At Stinchcombe Haney Legal we can act for you in all parts of the leasing process, in particular we can:
- draft a Lease Agreement for Landlords wishing to lease their commercial premises;
- review and provide you with advice of any Commercial Leases or Lease Agreements;
- we can help cut through the paperwork and make sure that you are not entering into a deal that you will later regret
negotiate the terms of a Lease in order to ensure the lease reflects the commercial terms agreed to; - assist you in complying with your obligations under the law and your lease;
assist and resolve lease disputes; and - we always ensure that your interests are fully protected.
If you require a Lease Agreement, you intend on entering into a Commercial Lease, or if you require legal advice with regards to Leases, get your FREE QUOTE from Haney Lawyers.
TENANTS
It is extremely important that you have an experienced Commercial Lawyer to review your lease before entering into an Agreement that may have a long term negative effect on your business.
As leases are generally drafted in favour of the Landlord, it is imperative to ensure that there are no hidden lease terms that will later have a negative effect on your business.
You should consider:-
The initial rent and the method of increasing the rent require reviewing, as rental costs are a significant proportion of overheads in any business.
Do you wish to be able to transfer or assign the lease if the business is sold?
Do you have an option to renew the lease?
The amount of outgoings and other charges for which you may be liable.
If you are in breach of the lease, including failure to pay rent or other terms of the lease, what are the consequences?
Is there an obligation to paint/renew the floorings if you vacate the premises?
Is there any electrical equipment such as air-conditions which are your responsibility?
AGREEMENT TO LEASE
If you are proposing to enter into a new commercial premise that has not been previously leased, you may be required to sign an “agreement to lease”. These are legally enforceable contracts that bind the parties to accept a lease at a later time.
It is very important that you obtain legal advice before signing these documents as they may contain unusual or unfair terms that will end up being enforceable against you. Before you sign such an agreement, it is important to have the terms and conditions negotiated by a Leasing Lawyer to reflect a reasonable commercial investment.
RETAIL SHOPS LEASES
In Queensland, the Retail Shop Leases Act 1994 (the Act) sets the minimum standards for Retail Shop Leases. We are able to provide information to assist Tenants to be familiar with the requirements of the Act.
We are able to provide you with an understanding of your rights and responsibilities concerning your Retail Shop Lease.
LEGAL ADVICE REPORT
Before you enter into a retail shop lease, the law requires prospective Tenants to obtain a Legal Advice Report which must be provided to the Landlord prior to entering into the lease. In order to protect your financial interests, a lawyer must provide advice regarding the legal meaning and effect of the terms and conditions of the lease.
As experienced commercial lawyers, we can assist in providing Tenants with a Legal Advice Report explaining your rights and obligations under the lease, namely:-
How rent is calculated and reviewed;
Your outgoings liability;
Special or unusual conditions included in the lease;
The term of the lease and any right to extend the term;
Obligations at the end of the lease;
Permitted use of the premises;
The consequences should you breach the lease.
If you lease more than five retail shops, you do not need to provide a Legal Advice Report.
FINANCIAL ADVICE REPORT
In addition to the Legal Advice Report, a prospective tenant must also obtain a Financial Advice Report by a qualified accountant to provide to the Landlord.
A qualified accountant is to provide advice regarding the tenant’s financial rights and obligations under the lease.
If you lease more than five retail shops, you do not need to provide a Financial Advice Report.
DISCLOSURE REQUIREMENTS
At least seven days before entering into a retail shop lease, both the Tenant and the Landlord must give to each other Disclosure Statements which provides further information not otherwise ascertainable from the lease itself.
The Tenant’s Disclosure Statement must provide the details of any of the Tenant’s experience in retail businesses.
SELLING A RETAIL SHOP LEASE
If you are a Tenant who wishes to sell your retail business, you will need to transfer (assign) the lease to the prospective Buyer (called the Assignee) subject to the Landlord’s consent.
At least seven days before the Tenant asks the Landlord to consent to the assignment, the Tenant must provide the Assignee a Disclosure Statement. Likewise, the Assignee must also provide a Disclosure Statement to the Assignor.
The Landlord and the Assignee also must provide each other Disclosure Statements and the Assignee must be provided with a copy of the lease.
Additionally, unless you lease more than five retail shops, an Assignee must give the Landlord a Legal Advice Report and a Financial Advice Report.
LANDLORDS
We can competently and cost effectively, assist Landlords to ensure their investment property and the retail income is protected.
We are able to prepare and negotiate leases, assist on assignments of leases and surrender of leases.
We can also assist in Landlord’s recovery of rent for the Tenant’s failure to pay and Tenant’s non-compliance of the lease.
RETAIL SHOPS LEASES
In Queensland, the Retail Shop Leases Act 1994 (the Act) sets the minimum standards for Retail Shop Leases. We are able to provide information to assist Landlords to be familiar with the requirements of the Act.
We are able to provide you with an understanding of your rights and responsibilities concerning your Retail Shop Lease.
DISCLOSURE REQUIREMENTS
At least seven days before entering into a retail shop lease, both the Tenant and the Landlord must give to each other Disclosure Statements which provides further information not otherwise ascertainable from the lease itself.
Pursuant to the Retail Shop Leases Act, the Landlord has a high duty of disclosure.
The purpose of the Landlord’s Disclosure Statement is to provide the Tenant with a summary of the lease. In particular, it will provide estimated outgoings, promotion and marketing costs for the Tenant and details of the shopping centre in which the premises is located.
If the Landlord does not give the Tenant a Disclosure Statement, the Tenant may terminate the lease within six months after the Tenant entered into the lease.
LEASE DISPUTES
We are available to advise and assist in all lease disputes, whether you are a Tenant in dispute with a Landlord or vice versa.
We can advise the most cost effective procedure to resolve the dispute.
If you have a dispute with your Tenant or Landlord, contact us today for a free quote before it’s too late.
