Lease Agreement Advisory Services for a Commercial Business
Background
Lease Agreements are often confusing, lengthy and complex. Sometimes, deliberately so. Often multiple pages of jumble that a business owner simply signs without turning their mind to the consequences. It is dangerous to sign a document you do not understand. It can cause you to become trapped in a contract that can have profound legal and financial consequences.
Our client, an emerging retail commercial business operating interstate, sought our assistance when expanding nationally. We reviewed and advised on a lease agreement in South Australia. This legal step is critical before committing to a new lease agreement. If the client entered into this agreement without full and proper advice, they could stall or impact their business success. Careful review of the legal documents and straightforward legal guidance is important to help reduce risks. We ensure all terms and conditions are brought to the attention of the business owner and that the terms and conditions are fair and lawful. Often, such terms are not fair, nor lawful, and you need to know. When you are fully aware that terms are unfair or unlawful, then you will have an opportunity to negotiate more favourable terms.
Signing a lease without advice is not worth the risk. A small investment today can help reduce risk of financial loss, or potential insolvency in the future. Our fees start from as little as $750 and can save you time, stress, money and provide security for your business growth into the future.
Service Provided for our Client
We provided a comprehensive legal advisory service, including:
- Review of the complex Lease Agreement: We conducted a thorough review of the draft lease agreement provided by the landlord’s solicitor. This draft included details such as the base rent, additional rent, outgoings, maintenance responsibilities, and other critical terms. Key documents reviewed included the Retail and Commercial Leasing Guide and the Draft Lease – Commercial.
- Legal Recommendations: Detailed legal advice was given concerning the terms, conditions, and obligations outlined in the agreement, including responsibilities for maintenance and repairs, the inclusion of specific terms related to the permitted use of the premises, and the potential financial implications for the client.
- Financial Obligations: We highlighted the importance of understanding all financial obligations under the lease. This involved going over each category of outgoings and any additional costs that may arise, ensuring the client was fully aware of potential financial commitments.
- Clarity of Terms: We ensured the lease terms were clear and comprehensible, addressing sections that were ambiguous or potentially disadvantageous to our client. This included advising on the need for certain representations and commitments to be clearly outlined in the lease.
Critical Findings and Advice
- Clarity of the Lease: The reviewed lease agreement was clear in stating the responsibilities and obligations of both the landlord and the tenant. However, some ambiguous terms required further clarification to avoid potential disputes in the future. The outgoings were ambiguous or vague as were the terms of end of lease. There were provisions at the end of the lease that our client had not understood that would have cost them tens of thousands.
- Risks Without Legal Advice: Not seeking legal advice before signing a lease can result in significant risks, including:
- Unclear terms leading to potential disputes over responsibilities and financial obligations.
- Undisclosed costs or additional financial burdens not immediately apparent to the lessee.
- Legal consequences of non-compliance or breach of lease terms without a full understanding of the implications.
Case Outcome
Following our detailed review and recommendations, our client was able to negotiate more favourable terms with the landlord. Critical representations and commitments were clearly incorporated into the final lease agreement, safeguarding the client’s interests and ensuring a fair and balanced contractual relationship.
How we can help your Business
For businesses entering into lease agreements, especially those in the retail and commercial sectors, it is important to seek professional legal advice. The complexity of lease agreements demands comprehensive understanding and clarity to avoid costly disputes and unforeseen liabilities. Ensure your lease terms are fair, clear, and legally sound by consulting with our legal professionals before making any commitments.
For professional assistance with your lease agreements, contact our experienced lawyers at Adelaide Legal Solutions. We are dedicated to providing thorough and reliable legal services to ensure your business interests are protected. Email your enquiry today info@alslaw.com.au or call us on 08 8312 6440.