When it comes to leasing a commercial or retail property, you will find that there are special things that should happen to keep control of the transaction and the final stages of property handover. Eagerness produces errors and omissions from a leasing perspective.
The simple fact of the matter is that control helps us get the parties to the lease ‘across the line’. For that very reason it pays to have a checklist approach to the leasing process and property handover.
When you get a lease negotiation underway, so many things can come into the transaction and divert the discussions and agreements. Very commonly in the involvement of solicitors on behalf of the parties to the lease you will see that slow-down process start.
You are working for the client and they want a timely lease that is correctly executed and implemented. Always stay with the negotiation and the lease momentum to the very end. If a solicitor has the papers on behalf of a client, chase-up the situation and see where things can go next.
Here is a checklist for the leasing of premises; it features some of the main things that are really important in leasing and a timely outcome. You can add to the list based on your property type, and location.
- The correct lease documents should be prepared with accurate regard for the facts from the original lease negotiation. Ensure that the client’s solicitor understands all of the facts and the unique elements of the property.
- Some lease documents are just part of the required paperwork for the lease occupancy. At times there are other papers such as fit out agreements, disclosures, licences, and side agreements. All of these should be correctly signed and in the order that is relative to local property laws and leasing situations.
- Any incentive agreements between the parties should be correctly documented and signed.
- Any plans and drawings that are part of the leasing agreement should be sourced and available for approvals.
- Any consultant reports relating to the transaction should be sourced. Typically they are mechanical, electrical, structural, and base building.
- The permitted use for the premises should be clearly set and agreed between the parties. That use will have impact on the design of the premises.
- Landlord approvals may be required before any building approvals are sought from the building and construction board or office.
- All monies to be paid under the lease should be taken at the time of handing over of all lease documents from the tenant. Those monies should include bonds, guarantees, fit out contributions, and any other important financial commitments from the lease document.
- Do not under any circumstances hand over the keys to the premises until the landlord and their legal advisor have indicated that all papers and monies are correct and in order with both parties. Importantly those documents should be signed by both parties.
- Document the condition of the premises before the tenant takes over. This will be an important fact of record when it comes to the end of the lease.
When you create a lease handover checklist, you can keep the transaction on track to finality. That then means a happy client and a good commission.