Commercial lease review
Commercial leases create legal obligations between a landlord and a tenant, often lasting for many years. As a tenant, it is important that you have an expert lawyer review your lease so that you understand exactly what you’re committing to.
3 THINGS YOU NEED TO KNOW
- Heads of agreement: It is common for tenants and landlords (usually through the landlord’s real estate agent) to negotiate the key terms through a short 1-2 page document called a “heads of agreement” or something similar.
- Negotiating key terms: Typically the heads of agreement will be used to settle the key commercial terms, such as the rental amount, how rent increases will be calculated, any rent free periods, the term of the rent, any extension periods and what the premises can be used for.
- Finalising the lease: The commercial terms will then be set out in a longer document drafted by the lawyers. This document is the lease. The lease creates the legal and binding relationship between you and the landlord.
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