Incorporating Doesn’t Protect You From This Commercial Lease Trap

Content

Thinking about moving your business out of the basement and into a commercial space? 🏢 In this episode, Steve sits down with Sikandar Khan, Barrister & Solicitor at ASK Law Firm, to break down exactly what separates a commercial lease from a residential one — and why incorporating your business doesn’t automatically protect you from personal liability.

From offer to lease vs. the lease itself, to personal guarantees, indemnities, and what happens when a business fails mid-term, this is the conversation every small business owner and entrepreneur needs before they sign.

âś… Commercial lease vs residential lease: what actually changes
✅ Offer to lease, agreement to lease, and the lease itself — the sequence explained
âś… When to bring in a lawyer (and when your realtor already has you covered)
âś… Sole proprietor vs incorporated: when to make the switch
✅ Personal guarantees vs indemnities — and why landlords ask for them
âś… What happens if your business fails partway through a 5-year lease

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0:00 – Intro
1:03 – Meet Sikandar Khan, Barrister & Solicitor at ASK Law
2:47 – Sikandar’s path from Pakistan to practicing law in Canada
6:22 – Commercial lease vs residential lease: the basic difference
8:22 – Offer to lease vs agreement to lease vs the lease itself
10:40 – The most common misunderstanding: agreement to lease isn’t the lease
12:19 – When lease terms don’t match the offer to lease
16:16 – Disclaimer: this isn’t legal advice
17:00 – When should you actually engage a lawyer?
25:12 – Sole proprietor vs incorporating before signing a commercial lease
27:33 – Real case: landlord demands a 100% personal guarantee
31:25 – Indemnity vs personal guarantee, explained
34:10 – What happens when your business fails mid-lease
36:44 – Assigning a lease — and why you can stay on the hook anyway
41:13 – Where to find Sikandar Khan and ASK Law
42:41 – Outro

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In 2011, Ariel Kormendy and Adrian Trott formed The Kormendy Trott Team, now often referred to as KT (thanks to our logo!). The foundation of KT is built on providing unmatched value and attention to detail in everything we do. From our ever-expanding, comprehensive list of exclusive services to our expertly trained team, you will receive the highest level of care throughout your entire real estate journey.

Originally a team of two in Milton, Ontario, the KT Team has grown into a large team of exceptional REALTORS®, a client-care department, and now includes KT Media, KT Commercial, and our sister company, Renti, allowing us to provide our clients with a complete lineup of genuine, professional, and proven services across Halton Region, Peel Region and the surrounding Regions within the Greater Toronto Area.

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COMMENTS

HOSTS

Chris Behie

After buying and selling several homes with The KT Team, Chris knew he had to be part of it. A top performer at Toyota Canada for years, he shifted gears to real estate and hasn’t looked back. Known for his sharp communication, negotiation skills, and down-to-earth approach, Chris helps clients navigate the buying and selling process with confidence—especially families juggling busy home lives like his own. When he’s not closing deals, you’ll find him in Milton chasing adventures (and his two boys).

Steve Bruman

Steve Bruman is a Milton real estate agent known for his standout service, quirky humour, and endless patience—especially with first-time buyers and seniors. ASA-certified and a proud empty-nester, Steve brings energy, experience, and a personal touch to every real estate journey.

Robin Dasilva

Robin Dasilva is a trusted REALTOR® serving Milton and the surrounding area. Known for clear communication and steady guidance, she helps clients navigate every stage of the buying and selling process with confidence. Through her writing, Robin also shares practical insights and real-world experience to help homeowners make informed real estate decisions.
[podcast_hosts]

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