Entering into a Business Lease
A lease is an agreement between a landlord and a tenant granting rights to a tenant to occupy premises owned by the landlord. Our commercial lawyers can assist you in all aspects of leasing including negotiating and entering into a lease, exercising an option to renew, assigning or transferring your lease, disputes relating to leases, or matters relating to a licence or a sublease. If you are entering into a lease in conjunction of purchasing a business you may also want to read our purchase of business page, or our franchise page.
Leases for businesses generally fall into one of two categories: Retail Leases and Commercial Leases.
Retail Leases
As the name suggests, relate to leases over retail premises. To answer whether a specific lease is a retail lease or not, it is necessary to refer to the Retail Leases Act. If a lease is governed by the Retail Leases Act there are significant obligations of disclosure on each of the landlord and tenant. A number of other rights and responsibilities arise from the operation of the Retail Leases Act. This can be a complicated area of law for business owners and care must be taken when entering a Retail Lease.
Business or Commercial Leases
Business Leases that are not covered by the Retail Leases Act are generally referred to as Business or Commercial Leases. Whether you are the landlord or tenant, it is imperative to ensure that all necessary considerations are addressed prior to entering a Commercial Lease. Our commercial lawyers are experienced in drafting effective commercial leases as well as advising tenants on their rights and responsibilities under a lease.
Landlords/ Lessors
A commercial or retail lease is usually complex and lengthy as it deals with many different situations which may or may not occur during the term of the lease. Your lease will be subject to various state legislation and if the lease is not properly drafted your position may be compromised, as the legislation generally protects the tenant more than the landlord. Our commercial or retail leases will ensure that your rights are not compromised in areas such as:
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Collecting unpaid rent and or other moneys owed under the lease
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Return of your premises and claim for future losses
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Assignment or transfer of lease
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Rent review, bonds, insurance
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Director’s guarantees or personal guarantees
Tenants/Lessees
Securing your rights to the premises of your business is often the key in operating a successful business. Our commercial lawyers understand that the premises will directly affect the value of your business therefore a lease is an important document which you should seek professional assistance with. It is vital that you understand the contents of the lease so that you can make an informed decision when entering into a legally binding contract. Prime Lawyers will assist you in pointing out some of the prominent features of the lease such as:
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Duties and liabilities as a tenant
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Money you are liable to pay including outgoings and levies
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Assigning or transferring the lease
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Damages to the property
We will also assist you in meeting procedural requirements of entering into a lease and ensure that the process is handled in an efficient manner.
Commercial Sub-Leases
Both Retail Leases and Commercial Leases can include sub-leases. A sublease is where a tenant leases some or all of the leased premises to a further party, who is called the sub-tenant. Retail subleases are also governed by the Retail Leases Act. Our commercial lawyers can advise you on your rights and responsibilities under a sub-lease.
Negotiating Lease Terms
As well as advising you on the proposed terms of a commerciallease, our commercial lawyers can also negotiate with the other side to amend, delete or add terms so that the lease is more favourable to you. This may include terms such as options to extend a lease at your discretion, lower/higher rental proceeds, restraint of trade clauses and trading hour times. There are an array of issues which you should consider which can be easily overlooked.
Why Choose Prime Lawyers
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Experience - We have acted for thousands of landlords and tenants in preparing and advising them on commercial leases.
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Costs – Fixed flat fees in most leasing matters. In other matters we will provide you with an accurate costs estimate so there are no unpleasant surprises.
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Efficient – We understand that when you’re entering into a new lease or issuing a new lease (if you’re a landlord), time is often a constraint. Be assured, we will deal with your matter as efficiently as possible without compromising the quality of our legal advice so you can get on with business.
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Clear Communication – We will keep you informed on the progress of your matter, every step of the way. Whenever you need to contact us, we’re just a phone call away.
Our commercial lawyers can assist you whether you are the landlord or tenant in a commercial lease. Please call us on (02) 9521 2222 if you have any question regarding a commercial or business leasing issue. You can also send your enquiry online now and we will contact you shortly.