What is a commercial lease agreement?
A lease is a type of legally binding contract where one party (known as the lessor or the landlord) gives the another party (known as the lessee or the tenant), a right to occupy and use real property (land and/or buildings) in consideration for rent.
A commercial lease agreement is one where the property let is used for commercial (business) purposes.
Lawyers tend to use 'lease' in conjunction with commercial properties, and 'tenancy' in conjunction with residential properties. But the two words can be interchanged.
Just as you might talk about a commercial lease agreement, you could equally talk about a residential lease agreement, and just as you might talk about a residential tenancy agreement, you could talk about a commercial tenancy agreement.
The terms in the document depend on the leased premises
In a lease, the business of the tenant is less important than the type of property being let. So our agreements differ with each other through the inclusion or exclusion of terms relating to features of the building, such as those dealing with rights to display signs, rather than by who the tenant may be.
Choose the right agreement by selecting the one whose description most closely matches that of your premises. More precise information as to the contents of a particular lease can be seen in the product page for that document.
We provide the words to include or exclude terms relating to the following in every lease:
- guarantor provision
- transfer or assignment to another party
- sub-letting forbidden
- inclusion of a break clause for premature termination by the tenant
- options for rent reviews
- an extensive menu of tenants' covenants to protect every aspect of the landlord's interest
- draft agreement for a security deposit
These are full agreements, drawn to a higher standard than most solicitors would provide. Despite the breadth of options we provide, editing is straightforward, regardless of whether you have prior experience or not of this type of legal agreement.
We provide extensive drafting notes explaining each paragraph, and we send you a guide on how to deal generally with editing and completion.
The law in these documents
Unlike residential leases, which are fairly standardised in order to comply with the laws of the Australian states, commercial lease agreements can be more flexibly tailored to the requirements of both landlord and tenant. Most terms can be negotiated.
Additionally, most commercial leases are governed by property laws, which are similar from one state to another. The exception is retail leases, which are subject to state or territory retail lease law.
Provided the lease term is three years or less, it does not need to be registered. If the term of a lease is longer than three years it must be registered at the Land Title Office.