Due to the complexity of commercial leases, it is always a good idea to have this type of contract verified by an experienced business lawyer. Here are five concrete reasons why you should have a rental agreement verified by a lawyer: the awarding of these obligations depends, among other things, heavily on the nature of the property, the length of the lease and the relative bargaining power of the parties. If possible, require the maintenance of the structural elements of the premises at the expense and costs of the lessor. Very interesting – I`m Gene. Counsel for a hedging company and we insure commercial rentals. Useful for looking at the subject from a different angle. Assess the commercial lease for hidden costs: commercial leases cover much more than your monthly rent. There may also be a fee that you have to pay for the maintenance of public spaces, you can be expected to contribute to property tax payments, and you may be charged a quarterly or annual maintenance fee. Often these costs are buried deep in the agreement and are often not addressed until it is time for the owner to recover them. Careful review of the provisions that describe the start date of the lease, the timing of its expiry and the start of the lease obligations.
Explain the time it takes to complete the work in progress for building the premises, installing devices and/or making modifications for your business. We help companies ensure that their commercial leases are fair and a good investment. With an experienced real estate lawyer carefully checking your commercial rental could help save your business. As we have escaped the previous points, perhaps the most important reason is to have a lawyer to verify your lease, as commercial leases are usually written by the owner (or more often by their lawyer), which means that the contract is formulated in a way that is most favorable to the owner. Your lawyer can often negotiate better terms, which can put you in a much more favourable position if you move your commercial spaces, if you rely on your commercial spaces, if you occupy them. Commercial leases are also not subject to consumer protection, as are other types of agreements. This means that the law allows a company to accept unfair and repressive conditions that it would never recognize if it applied to a residential tenant. Try to note a rental protocol that refers to the purchase option in the official records of the county where the property is located. Make sure the right parts are taken into account in the lease. This is a very simple but often overlooked step. As a tenant, you want to be sure that the landlord has the right to rent you the premises and work elsewhere under the rental agreement. Excellent speaker.
I wish the course had lasted two hours so that he could talk more deeply about the standard rental clauses. Assess the lease clauses on fairness: You should expect the lease to favour the landlord. Commercial rentals are often so inclined in favour of the owner that acceptance of the lease would be, as written, a business error, because it puts us too much risk on our shoulders. It is important that you know exactly what obligations you are taking before you commit your business to a commercial lease. Commercial leases differ from residential rents in many critical areas. The law and the legal system generally protect many more tenants than commercial tenants.