Heads of agreement review before lease drafting begins

Because this document often sets the commercial direction for everything that follows. Even if it is short or described as preliminary, it can shape the rent deal, term, incentives, fit-out responsibilities, permitted use and renewal structure that later appear in the lease. If something is vague, missing or recorded in a way that does not match the deal you thought you had, it can become much harder to unwind once formal drafting begins. A review at this stage helps you identify the points worth correcting before they become the baseline for the lease.

Common review points include rent and outgoings, lease term, option rights, rent-free periods, fit-out contributions, make good obligations, exclusivity, relocation, assignment, permitted use and any landlord conditions that may affect how you trade from the premises. We also look for drafting gaps, internal inconsistencies and commercial points that may be assumed but not actually written down. That matters because a short heads of agreement can still leave room for disagreement later if the wording is too loose or key items are omitted.

The review depends on the actual document and the commercial setup behind it. For example, the issues can change if the premises are in a shopping centre, if there is a fit-out contribution, if the tenant needs exclusivity, or if the arrangement involves staged access or special landlord approvals. We look at what has been recorded, what appears to be missing, and whether the document reflects the deal in a workable way. If there are side emails, agent summaries or incentive schedules, those can also help us test whether the heads of agreement matches the real position.

Yes. Many heads of agreement come from a leasing agent, landlord form or recycled template. Those documents can be useful as a starting point, but they often record headline terms without fully dealing with the legal or operational consequences. A template may also use broad wording that suits the landlord more than the tenant, or leave important items open for later. We can review that draft, explain where the pressure points are, and suggest changes so the document better reflects the arrangement you actually want carried into the lease.

The timeframe depends on the length of the document, how settled the commercial deal is, and whether there are unusual lease features to consider. Once we have the heads of agreement and any supporting materials, we review the document and provide written advice on the main issues identified. You can then use that advice when responding to the landlord or agent before the lease is drafted. If you later need help with the lease itself or further negotiation support, that would be separate work rather than part of this fixed-fee review.

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