A lease serves as a legal document that regulates the relationship between a lessor/landlord and a lessee/tenant concerning a property. Leases vary in complexity, size, and terms.
Having a lawyer with leasing experience review the lease for you and advocate changes on your behalf is essential. Entering into a lease often represents a significant and long-term financial commitment for many businesses, typically spanning over three years with renewal options.
It’s crucial to review lease terms carefully to comprehend your obligations fully. A retail and commercial leasing lawyer can ensure necessary amendments are made to protect your interests, given the potential financial penalties for not fulfilling the lease term.
In most cases, you can seek to assign the lease to a third party or sub-let part of the premises. However, obtaining lessor/landlord consent for assignment or sublease isn’t guaranteed, typically requiring you to demonstrate the third party’s financial position is similar or better than yours.
Negotiating Lease Terms
Negotiating lease terms may seem excessive, but it is vital. Clients often enter into a Lease or a ‘heads of agreement’ document without prior legal advice, potentially overlooking unfavorable provisions and having to deal with issues later.
Engaging a lawyer from the outset, even if they’re not directly involved in negotiations, is crucial. Reviewing the ‘heads of agreement’ before signing is vital, as it may contain terms such as covering the lessor/landlord’s lease preparation costs or harsh rent review clauses, which can complicate future amendments.
Each lease is unique, ranging from standard form leases with balanced terms to heavily landlord-favored agreements. Regardless of complexity, seeking legal counsel to review and advise on amendments is crucial.
Common clauses to negotiate in a lease include rent, rent review methods, outgoings, security deposits or bank guarantees, personal guarantees, make-good clauses, legal costs, and compliance with retail lease regulations.
For lease preparation, review, or renegotiation, contact Legalease Lawyers on 0402 121 124 to guide you through the process.
