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A Shared Facilities Agreement sets out the rules and responsibilities when multiple parties share building spaces, equipment, or infrastructure. You'll often see these in multi-tenant commercial buildings, office complexes, or industrial parks across Canada where owners need to manage common areas like lobbies, parking lots, and utility systems.

These agreements spell out critical details like cost sharing, maintenance duties, access rights, and dispute resolution. They're particularly important in provinces like Ontario and British Columbia, where commercial property laws require clear documentation of shared facility arrangements. The agreement helps prevent conflicts by establishing how decisions get made and how costs get divided among all users.

You need a Shared Facilities Agreement when multiple parties share significant physical spaces or infrastructure. This commonly occurs when buying into a multi-tenant commercial building, joining an industrial park, or developing a mixed-use property where tenants share elevators, parking, or utility systems.

The agreement becomes essential before occupancy begins or ownership changes hands. For example, when several medical practices share a clinic's waiting room and diagnostic equipment, or when multiple retailers split maintenance costs for a shopping center's common areas. Having clear terms in place prevents disputes and ensures fair cost allocation under Canadian property laws.

• Basic Common Area Agreement: Covers shared spaces like lobbies, elevators, and parking in commercial buildings. Focuses on maintenance and cost-sharing.
• Infrastructure Sharing Agreement: Used for shared utility systems, HVAC, or telecommunications infrastructure between multiple occupants.
• Mixed-Use Facility Agreement: Addresses complex arrangements where retail, office, and residential tenants share facilities with different access needs.
• Cost-Plus Agreement: Emphasizes detailed cost allocation formulas based on square footage, usage patterns, or specific benefit received.
• Service-Level Agreement: Includes specific performance standards for shared facility maintenance and operations.

• Property Owners: Initiate and sign Shared Facilities Agreements when subdividing properties or creating multi-tenant spaces.
• Commercial Tenants: Review and comply with terms for shared space usage, cost contributions, and maintenance obligations.
• Property Managers: Implement and oversee daily operations, maintenance schedules, and cost allocation systems.
• Real Estate Lawyers: Draft and review agreements to ensure compliance with provincial property laws and regulations.
• Facilities Managers: Execute maintenance plans and coordinate shared services according to agreement terms.
• Building Engineers: Maintain shared mechanical systems and infrastructure as specified in the agreement.

• Property Details: Map out all shared spaces, equipment, and infrastructure that need to be covered in the agreement.
• Cost Analysis: Calculate maintenance expenses, utility costs, and determine fair allocation methods among parties.
• Usage Patterns: Document how different parties will access and use shared facilities, including hours and scheduling.
• Maintenance Plan: Outline responsibilities for repairs, regular upkeep, and emergency procedures.
• Insurance Requirements: Identify necessary coverage levels for shared areas and equipment.
• Decision Authority: Establish clear governance structure for facility-related decisions and dispute resolution.
• Documentation Review: Gather existing property records, building plans, and relevant municipal regulations.

• Identification Section: Full legal names and addresses of all parties sharing the facilities.
• Facility Description: Detailed inventory of shared spaces, equipment, and infrastructure covered.
• Cost Allocation: Clear formulas for dividing maintenance, repair, and operating expenses.
• Access Rights: Specific terms about facility usage, hours, and scheduling protocols.
• Maintenance Terms: Responsibilities for upkeep, repairs, and emergency procedures.
• Insurance Requirements: Mandatory coverage levels and liability provisions.
• Dispute Resolution: Process for handling disagreements under provincial law.
• Term and Termination: Duration, renewal options, and exit procedures.

A Shared Facilities Agreement differs significantly from a Facilities Management Agreement in several key aspects. While both deal with property management, they serve distinct purposes and involve different relationships.

• Scope of Control: Shared Facilities Agreements focus on coordinating multiple parties' shared use and costs, while Facilities Management Agreements delegate operational control to a single management company.
• Party Relationships: Shared Facilities Agreements create mutual obligations between co-users, whereas Facilities Management Agreements establish a service provider relationship.
• Cost Structure: Shared Facilities Agreements divide expenses among users based on predetermined ratios, while Facilities Management Agreements typically involve management fees paid to a service provider.
• Decision Making: Shared Facilities Agreements require consensus among parties for major decisions, but Facilities Management Agreements grant operational authority within defined parameters to the management company.