Features of a commercial property lease
Whether you’re a landlord or a tenant, understanding what’s included in a commercial property lease is vital to make informed decisions. Reviewing the lease can also be a key step in the conveyancing process for commercial properties. The purpose of the lease is to give the tenant the right to use the building for commercial activities for a certain period. It also outlines the responsibilities of both landlord and tenant during this time. Common features and provisions of a commercial lease typically include:
- A description of the premises, along with boundaries and features.
- Property address.
- Length of the tenancy(start and end dates).
- Responsibilities of both parties for maintenance and repairs.
- Rent information – rate, frequency, type, etc.
- Security deposit.
- Insurance.
- Operating expenses and taxation.
- Dispute resolution.
All the points within the lease can be negotiated between the two parties with the help of their commercial property solicitors. Read ‘What terms are commonly used in a commercial property lease?’ for a more in-depth breakdown of what’s included in the document.
When do commercial property leases become legally binding?
In order to assess your options when entering into a lease agreement, it’s important to know at what point in the conveyancing process the commercial lease becomes legally binding. As is the case with both commercial and residential leases, the agreement is only binding once it has been signed and exchanged by both parties. However, there can be an exception for short fixed term commercial leases, which is why it’s always necessary to get professional legal advice. It’s also important to note that either party can exercise the right to refuse signing the agreement if they believe it isn’t in their interest.
Terminating a commercial lease
Even though the lease is legally binding between the landlord and tenant, it can be terminated. Once the lease comes to its natural conclusion, you’ll have the option to either renew or terminate it. Choosing to terminate the commercial lease is simply a matter of informing the landlord and any relevant legal counsel. There may then be some paperwork to complete to make the decision official. It can also be possible to break a commercial lease early. Although there are a few different ways in which this can be done.
Need conveyancing support with a property lease?
Whether you’re leasing commercial properties or searching for a commercial property for lease, Toomey Legal can provide support. Our team knows exactly what to look for in commercial property leases to help secure the best outcome. What’s more is that we provide fixed fee conveyancing, so no matter how complex the lease, you know what you’re paying. Get in touch if you have any questions.