COMMERCIAL LEASING LAW

Who We Are

The Principal of Greyson Legal has 20 years legal experience in commercial and leasing law. You can be confident when engaging Greyson Legal that you are dealing with lawyers that have a thorough understanding of business law and commercial leasing. We provide a range of commercial leasing legal services.

Whether you are new to business and commercial leasing or an existing business owner needing commercial leasing advice or assistance - we can help you.

A commercial lease is a form of contract between a Landlord (Lessor) and a Tenant (Lessee) in regards to the occupancy and use by the Tenant of a freehold premises owned by a Landlord.

Many business owners enter into commercial leases to enable that business owner to operate and trade their business from specified fixed premises.

As with any contract, before signing a commercial lease, it is important to understand the lease terms and conditions, rights and obligations of each party.

Commercial leasing typically encompasses:

  • Commercial offices;

  • Industrial warehouses and sheds;

  • Retail shops;

  • Vacant commercial land.

What We Do

If you are a Tenant, Greyson Legal can assist you:

  • to understand the elements of the commercial lease and any associated lease documentation;

  • to complete and fulfil any steps that you need to carry out in order to obtain:

    • the Landlord’s consent to you as Tenant;

    • Landlord’s mortgagee’s consent (if required);

    • a signed lease on terms and conditions you are satisfied with.

We ensure:

  • you understand any associated risks;

  • you are aware of your rights and obligations;

  • you are aware of any key dates and periods under the lease;

  • all key terms and conditions are explained to you;

  • the lease process proceeds as smoothly as possible.

Our Commercial Leasing Law Practice Area

Elements in a commercial lease process we carry out may include:

  • Checking the Landlord, Tenant and Guarantor (if applicable) are properly described in the lease

  • Verifying security requirements, eg. bank guarantees, bonds

  • Determining Rent, outgoings and and other amounts payable under the lease are properly stipulated

  • Assessing the Lease term (period) and any options

  • Advising on insurance obligations

  • Confirming Landlord’s and Tenant's general rights and obligations

  • Checking damage, destruction, relocation provisions

  • Carrying out relevant searches 

  • Assessing whether the Retail Shop Leases Act 1994 (Qld) applies and if so, ensuring all required steps and disclosures under the RSLA are followed, such as:

    • review and advise you on the Lessor Disclosure Statement

    • guide you in relation to the Lessee Disclosure Statement

    • provide you with a Legal Advice Report

    • direct you in regards to obtaining a Financial Advice Report

  • coordinating or drafting amendments to the Lease

  • assisting with registering the Lease (if required)

  • liaising with other parties (as applicable);

  • the process and documentation to transfer/assign an existing Lease

Commercial leasing can be a complex area of law. At Greyson Legal we help you deal with these issues to ensure all steps to the commercial lease process are appropriately addressed and your risk exposure is highlighted and minimised.

Ancillary or Related Documents

Depending on the nature of the premises or the terms of the commercial lease, there may be other associated documents, for example:

  • Offers to Lease

  • Agreements for Lease

  • Fitout Deeds

  • Sub-Leases

  • Occupancy Licenses

  • Car park Licenses

  • Incentive Deeds

  • Seating Licenses

  • Personal Guarantees

  • Bank Guarantees

Each premises and arrangement with a Landlord will have its own specific requirements.

New Lease or Assignment of Existing Lease

The commercial lease may be a new lease or involve the assignment of an existing lease. Different documents and steps will apply to each type of lease transaction, such as, one or more of the following:

  • New Lease or assignment of existing Lease

  • Lessor’s Consent Deeds

  • Mortgagee’ Consent Deeds

  • Assignor/Assignee Deeds

  • Deeds of Assignment

Lease Registration

In Queensland, it is not a compulsory requirement to register a lease per se. However, a lease for a duration of more than 3 years (including options) is considered a long term lease and, as such, must be registered in order for the Tenant to receive a legal and indefeasible interest in the leased premises and certain statutory protections.

 The benefit of indefeasible title means:

  • that your interest as Tenant will be protected should the Landlord decide to sell the freehold in the property. Any potential buyer of the freehold will be required to purchase the property subject to the lease (provided it is registered on title); and

  • if the Landlord has a mortgage over their property (now or in the future), in the event the mortgagee should take possession of the property (eg. if the Landlord defaulted under its loan/mortgage and the bank enforced its rights), that mortgagee will only be obligated to honour the terms of your lease and recognise the Tenant's interests pursuant to the terms of the mortgage if such lease is registered on title.

 The registration of leases in Queensland is controlled by the Department of Natural Resources, Mines and Energy (DNRME) or Land Titles Office as it often called. There may be further steps and documents required in order to comply with Land Titles Office registration procedures. Such as:- the lease documents being in a prescribed form; annexure of plans/sketches if part of the land is leased; payment of registration fees, etc.

Retail Shop Leases

If the premises to be leased will be used to conduct a business that is retail in nature; or if the premises are within what is referred to as a “retail shopping centre” – then the Retail Shop Lease Act 1994 (“RSLA”) will apply.

Generally, a "retail shopping centre" is a cluster of 5 or more premises within a centre that are used predominantly for carrying on retail businesses, and where all the premises are owned by the one Landlord and all the premises are located in one building or two or more adjoining buildings. Westfields, for example, is a type of retail shopping centre.

Where the RSLA applies:

  • there are a number of additional leasing documents and steps which need to be complied with by the Landlord and Tenant. This is irrespective of whether it is a new lease or assignment of existing lease – although the steps involved will alter;

  • the Tenant will receive certain protections under the RSLA.

For a new Lease, the additional RSLA documents include:

  • Lessor Disclosure Statement;

  • Lessee Disclosure Statement;

  • Legal Advice Report; and

  • Financial Advice Report.

In addition, the disclosure obligations under the RSLA must be complied with within prescribed period of time. For example, under section 21B of the RSLA, at least 7 days before the Tenant enter into a new Lease, the Landlord must give the Tenant:

  • a draft of the Lease; and

  • the Lessor Disclosure Statement.

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