Cam Appleton, Commercial Real Estate, Coldwell Banker Prestige Realty
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Commercial Tenancy Act

An older BC statute that applies to commercial leases. Most of what matters in a commercial tenancy comes from the lease itself, not from the Act.

By Cam Appleton, Commercial Real Estate Agent · Updated

For example: A tenant expecting residential-style rent limits learns that commercial tenancies don't have them and the lease governs. (Illustration only, not a real deal.)

Official source: Commercial Tenancy Act (BC Laws)

Example only, not a real client. Say a tenant falls behind on rent and the landlord wants to act. In BC, commercial tenancies are governed mainly by the lease and the Commercial Tenancy Act, not the residential rules. Both sides get legal advice on the steps that apply.

What I’d tell a friend

Commercial and residential tenancies follow different rules in BC. Rely on your lease and a BC lawyer, not residential guides.

Why it matters to you

It's short and old, so it gives commercial tenants far less protection than residential tenants get. That means your lease does most of the work, and what you negotiate before signing is what protects you.

How to use it in your deal

Tenants should understand that your lease is the main protection, so negotiate it carefully with a lawyer. The Act and common law give landlords strong remedies, including re-entry and distress in some cases, so don't fall behind on rent assuming there's a long process. Landlords should follow the Act's procedures exactly when using remedies, since mistakes can lead to liability.

Buyers of commercial buildings should know which leases are commercial and which units are residential, since different laws apply. Small businesses in mixed-use buildings sometimes confuse the two regimes.

Mistakes I see

Assuming residential tenancy protections apply. Landlords using distress without following the rules. Not reading the lease.

In BC and Vancouver

The Commercial Tenancy Act applies to commercial leases in BC. BC's Law Institute has recommended modernizing it. The Residential Tenancy Act covers homes, not businesses.

Official sources: Commercial Tenancy Act (BC Laws) · Residential Tenancy Act (BC Laws) · CanLII (court decisions)

What it is

BC’s Commercial Tenancy Act is an older provincial law that covers some matters between commercial landlords and tenants, such as certain remedies.

Much of the relationship is set by the lease itself.

What to know

Commercial tenants have fewer statutory protections than residential tenants, so lease wording matters a lot.

Check with a BC lawyer on how the law applies to your situation.

Questions to ask before you sign

  • Which law applies to my space?
  • What remedies does my landlord have?
  • What does my lease say about default?
  • Do residential rules apply anywhere in the building?

Keep reading

Related terms: Distress, Holdover / overholding, Offer to lease

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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.