Retail & Commercial Leases
Things you should know
- Legislation treats leases of retail premises differently from lease of other commercial premises.
- It is vital to ensure that leases are registered when the term exceeds 3 years otherwise they may not be enforceable.
- Your planned use of the premises may require a Development Application to the local council and licences may also be required from other government agencies.
- In some circumstances a lease of premises may require registration of a plan of subdivision.
- You may be required to provide personal guarantees for performance of the obligations of the tenant where your business is conducted by a corporation.
- Whether any personal guarantee is required.
- Recent law changes have put pressure on landlords to disclose accurate financial and management information concerning the premises.
- The minimum 5 year retail lease law has been abolished.
- Tenants do not have to pay for the landlord’s preparation of a retail lease.
The Mulally Mylott Difference:
- We have prepared leases for clients with a range of over 50 years.
- We keep up-to-date with changes in the law.
- We’ve advised on a huge range of property disputes, including offices, grain silos, roads, maritime, hockey rinks, telco, shopping centres, rural property, shared farm agreements, factories, and warehouses.
Why would you need this service?
Retail and commercial leases are critical for businesses as security of title and exclusive possession of the premises is vital to any commercial enterprise.
As a business proprietor you need a valid enforceable lease and to be aware of your rights and obligations under the Lease.
As the owner of retail or commercial premises you need to be confident that the terms of any lease are binding on a tenant and that you have adequate security safeguarding you against loss in the event of non performance or other breaches of the lease.
Retail and commercial leases include a range of obligations that both the tenant and landlord have to abide by and adhere to.
Where a party failed to adhere to its obligations, the other may seek legal action that could result in a court case. You need to be properly advised and represented in such an event.
Potential disputes could include non payment of rent, refusing to leave the property, damage to the property, or the landlord failing to maintain the property and ensure it is safe for habitation.