Romano Legal Pty Ltd

Solicitors & Conveyancers

 

Commercial/Retail Lease
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Commercial and Retail Leases

When entering into a Commercial or Retail Lease you enter into a binding contractual agreement which obligates you to a substantial financial commitment. Therefore, it is essential that you are fully aware of your rights and your obligations under the lease before you commit to a long term obligation. It would be prudent to consult a solicitor before you sign anything. 

A Commercial or Retail Lease is nearly always prepared by the Lessor's (Landlord's) solicitor on the instructions of the landlord. It is the job of the landlord's solicitor to look after the landlord's interest. The cost of preparing the lease, however, is usually paid by the tenant (lessee) unless it is a lease over premises used as a Retail shop. The Retail Leases Act provides that the cost of preparing a Retail Shop Lease is paid by the landlord. The tenant always pays for his/her own legal costs.  

Market Rent 

As the rent payable is the principal financial commitment you are about to make in signing a lease, it would be prudent to investigate what the market value of the premises is. This investigation might be as easy as checking what rents are being paid by the neighbouring shopkeepers. If the neighbours have been leasing their premises for many years, you may need to make some adjustment in arriving at the present market rent. The local real estate agents will be able to give you some information on what is being paid locally. Finally you might want a professional evaluation but that will cost you money. Check it out with licensed valuers.

Negotiate Terms of the Lease

The success of your business is reliant on a lease that provides you with stability of location combined with just and reasonable terms and conditions. Your lease is so crucial to your business  it is well worth spending time and effort in negotiating the terms. Negotiate directly with the landlord or enlist the help of your real estate agent and your solicitor. Negotiable terms include but are not limited to:

Term of the lease; 

Option periods available;

The amount of the rent; 

Basis of Periodic rent reviews;

Amount of outgoings payable by the Tenant;

Permitted use of the property; 

Bond or bank guarantee applicable;

What, if any repairs or updates to the building you are expected to undertake.  

We will assist you with all the necessary negotiations. Contact Peter Romano for a full discussion.

 

Professional Advice, Competitive Price

Contact   Romano Legal Pty Ltd

Phone:  + 61 2    9569 3177

Postal Address:

 

PO Box A111 

ENFIELD SOUTH  NSW  2133

 

OR        

peter@romanolegal.com.au

Fax:      + 61 2    9550 0245

Office address:   Suite 8, 296 Marrickville Road,         

                                  MARRICKVILLE, NSW, 2204

 

More Information: 

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