Karsten Lee and Robert Eisenberg discuss the application of lease clauses in leases, address issues raised in Target and Sears` insolvency cases in Canada, and provide advice to ensure your agreement is narrow and applicable. While roommate agreements have no legal authority, Majid suggested that tenants should write one among themselves before moving in to clarify what they will do if someone leaves to avoid conflict. Robert Eisenberg: But there are other more creative remedies you can have. And again, anything under the sun that you can imagine could be a co-tenancy remedy. One of the ones I`ve seen is where a tenant works below a fixed minimum wage, they say, “Look, if there`s a lease, you and I will share the risk here, owner. I won`t pay my fixed minimum rent anymore. Instead, I will only pay you a percentage of rent. They will therefore receive a percentage of my turnover. The idea of being there, look, there is a tenant error. I guess there will be a decrease in traffic to the center. There will be a drop in my sales, so I will only pay you a percentage of what I actually sell. You will not have a guaranteed rent. We`ll share the wounded together. Robert Eisenberg: Well, I`d love to.
So basically, a co-location clause is a precondition for the minimum occupancy of a development or a shopping mall or a building, or something like that. And if these minimum thresholds are not met, a tenant will receive an advantage. So you know, either a right to resign, or a right to darkness, or a rent cut, something like that. There are two main types of co-locations that we see most often. These open co-locations and co-tenancies in progress. An opening tenancy agreement therefore generally means that something must happen before a tenant is forced to open at stores or start paying rent. And a permanent tenant is where a tenant is open, but if something happens or doesn`t happen, then the tenant may decide to exercise his rights or not. Robert Eisenberg: So, at this point, for an owner, you have to say, “Look, either you`re a pity or you`re not.