Getting a fair outcome

2 Loopholes in Your Commercial Lease You Need to Look Out For

Commercial leases are a necessary part of doing business and serve as the legal agreement between a tenant and a landlord. While they're very important documents, they can also contain potential loopholes that tenants should take the time to look out for.

Here are two common loopholes in commercial leases that your lawyer can help you avoid.

Automatic Renewal Clause

An automatic renewal clause is a common loophole in commercial leases that can be difficult to detect and result in costly consequences. It allows for the lease agreement to automatically renew after a set period unless you or the landlord provide written notice beforehand.

This means you have no say in whether or not you stay in the tenancy after the initial lease period has ended. As such, it's important to pay careful attention to any clause in your lease agreement that mentions automatic renewal, and you should schedule regular reviews of your lease term with a qualified lawyer.

An experienced lawyer can explain all the risks associated with an automatic renewal clause and help you negotiate fairer terms if possible. In some cases, it may even be possible to add an amendment to your contract that removes or modifies the automatic renewal clause.

However, it's essential to make sure that any changes are done correctly and officially acknowledged by both parties, as this can help protect your rights in case of disagreement further down the line.

Subletting and Assignment

Subletting and assignment are common loopholes in commercial leases that can cause major issues if not addressed properly.

Subletting refers to a tenant making arrangements with a third party to occupy the property during the lease period. On the other hand, assignment is when a tenant transfers their lease rights on the property to another party altogether. Both actions can have serious legal ramifications for landlords and tenants, depending on how they are handled.

For example, without your landlord's consent in writing, subletting and assignment may be considered illegal or even void certain clauses in the original contract. Therefore, it's important to seek legal advice from an experienced lawyer before entering an agreement.

Your lawyer can help you understand your rights and obligations when it comes to subletting and assignment, as well as advise you on how best to protect yourself in these situations. They can ensure that all paperwork is correctly filled out and submitted to the appropriate authorities.

Commercial leases come with a host of potential loopholes that can be difficult to identify and costly to address. An experienced lawyer can help you navigate these issues and avoid potential legal pitfalls.

They can help you review your current lease agreement, identify any potential loopholes and provide advice on how to protect yourself. Once you're aware of these issues, you can ensure that your rights as a tenant are properly protected. For more information on commercial leases, contact a professional near you.

About Me

Getting a fair outcome

When my friends make lawyer jokes, I just shake my head. Lawyers help our clients to get fair and equitable outcomes in and out of court and there is nothing more Australian than a fair go. With large and small clients coming in with new problems each day, I never quite know what the new day will bring, but that's the great thing about being a lawyer. Legal practise is always changing, always challenging and always rewarding. The one thing that stays the same no matter what the case details is that our focus is on getting the best outcome for our client.