Often Bailiffs are approached by Ontario Commercial Landlords, whose tenant is in arrears, with the request “Lock Them Out”. Their intent being to hold the goods located inside the leased premises as ransom or to liquidate the goods to recover rental arrears.
As a result we are regularly explaining that among the remedies available to Ontario Commercial Landlords the procedures known as TERMINATION (a.k.a. lock them out) and DISTRESS (seizure / sale) are inconsistent remedies in law, meaning they cannot be conducted simultaneously.
Recent court precedence takes the position that when a landlord, while intending to distress, changes the locks (preventing the tenant access to the premises) they are deemed to have terminated the lease. In addition to forfeiting the goods a landlord may also be liable to the tenant for costs, loss of business and punitive damages.
When a Commercial Tenant or a Industrial Tenant has failed to pay rent, the Landlord can Distrain against the tenants goods:
- We Offer Certified and Accredited Appraisals
- FREE Lease Consultations
- FREE Landlord Consultations
- We will Liquidate and Proceed for the Sale of Inventory
- We Provide Storage Facilities & Security when required to protect the goods
- Commercial Distraints are normally carried out without cost to you the landlord.
- $ 0 Cost to the Landlord when tenant's ASSETS/INVENTORY is sufficient to cover rental arrears and bailiff fees and disbursements.
- When inventories do not quite cover all costs, a suitable fee will be worked out, in advance, between the landlord and Bailiff.
A landlord can hire a Bailiff to seize and dispose of a tenant's property that is contained within the rented premises. The landlord is not required to give advance notice of seizing the tenant's property, unless the lease provides for it. However, Ontario Bailiffs are required to notify the tenant of the distress and the sum of monies required to cure the default before proceeding to sell the seized property.
see our Pricing Page for more details
Before disposing of seized property, the Bailiff must hold it for five days. If the proper payment is made by the tenant in this five day period, the Bailiff is not permitted to sell the tenant's property. Otherwise, after the proper appraisals are made, the property can be sold. There must be 2 independent accredited personal property appraisals done before liquidation of the assets can be sold.
January 1st – rent due and not paid
January 2nd or later – seize tenant's property and notify the tenant of intent to dispose
Five days after seizure – the Bailiff must obtain 2 independent- Accredited Personal Property Appraisals. Once the Certified Appraisal Reports are finished, the goods can be sold privately; by auction or in most cases, they can be disposed of. This happens not unless proper removal of the goods has not been made before the 5 days, or suitable arrangements to remove the goods from the premises.