(3) lets the land registrar enter notice with the owner’s concurrence.

What to check

• Whether a notice appears on the parcel register for the premises
• Whether later changes, such as an amendment or an assignment of the lease, were also registered, as s. 111(6) permits
• Whether the land is registered under the Land Titles Act, which this entry covers