Quebec Commercial Eviction Process: Rights & Timelines

Unlike residential evictions in Quebec—which are notoriously slow and tenant-friendly—the process for evicting a commercial tenant for non-payment or breach of lease is much more straightforward. However, it still requires following legal procedures through the regular court system rather than the Tribunal administratif du logement (TAL).

Resolving Disputes and Jurisdiction

In Quebec, commercial lease disputes do not go to the TAL. They must be filed in civil court:

• Cour du Québec: For claims under $100,000.
• Superior Court of Quebec: For claims of $100,000 or more, or when seeking an injunction (e.g., an order to force a tenant to keep their store open).

Terminating the Lease for Non-Payment

If a commercial tenant stops paying rent, the landlord has powerful legal tools at their disposal to recover the space and the owed funds.

1. Notice of Default

The first step is always to serve the tenant with a formal written Notice of Default (Mise en demeure). The commercial lease agreement will dictate how many days the tenant has to "cure" the default (usually 5 to 10 days for rent arrears).

2. Termination clause (Clause résolutoire)

A well-drafted commercial lease includes an automatic termination clause (clause résolutoire). If the tenant fails to pay within the cure period specified in the Notice of Default, the lease can be considered terminated automatically without requiring an initial court judgment. The landlord can then demand the tenant leave immediately.

Warning: If the tenant refuses to leave after the lease is terminated, the landlord cannot simply change the locks. The landlord must obtain an eviction order from the court and use a bailiff (huissier) to execute the eviction.

The Landlord's Privilege (Droit de Rétention)

Under the Civil Code of Québec, commercial landlords hold a powerful right known as the "Landlord's Privilege" or right of retention.

To secure the payment of unpaid rent, a landlord has a priority claim over the movable property (inventory, furniture, equipment) that furnishes the leased premises.

Seizure Before Judgment (Saisie avant jugement): If a commercial landlord has reasonable grounds to believe the tenant is about to secretly move their equipment out of the premises to avoid paying rent, the landlord can apply to the court for a "seizure before judgment." This allows a bailiff to immediately lock down and seize the assets inside the building before a trial even happens.

Note: The landlord's privilege generally only covers the equivalent of past-due rent and up to 12 months of future rent.

Ending a Lease Naturally

A commercial lease with a fixed term (e.g., 5 years) simply ends on the final day specified in the contract. No formal eviction notice is required from the landlord if the tenant is expected to leave. However, if the tenant remains on the premises after the lease expires and the landlord continues to accept rent without objection, the lease may be "tacitly renewed" (reconduction tacite) on a month-to-month basis under the same conditions.

If the commercial lease does not have a fixed term (an indeterminate lease), the landlord must provide written notice to terminate it. The minimum notice period required by the CCQ is the same as the rent payment period (e.g., one month's notice if rent is paid monthly).

Tenant Bankruptcy

The rules change dramatically if a commercial tenant files for bankruptcy or insolvency protection. Federal laws (the Bankruptcy and Insolvency Act or the Companies' Creditors Arrangement Act) supersede provincial lease clauses.

• Landlords cannot evict a tenant or seize their assets simply because they filed for bankruptcy.
• A bankruptcy trustee may have the right to disclaim (break) the commercial lease or assign it to a new tenant, despite what the lease says.

How Landager Helps

An effective commercial eviction process starts long before the tenant stops paying. Ensure your leases have strong default and automatic termination clauses. Landager allows you to store and quickly access your commercial leases and guarantor documents, ensuring you can hand a clean file to your attorney the moment a default occurs.

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