Leasing of Property

We prepare and review leases and sub-leases for non-residential properties either in the lease transaction or as part of a buy/sell or financing transaction. We also prepare and review other documentation relating to the occupation of property including car parking and advertising site licensing agreements. Error in understanding the scope of a tenant’s obligations (including as to repair and make-good) can have very serious cumulative consequences for landlord, tenant or the buyer of a leased property.

Practice area overview

Non-residential real estate leasing transactions:

• Are usually long term commitments for the landlord and tenant with significant ongoing financial liability as to rental, outgoings, repair and maintenance and make-good obligations.
• Are not all of the same type of leased property and the lease terms vary as ‘standard’ form commercial leases are not commonly used in New South Wales as each landlord has its own lease (which should be carefully reviewed by the tenant or the buyer of the building).
• Can be regulated by the Retail Leases Act 1994 (NSW) which provides some protection to tenants of premises regulated by that Act.

In any non-residential leasing:

• The underlying property being leased can be either freehold, leasehold, strata or community titles. Also other forms of ownership exist including company titles.
• The terms of the lease will vary depending on the nature of the property that is being leased: e.g. vacant land, a free-standing building or premises within a building. They are not the same.

Any leasing transaction may involve a range of issues including:

• Rental terms and structure
• Maintenance and repair obligations and structural improvements
• Outgoings and capital expenditure
• ‘Fit out’ obligations
• Make-good obligations
• The impact of taxation
• The right of a franchisor impose obligations on the tenant as franchisee

 

What we do

We provide advice and documentation for non-residential real estate leasing transactions in New South Wales for landlords and tenants. We prepare and review leases and sub-leases for non-residential properties including premises regulated by the Retail Leases Act 1994 (NSW) and other documentation relating to the occupation of property including licensing agreements for occupation, carparking and advertising. We are not involved in residential leasing.

If you are considering entering into a lease email talktous@bamfordlaw.com and ask us to send you our ‘Client Questionnaire’ which identifies various issues that may be relevant to your negotiation of your lease.