If you have found the best property for your commercial premises, then you must now be considering signing a lease for the property. But do you know what a commercial lease is, and are you familiar with the different clauses which outline the importance of the document?
According to commercial law experts, the clauses in the lease highlight the rights and obligations of both the tenant and the landlord, and any discrepancy and negligence can result in breach of contract by either one of the two parties.
Your Commercial Lease – What Is It?
It is very important for you to recognize the importance of a commercial lease, as it is a legally binding contract. It is essential for both the tenant and the landlord to understand the different terms and conditions given in the contract before signing up the contract.
It is also important that both the parties recognize their obligations and rights, so that all disputes can be avoided, or easily handled if any should arise. Since most lease clauses are quite complicated, it is important to seek the help of an expert who can advise you on the matter.
You need expert legal help, before you,
- Occupy any leased property
- Pay any deposit or any other form of monies
- Make commitment to take, lease or buy on any work which might affect your lease obligations
- Sign a lease contract
Legation for the Retail Premises
Many shop leases in the Western part of Australia are regulated according to the Commercial Tenancy Agreements Act 1985. It is important to understand the act as it will most probably regulate your commercial lease.
Leases That Are Regulated By the Commercial Tenancy Act
The act provides coverage for a number of different lease options, which include leased properties which are in a retail shopping centre, used only for carrying out the business, or a retail store.
According to the act, a retail shop is one which includes a group of premises, as well as a single plan, of 5 lessees, which carry on a retail or any other form of business. The businesses included in this definition cover dry cleaning and hairdressing, beauty treatments and therapies, shoe repair and rental or sale of DVDs etc.
Following premises are excluded coverage under this act, 1). A leased property which has a floor area over 1,000 square meters, 2). Any leases which are held by any public companies as well as their subsidiaries, 3). Property leased for the operation of a vending machine, 4). Lease held by the listed corporation, or any of their subsidiaries, and 5). Any retail businesses that are held exempt under the act.
Resolution of Disputes
All disputes between the landlords and the tenants need to be settled in a cost effective way to minimize any chance of possible damage. It is best to go through the lease document and clarify all the obligations and rights of both the parties. This helps to settle the dispute in a logical way. To resolve a dispute resolution, you can use any of the following methods,
- Any informal negotiation settlement
- Take the lease dispute to the legal court
- Arrange a mediator for mediation
- Opt for help from the State Administrative Tribunal
With a sound knowledge of the legal leasing details of premises in Australia, you can make the right contract decisions.