In the course of negotiating a commercial lease, landlords and tenants are usually focused primarily on reaching agreement on the significant business terms relative to one another. Often, the rights of the landlord’s lender are less than paramount in the minds of both the landlord and tenant during negotiations, and addressing the priority of the tenants’ rights relative to present and future property financing is often left to the end of the process, if at all.

But recent cases have reminded the property leasing and mortgage lending bars of the importance of the relationship between lenders and tenants, and of carefully and dutifully stipulating the rights and obligations of all parties.

This article was published in Shopping Centre Leases, 2nd ed. (Aurora: Canada Law Book, 2008) by Harvey M. Haber, ed.

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