09/01/2026
When a commercial landlord defaults on their mortgage, commercial tenants face significant uncertainty regarding their tenancy and lease enforceability. Unlike residential tenancies, commercial leases in Ontario do not automatically bind a lender who takes possession under a power of sale or foreclosure unless the lender consented to the lease or a Subordination, Non-Disturbance, and Attornment (SNDA) agreement is in place. Without an SNDA, a lender enforcing its security may choose not to recognize the lease, leaving tenants vulnerable to eviction or forced renegotiation.
Read our latest blog post to understand how landlord mortgage defaults impact commercial tenancies and how tenants can protect their leasehold interests in Ontario: https://ow.ly/A7lF50ZHtXT
Learn how landlord mortgage default may affect commercial tenants, rent payments, lease priority and possession rights in Ontario.