Quebec Commercial Required Disclosures

In the commercial leasing space, the rigorous mandatory disclosure forms found in residential real estate (like Quebec's "Section G") disappear. Commercial leasing operates on the assumption that both the landlord and the commercial tenant are sophisticated business entities capable of conducting their own due diligence.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Commercial lease laws vary significantly from residential laws. Always consult a licensed attorney in Quebec for advice specific to your business situation. Information last verified: March 2026.

No Mandatory Government Forms

The Tribunal administratif du logement (TAL) has no jurisdiction over commercial leases. Therefore, there is no standardized, state-mandated form detailing what a commercial landlord must disclose to a prospective tenant.

However, under the overarching principles of the Civil Code of Québec (CCQ), landlords are bound by the duty to act in good faith prior to, during, and after the formation of the contract.

Duty of Good Faith and Latent Defects

The CCQ requires all parties to conduct themselves in good faith (Article 1375). A commercial landlord cannot deliberately conceal vital information that would cause the tenant to walk away from the deal or demand a significantly lower rent.

Latent Defects (Vices Cachés)

A commercial landlord must provide a warranty against latent defects. A latent defect is a serious flaw in the property that:

1. Existed before the lease was signed.
2. Was unknown to the tenant.
3. Could not have been discovered by a prudent tenant during a normal inspection.
4. Renders the premises unfit for the intended commercial use, or significantly diminishes its usefulness.

If a commercial landlord knows the building's foundation floods every spring but fails to disclose this to a prospective retail tenant, the landlord would be liable for damages. Note: Commercial leases often contain clauses heavily limiting this warranty, stating the tenant accepts the premises "as is" or "tel quel," though there are strict limits to how much gross negligence a landlord can contract out of.

Environmental Disclosures

Environmental liability is one of the most significant risks in commercial real estate. If a commercial property manager is leasing an industrial space, a gas station, or a dry cleaner, there are significant environmental obligations.

The Land Protection and Rehabilitation Regulation

Under Quebec's Environment Quality Act, if a property has been used for certain industrial or commercial activities and the use is being changed, or if the land is known to be contaminated, characterization studies and rehabilitation plans may be required.

A commercial landlord must disclose known environmental contamination. Failure to do so can result in the tenant successfully breaking the lease and suing for damages, especially if the contamination prevents them from operating their business or securing financing.

Zoning and Destination of the Property

The commercial landlord must ensure that the property can actually be used for its general "destination" as a commercial space.

However, it is typically the tenant's responsibility to ensure that their specific business (e.g., a cannabis dispensary, a loud boxing gym, a heavy industrial manufacturer) is permitted under local municipal zoning bylaws. A well-drafted commercial lease will explicitly state that the landlord makes no representations regarding zoning, and the tenant assumes all responsibility for obtaining necessary municipal permits.

How Landager Helps

Commercial due diligence requires tracking surveys, environmental Phase I and Phase II reports, and municipal zoning confirmations. Landager's property document repository allows landlords to securely attach architectural plans and environmental certificates directly to the property's profile, ensuring you have all necessary disclosures ready during lease negotiations.

Back to Quebec Commercial Landlord-Tenant laws Overview.