The proposed Cannabis Act was presented to the House of Commons in April 2017. Once it becomes law, will a landlord be able to restrict or limit the activities of a tenant that involve selling or distributing marijuana?
Landlords and tenants enjoy considerable leeway in their relationship, as long as they do not disturb public order or contravene mandatory provisions of the law. Clauses in a lease concerning the intended use of a building and of rented premises can thus regulate permitted activities.
The question is more complicated for existing leases. As a general rule, the landlord and the tenant cannot change the intended use of rented premises. A tenant managing a souvenir shop in Old Montreal, for example, cannot suddenly decide to metamorphose into a cannabis merchant. Can he, however, add cannabis or marijuana-related products to his inventory of goods for sale?
The Court of Appeal has confirmed that tenants must submit to the management powers of the landlord, even if that imposes limits to their enjoyment of the rented premises and restricts certain activities. The tenant could thus see his freedom of trade limited by the new regulations. On the other hand, the onus is on the landlord to demonstrate that restrictions on the sale or distribution of cannabis are reasonable and do not contravene the provisions of the lease. A landlord thus cannot limit the activities of his tenant simply because he disagrees with the type of activities pursued by the latter.
As the Court of Appeal noted in its judgement in that regard, we must keep up with the times.
Me Élise Veillette, avocate et madame Marya Repac, stagiaire
Cain Lamarre