Retail Lease Agreement

The retail lease agreement is a legal contract used to obtain the lease to a property for commercial uses. It comes under the jurisdiction of the state or a separate leasing authority. The terms outlined in the agreement should be agreed upon by the property owner and the potential lessee. This type of agreement is executed to gain the permission to conduct business on retail grounds when leasing from shopping centres or warehouses.

What Is A Retail Lease Agreement?

Retail lease agreements are legally binding contracts executed between the retail property owner and a potential tenant acquiring the lease to conduct business on the property. This agreement is carried out for a fixed period decided by both the parties mutually or as per the landlord’s discretion. The contract includes several key terms such as rules and regulations agreed upon by both entities. The leasing is governed by either the State or by separate leasing authorities set up by the government. The agreement is enforceable by law and disciplinary measures can be taken against the tenants who refuse to follow the agreed terms. The potential lessee must read the terms carefully before signing the contract. Seeking advice from legal counsel is recommended before finalising the retail lease agreement. There are several clauses included in the agreement which will be discussed further below.


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What Are The Important Agreement Terms?

Retail lease agreements consist of several terms that should be agreed upon by both the landlord and the potential tenant. Some of the important agreement terms are as follows:

  • Time Clause – The property is leased to the tenant for a fixed period decided by both parties. The lease can be extended in the form of a new agreement if agreed by both entities.
  • Rent To Be Paid – The owner decides the rent to be taken for the property based on several factors like location, square footage and, market demand. There is room for negotiations until an amount is decided mutually. The agreement is executed if the tenant agrees to pay the desired rent.
  • Increase In Rent – The retail lease agreement usually demands a percentage increase in rent at the end of the period if the tenant wishes to renew the lease. It is pre-decided by the owner and negotiations can be made to alter the percentage of increase in the rent.
  • Right To Sublet – The owner has complete discretion regarding whether the tenant should be given the authority to sublet the property or not. These terms are discussed thoroughly before forming an agreement.
  • Security Deposit – Along with the rent to be paid annually or monthly depending on the terms, the landlord might ask for a security deposit for protection against theft and damage to property. The amount to be deposited is based on the rent structure and duration of the lease.
  • Alteration In The Property – The tenant can request the owner to make certain changes in the property to meet the requirements of the former. These alterations are noted down in the terms of agreement along with the information about which party would finance the changes.
How Can Commercial Lawyer Perth Help You?

How Can Commercial Lawyer Perth Help You?

Retail lease agreement solicitors at Commercial Layers Perth can give you great legal advice that you need before signing the contract. The agreement includes several terms that require professional care and attention. A lawyer can help you in drafting the agreement and in negotiating the different terms. The potential lessee must read all the terms carefully as this agreement is legally enforceable. The support of a legal advisor is essential while inspecting the contract terms to prevent any disputes in the future. A lawyer will summarise the terms and help you understand the procedures involved to successfully obtain a lease.

How Can Commercial Lawyer Perth Help You?

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