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When finding an ideal store, we may rush to sign a lease agreement to secure it. However, once the landlord accepts, we cannot change our minds. The consequences go beyond losing a deposit; we may be obligated to accept the lease terms.
Therefore, during the process of leasing a commercial property, we need to pay attention to the following three important matters:
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Consult with the local municipal authorities to obtain planning and permit approvals:
Typically, when leasing a commercial property, certain planning and permit approvals are required. While real estate agents may assure you that there will not be any problems, they actually do not have the authority to make decisions regarding planning issues.
If we lease a property but the municipal authorities do not grant the necessary permits, it can significantly affect our business.
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Ensure that all verbal commitments are included in the contract terms:
During the negotiation of the lease agreement, the landlord and real estate agent may agree on various conditions, such as renovation deadlines.
It is important to remember to include these terms in the lease agreement to ensure the protection of both parties’ rights and interests.
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Handle personal guarantee responsibilities with caution:
Real estate agents often require company directors to provide personal guarantees for the lease agreement. This means that if the company fails to pay rent or goes bankrupt, the rent responsibility will be shifted to the individual director.
Therefore, it is crucial to be extra cautious in this regard.
If you have any questions regarding commercial leasing in Australia, please contact us immediately. Our commercial lawyers are happy to answer any relevant legal questions.
*Disclaimer: The above content is intended to provide general legal knowledge and should not be considered specific advice for your individual situation. The law is complex, and we strongly recommend seeking professional legal advice. Canaan Lawyers is not responsible for any loss or damage incurred by anyone as a result of information included or omitted in the above content.