Before concluding a lease of commercial real estate is important conduct a legal audit of the object and the seller. It is also important to prescribe the terms of the lease in favor of the tenant. However, during the war most of the state registers do not work, so a detailed inspection will not work. We have prepared short recommendations that you need to follow if you are concluding a lease agreement.
The recommendations that you need to follow if you are concluding a lease agreement
📌 Commercial real estate lease agreement inis put in writing. If the term of the contract exceeds 3 years, it is subject to notarization and state registration.
📌 Check whether the signatory of the contract matches the data specified in the legal documents (certificate of ownership, contract of sale, contract of gift, court decision, etc.). If the contract is signed not by the owner, but by another person, he must have a power of attorney.
📌 Pay attention to the object specified in the lease agreement and its characteristics (area, number of premises) Information about him must coincide with the information from the technical passport and the title document.
📌 The lease agreement may provide preparation of the premises for the intended use. The parties may agree on the list, procedure and timing of repair work. Rent for this period by agreement of the parties decreases, or does not accrue at all.
📌 The fact of transfer of the premises to the lessee is certified by the act of acceptance-transfer. It indicates the state of the object at the time of transfer to the tenant. After the termination of the lease, you will need to return the premises in the condition that was recorded in the act of acceptance of the object. Therefore, if the object has defects or worn condition, you it is necessary to state this in the act.
📌 Agree with the landlord the possibility do not increase the rent unilaterally, or agree on the possibility of increasing the rent and the maximum amount of such increase. For example, "The rent for the premises may not increase by more than 5% in two years."
📌 As a general rule, current repairs of the leased premises and all its systems are carried out by the lessee, and overhaul - the landlord. However, the parties to the contract may distribute these responsibilities differently.
📌 Pay attention to the clauses of the contract on liability for accidents that may occur in the leased premises. It will be fair to say that the tenant should be liable only for accidents that occurred through his fault. It is also advisable to provide for the obligation of the landlord to be responsible for accidents in public networks.
📌 Lease agreement may provide for the possibility of unilateral termination of the contract at the initiative of the landlord without any significant grounds. This provision is not mandatory for the lease agreement and may reduce the estimated lease term of the premises. We recommend insist on its exclusion in the absence of substantial grounds for unilateral termination of the contract.
📌 It is important to provide for the tenant's right to terminate the contract unilaterally, provided that the owner of the premises is notified within a certain time. This provision is mandatory because it insures in case the business cannot work.
📌 The lease agreement may be determined by agreement of the parties penalties: fine and penalty. It is important that they are reciprocal, found to be in breach of contract, and encourage the other party to comply.
📌 In addition to general penalties, the lease is usually establish the right of the landlord unilaterally do not allow the tenant to the rented premises, stop the supply of utilities, etc. Such rights of the landlord should be established only for significant breaches of contract.
