Conveyancing & Property: Retail & Commercial Leases - Guides
Retail & Commercial Leases
7. Starting the Lease
Firm / Chambers:
Last updated: 29 Aug 2015
- Generally a lease starts when the lease agreement is signed by the landlord and tenant.
- Retail tenancy laws recognise that leases might start prior to signing such as:
- if you take possession of premises before a lease is signed; or
- if the landlord makes an offer in writing to rent the space to you and you accept that offer in writing.
- Parties can agree to the basic terms of the proposed lease prior to the formal lease document being prepared. Usually the agreement will not be a binding until it has been reduced into writing within the formal lease document and both the landlord and tenant have signed that document.
- It may be possible to organise an early access arrangement prior to signing a formal lease with the landlord to provide the tenant with early access to the premises for installation of
- fixtures;
- fittings; and
- other services.
- Early access can be arranged between the parties by a letter setting out:
- the basis on which early access has been granted; and
- safeguards for both parties if a formal lease agreement is not entered into.
- The landlord may require the prospective tenant to sign the formal lease agreement within a certain period of time otherwise the tenant may be required to remove their installations and vacate the premises. The risk that the formal lease may not be agreed to must be considered as well as any costs you will incur in removing installations if this occurs.
- Prior to signing the lease agreement the responsibility for fit-out and installation expenses should be negotiated between the tenant and the landlord.
View more Information on Conveyancing & Property