We recently posted about the Canada Emergency Commercial Rent Assistance (“CECRA”) for small businesses (see our post here).
On May 29th, the B.C. government issued a new order protecting businesses that qualify for CECRA from eviction by their landlords if the landlord chooses not to enter into a rent reduction program (as required by the CECRA) or otherwise elects not to apply for CECRA. In particular, section 4 of the order restricts those landlords from doing any of the following in response to a tenant failing to pay rent when due without the tenant’s consent:
- exercising any contractual or other rights of re-entry;
- giving the tenant notice of termination of the lease;
- distraining the tenant’s property; or
- taking steps to rent out the leased property on the tenant’s behalf.
However, these restrictions do not apply:
- to a lease if the tenant has abandoned or deserted the leased property;
- to a lease whose term expired before the date the order was made; or
- if the term of the lease expires during the period when the order applies, the restrictions cease to apply upon expiry of the lease term.
The order will be in effect until the earlier of the expiration of the B.C. state of emergency, or the last date of the CECRA program. Please contact us with questions about how this order may affect your business.
Review the order here.
Government news release: https://news.gov.bc.ca/releases/2020FIN0034-000988