Question: You work with a client who has requested that you prepare an offer to lease on a retail space. You meet with the client to

You work with a client who has requested that you prepare an offer to lease on a retail space. You meet with the client to draft the offer, and they notice that the pre-printed additional rent charges clause is very detailed and ask you to explain it.

Which statement is an accurate explanation of the additional rent charges clause?

Select one answer:

A. The clause is used to define the additional costs and expenses the tenant is obligated to pay the landlord as required under the Commercial Tenancies Act, and these mandatory costs include internet, water, property taxes, and all fire insurance.

B. The clause is used to define the additional costs and expenses the landlord is obligated to pay during the property's tenancy as required under the Commercial Tenancies Act, and these mandatory costs include internet, water, and property taxes.

C. The clause is used to determine the proportionate share of additional costs and expenses between the landlord and the tenant, and these costs and expenses can include utilities, maintenance of the property, Realty taxes, and insurance.

D. The clause is used to determine equal apportioned shares to be paid by the landlord and the tenant on all of the taxes owed on the landlord's tenanted properties, and these can include outstanding property taxes, property insurance taxes, and HST.

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