If you’re about to sign a commercial lease using the Ontario Real Estate Association (OREA) Form, you might assume it’s a standard, well-balanced document that protects both landlords and tenants. But here’s the truth:
📌 The OREA Form Commercial Lease Agreement is designed with landlords in mind, not necessarily with your business’s best interests at heart.
Before you sign, here’s what you need to know about the potential risks—and why getting your lease reviewed by a lawyer could save you thousands in hidden costs and legal headaches.
What Is the OREA Commercial Lease Agreement?
The OREA Form Agreement to Lease – Commercial is a standardized lease template commonly used by real estate agents and landlords for commercial properties in Ontario.
It provides a basic framework covering:
✔️ Lease term and rent amount✔️ Renewal options
✔️ Basic maintenance obligations
✔️ General rights and responsibilities of landlords and tenants
Sounds good, right? Not so fast. While this form covers the basics, it often lacks the critical legal protections needed to prevent costly disputes.
The 5 Biggest Problems with the OREA Commercial Lease Agreement
1️⃣ It’s a One-Size-Fits-All Document
The OREA lease form is generic, meaning it doesn’t account for the specific needs of different types of businesses. Whether you’re running a restaurant, a medical clinic, or a retail store, the legal details matter—and this form doesn’t include them.
✅ Example: A café tenant signed an OREA lease assuming they could install a patio, only to find out the lease didn’t permit any exterior modifications without landlord approval—leading to months of delays and lost revenue.
2️⃣ Maintenance & Repair Costs Are Often Unclear
Many tenants sign OREA leases without realizing they may be responsible for expensive repairs. The wording is often vague or favors the landlord, leaving tenants stuck with unexpected costs.
✅ Example: A business owner signed an OREA lease assuming the landlord would cover HVAC repairs. A year later, the HVAC system failed, and the tenant was forced to pay $15,000 out of pocket because the lease wording put the responsibility on them.
3️⃣ Rent Increases and Operating Costs Can Be Buried in Fine Print
Many tenants assume the rent stated in the lease is their final cost—only to be hit later with unexpected increases in:
❌ Common area maintenance (CAM) fees
❌ Property taxes
❌ Utility charges
✅ Example: A retail store signed an OREA lease with a “proportionate share” clause. They later discovered they were responsible for a significant increase in operating costs when the landlord renovated the building.
4️⃣ No Protection If the Landlord Sells the Property
What happens if the landlord sells the property? Will the new owner honor your lease agreement? The OREA lease form often doesn’t include strong protections for tenants in this scenario.
✅ Example: A clinic signed an OREA lease assuming they had security for five years. After two years, the landlord sold the building, and the new owner gave them six months to vacate due to a redevelopment clause.
5️⃣ Limited Exit Strategies for Tenants
If you need to relocate, downsize, or sell your business, does your lease allow it? Many OREA lease forms:
❌ Prohibit subletting or assignment without landlord approval
❌ Lack early termination clauses, meaning you’re locked in
❌ Include harsh penalties for breaking the lease early
✅ Example: A business owner needed to shut down due to unforeseen circumstances. Their OREA lease didn’t allow for an early termination clause, and they were forced to keep paying rent for two more years, even though they were no longer operating.
Why a Lawyer-Drafted Lease Agreement Is the Right Option
Instead of relying on the OREA lease template, a custom-drafted commercial lease ensures:
✔️ Clear responsibilities for maintenance and repairs
✔️ Transparent rent increases and operating costs
✔️ Protection if the property is sold
✔️ Flexibility for subleasing, expansion, or early termination
✔️ Stronger legal protection in disputes
📢 Before You Sign Anything—Book a Lease Review Today! 📢
🚨 The OREA Commercial Lease Agreement is NOT designed to protect tenants—it’s designed for simplicity. Before you commit to a long-term lease, make sure it works for you, not just the landlord.
A lawyer can:
✅ Ensure your lease terms are fair and protect your business
✅ Negotiate stronger terms that could save you thousands
✅ Prevent future legal disputes and hidden costs
💡 A bad lease can cost you tens of thousands. A lawyer’s review can save you from that risk.
📅 Book a lease review consultation today and ensure your business is fully protected.