Leasehold Covenants - Do Leasehold Covenants Run With The Land?
May 20, 2010 | Article
Written by Natalie Vukovich
Shopping Centre Legal Update, Vol. 30, Issue 1
Many landlords and tenants believe that upon a sale of a property, the transferee of the landlord's interest is obliged to perform all of the landord's covenants under the lease and to honour all of the rights granted to the tenant thereunder. Similarly, they believe that upon an assignment of a leasehold interest by the tenant, the assignee is obliged to perform all of the tenant's covenants under the lease and entitled to demand performance of all of the covenants of the landlord. In Canadian common law jurisdictions, this is not necessarily the case. Leasehold covenants that attach only to the parties to the lease might not transfer to the assignee of either party- they might fall away.
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