When you lease a commercial property as a real estate agent, there is a temptation to pass the transaction over to a solicitor to complete and finalise. The temptation is more relevant and real when you are very busy as an agent on a number of properties at the same time. The reality of the situation is that you must stay with the negotiated transaction to the very end after all the monies have been paid and a transaction has been completed.
It is very common for the property transaction to derail for a number of reasons. When solicitors get involved on the parts of their respective individual customers, the priorities and guidelines of the original deal can become the centre of a debate. As the real estate agent who did the deal, you need to stay with the transaction to the very end.
Here are some guidelines that can apply to the standard leasing transaction that you could negotiate. Develop a checklist for the process and modify the checklist for your local area taking into account special property conditions and the prevailing property market.
- The lease that is created should be in keeping with the original terms of the negotiation. It is likely that the lease will be debated between the parties when the document has reached a final form. Ensure that all the parties sign the document correctly and in the right order.
- In some circumstances there can be other documents and disclosures relevant to the original lease. They may be disclosures, licences, car parking agreements, naming rights, and other documents. A special note should be made regards retail property; this property type is quite unique and special when it comes to leasing. A retail property transaction will normally have extra disclosures and statements regards occupancy costs and lease arrangements. Check out the local legislation relative to property in this regard. You cannot negotiate something if you do not know how to document the final agreement.
- When a lease document is signed, ensure that all the necessary monies are paid in keeping with the transaction. They will normally be rental in advance, deposit monies, bonds, and bank guarantees. Those monies should be cleared at bank prior to any occupancy being given and the keys handed over.
- If the tenant has any special needs or requirements relative to the new lease fitout design, they will need to enter into some dialogue with the landlord and or building authority regards lodging plans and drawings, together with the approvals for the building or tenancy modification. The as built drawings within the premises will be of high value to these discussions. Get copies of the as built drawings from the property landlord.
When a tenant has been given access to the premises, it is quite important to remain in contact with them for a number of weeks in case the occupancy arrangements are a problem. The property manager or the landlord for the property will also have an involvement with the tenant to minimise difficulty.
So the message here is for the negotiating commercial leasing agent to remain in contact with the tenant and the landlord throughout the lease transaction, and even after its completion. In this way you will maintain the momentum for the transaction on behalf of your client. The end result will be a good commission.