Commercial property agreements usually require more attention than a simple residential rent agreement because the rights and obligations of the business occupying the property can be significantly broader.
Matters Commonly Addressed
- Rent or lease consideration
- Security deposit
- Duration
- Lock-in period
- Rent escalation
- Maintenance/CAM charges
- Utility expenses
- Permitted business use
- Signage
- Alterations and fit-outs
- Subletting
- Renewal
- Termination and notice
- Restoration of premises
- Taxes and other charges
Registration and Stamping
Longer-term commercial leases can involve registration requirements under the Registration Act. The correct stamp duty and registration requirements should be determined according to the actual instrument rather than relying on a generic amount found online.
Common questions
What is a lock-in period?
A period during which one or both parties cannot end the lease without consequences. Its length and the penalties should be negotiated and written clearly.