Encyclopedia
Offer to lease
A document setting out key lease terms. Depending on wording, it can be binding even before the full lease is signed.
For example: A tenant has a lawyer review the offer to lease before signing. (Illustration only, not a real deal.)
Official source: Commercial Tenancy Act (BC Laws)
Example only, not a real client. Say you are opening a physiotherapy clinic and the landlord sends a two-page offer that commits you to its standard lease. We add a tenant improvement allowance, a rent start date tied to when you can open, a renewal option and a condition that you approve the formal lease. The landlord agrees, because it wants a strong tenant in the space.
What I’d tell a friend
The offer to lease is where most of the deal is decided. Put the terms that matter to you into the offer, not into the lease later.
Why it matters to you
Once both sides sign, you're usually committed, even before the full lease exists. The rent, term, allowances and conditions you accept here are what the lease will say, so get advice before signing.
How to use it in your deal
Tenants should treat the offer as the main negotiation, since the lease usually follows it and landlords resist reopening terms. Include all key points: rent, additional rent estimate, term, renewals, inducements, landlord work, permitted use, signage, exclusive use, assignment rights, and conditions like financing, permits and lease review.
Get legal advice before signing, not after. Make sure conditions give you enough time. Landlords should be clear about what's binding and attach the standard lease if possible. Buyers of a building should check for signed offers that aren't yet leases. Both sides should know deposits paid with the offer and when they're refundable. Assume anything you sign may bind you, and say clearly what is still subject to approval.
Mistakes I see
Leaving key terms for the lease. Short condition periods. Signing without legal advice. Assuming it's not binding.
In BC and Vancouver
The offer is a contract; BC courts decide when offers to lease are binding.
Official sources: CanLII (court decisions) · Commercial Tenancy Act (BC Laws)
Why the offer carries the weight
Landlords are usually most flexible before the main business terms are agreed. Once the offer is signed, the formal lease tends to follow the landlord’s form, and asking for new points can look like reopening the deal.
That is why rent, term, allowances, free rent, options, permitted use and who does what work belong in the offer. Anything missing there is harder to win later.
Conditions that protect you
An offer can be conditional on things you need to confirm, such as your review of the formal lease, zoning that allows your use, financing and approval from a franchisor. Each condition needs a clear date.
Ask how the deposit is handled if a condition is not met. Wording matters, so check with a BC lawyer before you sign anything binding.
Entire agreement and the formal lease
Watch the entire agreement clause in the formal lease. Once that lease is signed, terms that stayed only in the offer can be wiped out. Law Society of BC checklists flag entire agreement and merger with the offer as points to handle in the general provisions.
Put every money term and every protection you care about into both documents, and have a BC lawyer confirm the carry-over before you sign the lease.
Questions to ask before you sign
- Is this binding?
- What conditions protect me?
- What's left for the lease?
- When is the deposit refundable?
- Have I seen the landlord's lease form?
Keep reading
Related terms: Letter of intent (LOI), Subject clause, Deposit
- Leasing commercial space in BC: a tenant's guide
- Zoning, permits and licences for commercial space in Vancouver
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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.