Prior to entering into a lease, tenants in some provinces are careful to obtain a non-disturbance agreement from prior mortgagees ensuring that the lease will remain in effect notwithstanding any exercise under the mortgagee’s security. In Quebec, this is not necessary according to the decision of its Court of Appeal in the case of Royal Trust v. Pinkerton Flowers.1 Rather than a systematic cancellation of leases registered after the security, the Court suggests that mortgagees can protect themselves against the risk of leases which materially reduce the value of the property by bringing an application under Article 2734 of the Civil Code of Quebec (“CCQ”). Mortgagees can also protect against the risk of leases entered into with the intent to defraud by bringing a Paulian Action under Article 1631 of the CCQ. Tenants, however, should still take precautions before entering into a lease and should check the title register. Leases registered after a prior notice of exercise of a hypothecary right will nevertheless be subject to cancellation. Your thoughts - vos pensées?