A commercial tenant in BC occupies space under a registered 10-year NNN lease with 5 years remaining. The landlord sells the building. What happens to the existing lease?
Correct Answer
A) The lease runs with the land and binds the new owner for the remaining 5 years
A lease registered on title is an interest in land that binds a purchaser, so the new owner takes the building subject to the remaining 5 years. Registration matters: under the Land Title Act ss. 20(3), 23(2)(d) and 29(2)(d), only a lease of 3 years or less with actual occupation is protected without registration, so an unregistered 10-year lease may not bind a purchaser.
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