Greyson Legal | Leasing Lawyers
What is a Commercial Lease?
A commercial lease (whether retail or non-retail) is a form of contract between a Landlord (Lessor) and a Tenant (Lessee) in regards to the occupancy and use by the Tenant of a freehold premises owned by a Landlord.
Many business owners enter into commercial leases to enable that business owner to operate and trade their business from specified fixed premises.
As with any contract, before signing a commercial lease, it is important to understand the lease terms and conditions, rights and obligations of each party.
Retail Shop Leases
Retail leasing is a sub-set of commercial leasing.
If the premises to be leased will be used to conduct a business that is retail in nature; or if the premises are within what is referred to as a “retail shopping centre” – then, applicable retail shop leasing legislation is likely to apply.
Westfields, for example, is a type of retail shopping centre.
In Queensland, for example, the Retail Shop Leases Act 1994 (Qld) regulates retail shop leasing.
The Act sets out certain consumer protection mechanisms for retail tenants as well as disclosure obligations. For instance, in relation to any new lease :-
the Lessor is required to provide the prospective Lessee a Lessor Disclosure Statement and copy of the Lease at least 7 days before the Lessee enters into the Lease; and
the Lessee is required to provide the Lessor with a Lessee Disclosure Statement and obtain independent Financial Advice and Legal Advice.
There are also various obligations under the Act in regards to a lease renewals and an assignment of a retail shop lease.
At Greyson Legal | Leasing Lawyers, we can assist you in not only understanding your rights and obligations under the retail shop lease itself, but also ensure both the Lessee and Lessor have met their respective disclosure and compliance obligations under the relevant legislation.
At Greyson Legal | Leasing Lawyers, we can prepare, review and advise you on all aspects of lease documentation and the commercial leasing process. For instance:
Offers to Lease
Agreements for Lease
Lessor’s Deed of Consent to Assignment of Lease
Mortgagee’ Consent Deeds
Car park Licenses
In Queensland, it is not a requirement to register a lease per se. However, a lease for a duration of more than 3 years is considered a long term lease and as such, must be registered in order for the Lessee to receive legal and indefeasible interest in the leased premises and certain statutory protections.
The benefit of indefeasible title means:
that the Lessee's interest in a premises will be protected should the Lessor decide to sell the freehold in the property. Any potential buyer of the freehold will be required to purchase the property subject to the Lessee's Lease (provided it is registered on title); and
if the Lessor has a mortgage over their property, in the event the mortgagee should take possession of a property (eg. if the Lessor defaulted under its loan/mortgage and the bank enforced its rights), that mortgagee will only be obligated to honour the terms of the Lessee's Lease and recognise their interests if such Lease is registered on title.
The registration of leases in Queensland is controlled by the Department of Natural Resources, Mines and Energy (DNRME) or Land Titles Office as it often called.
There is a lodgement fee to register the Lease with the DNRME.
Lease Terms and Conditions
As leasing lawyers, Greyson Legal are familiar with the format of lease documentation and the type of information that should be set out in the Lease. We know what to look for and to assess any re flags that you should be advised about. We comprehensively review the Lease documentation, such as:
ensuring the Lessor and Lessee are correctly identified
what security is required:- personal guarantee, bank guarantee or cash bond
confirming the Premises description is correct and size of area to be leased
checking the permitted use
note the rent, outgoings and other amounts payable under the Lease
clarify what Landlord works and Fitout is to be undertaken
what is the Term/period of the Lease and any renewal periods
are there any fitout incentives
does a rent free period apply
checking if the use is exclusive or non-exclusive
clarifying the trading hours
determining the Lessor's obligations and Lessee's obligations
what are the repair and maintenance requirements
who is liable to maintain any air-conditioning unit
what are the insurance requirements
the process to assign the Lease
Lease default and termination provisions
are there provisions for relocation of premises of demolition of the premises
are there special arrangements, such as, seating licenses
Let Us Help You
At Greyson Legal, we help you to understand the elements of the lease documentation and to complete and fulfil any steps that you need to obtain a signed lease on terms and conditions you are satisfied with.
you understand your risks;
you are aware of your rights and obligations;
you are aware of any key dates and periods under the lease;
you understand the application of the relevant legislation;
all key terms and conditions are explained to you;
to the extent we are able, the lease process proceeds as smoothly as possible.