If you’re in the real estate industry, you’re probably familiar with the Ontario Real Estate Association (OREA) and the role it plays in regulating leases. Recently, OREA introduced an amendment to the Agreement to Lease that could significantly impact tenants and landlords.
The new amendment to the Agreement to Lease is aimed at addressing the risks associated with cannabis cultivation. It requires that tenants disclose to landlords their plans to cultivate or manufacture cannabis on the property. This includes both medical and recreational use.
Landlords will also have the right to refuse permission for cannabis cultivation, but only if it’s not explicitly mentioned in the lease agreement. This means that if a tenant has already disclosed their intention to cultivate cannabis and it was agreed upon in the lease, the landlord cannot change their mind and suddenly prohibit cannabis cultivation.
It’s important to note that the new amendment only applies to the cultivation and manufacture of cannabis. It does not affect a tenant’s right to consume cannabis on the property. This means that tenants are still allowed to smoke or consume cannabis products as long as it’s legal and done in accordance with the lease agreement.
The amendment also includes a provision for landlords to inspect the property periodically to ensure that the cannabis cultivation is being carried out in a safe and lawful manner. This is to protect both the tenant and the landlord from any potential legal or safety issues.
It’s important for landlords and tenants to review their lease agreements to ensure that they are in compliance with the new amendment. If there is no mention of cannabis cultivation in the lease agreement, it may be necessary to draft an amendment to ensure that both parties are aware of their rights and obligations.
In conclusion, the new amendment to the Agreement to Lease from OREA is an important step towards addressing the risks associated with cannabis cultivation. It provides clarity and protection for both landlords and tenants, as long as they follow the guidelines laid out in the lease agreement. It’s crucial for everyone involved in the real estate industry to stay up to date with these changes to ensure that they are compliant with the law and are able to operate safely and legally.