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The process of entering into a commercial lease agreement can be complex, and fraught with potential risks. Your rights and obligations as a landlord (lessor) and tenant (lessee) differ markedly, and for this reason, it is important to seek advice from experienced professionals before entering into an agreement and ensuring you are fully aware of your rights and obligations. The consequences of a mistake or misunderstanding in the commercial lease arena can be both time-consuming and extremely costly. Commercial lease disputes also often lead to litigation which can expose your business to significant costs and expense. Finally, in NSW (Sydney) lease agreements should be registered with the land registry service (LRS) to ensure that the rights and interests of both landlord and tenant are protected. Again, a failure to comply with registration requirements may result in complications and additional costs, so this is another reason to seek advice from a professional lawyer.
What is a commercial lease?
When taking out a new lease in NSW, it is important to note that a commercial lease does not carry the same protections for tenants as a residential lease; it falls under commercial law. A commercial lease is a legally binding agreement between a landlord (lessor) and a tenant (lessee) for the rental of commercial or retail business premises. Commercial property lease terms can vary significantly from lease to lease and may also vary according to whether the lease is for commercial premises or retail premises. Commercial leases contain different terms, rights and obligations to those governing residential leases including council zoning, permit and building standard requirements. Further, consumer protections that apply to residential leases do not cover commercial leases. Commercial property lawyers also have a vested interest in Commercial law in addition to property law and conveyancing. If you are a landlord it is important to have a commercial leasing lawyer draft a lease to ensure your objectives are met, and your rights and interests are protected. Equally, as a potential tenant, it is important to ensure that you have fully reviewed the terms of the lease to ensure that it meets your needs and that you will be able to employ the premises for your intended purpose.
Retail Lease Legislation
If a business is located in a retail shopping centre and wholly or predominantly carries on a retail business, it is likely that the lease will be governed by the Retail Leases Act 1994 (NSW). The broad aim of the act is to ensure retail leasing arrangements are fair and to provide mechanisms to resolve disputes between landlords and tenants should they arise.
Negotiating a Lease and leasing matters
Commercial lease terms, including terms relating to rent, bond, signage, fit-out, common areas and landlord obligations are usually negotiable between the parties. Other terms, including permissible use(s), building rules, use of public facilities, access to common areas and so on may not be. As a tenant, it is important to consider your circumstances and requirements carefully before committing to a lease. Inexperienced tenants are often caught out by accepting the first lease offer they receive. This may be to their detriment in the long run. A better idea is to have a commercial leasing lawyer review your lease and advise on any unfair provisions and negotiate amendments with the Landlord or the Landlord’s conveyancing lawyer prior to the lease agreement being finalised. This can result in the savings of thousands of dollars over the term of a lease. Contact us today for expert legal advice from a commercial leasing lawyer.
Real Estate Fixtures and Fit-Out
New South Law requires that a landlord provide prospective tenants (the business owners) with a disclosure statement (aka disclosure report) setting out the condition and functionality of all fixtures and fittings. This condition report should be obtained and carefully reviewed before entering into a lease. This generally also applies to industrial leasing, commercial leasing and retail leases.
New lease Costs for Commercial Property
In addition to ongoing rent costs, there are a number of costs to be borne by the tenant, including security bonds, insurance costs, legal costs (lease preparation in some cases and costs on default), refurbishment and fit-out expenses, repairs and maintenance, and refit or making good expenses at the conclusion of the lease. There is also often It is important to obtain advice on these matters before agreeing to a lease. Again, these are areas where a commercial leasing lawyer from the experienced team at Jameson Law Sydney can provide conveyancer legal services including advice and guidance on your legal matter, lease document and dispute resolution.
Sydney NSW Covid Notice
Our Sydney office is still open on an appointment basis. Book in your appointment with an expert commercial property lawyer today. Our Parramatta CBD office is offering its legal services during covid by appointment only and you can contact our commercial lease lawyers today to make a booking.
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Potential tenants should always also that careful enquiries are made relevant to the business, the lease and the property before making any commitments to buy, lease, take on an assignment or incur any other obligations. Prospective tenants should also consider the length of the commercial lease. Is there an option period (or periods) for renewal or extension of the lease? What terms or conditions apply to those options? Factors such as these can be important as brokers and financiers may not entertain a loan application if the repayment term substantially exceeds that available under a lease. It is also critical to understand all the expenses involved in renting the premises. Typically, a landlord will not be responsible for the payment of any outgoings, and so you prospective tenants need to fully appreciate the extent of their liability and responsibility.
You should obtain professional legal advice before entering any lease agreement. The experienced team at Jameson Law can assist and advise businesses and individuals with legal advice on all aspects of commercial and retail leasing.
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FAQs
Frequently Asked Questions.
An anchor tenant is one which generates significant foot traffic to the site. Common examples supermarket, department stores and retail showcase stores. It may be prudent to incorporate a term allowing you as tenant to terminate a lease if an anchor tenant departs.
A landlord is empowered to ‘lockout’ and evict a tenant is rent has not been paid for the requisite term. A written notice must be given of non-payment before taking this action. Landlords are required to comply with both the lease terms and state legislation in carrying out lockouts and evictions.
A redevelopment clause empowers landlords to terminate a lease in order to carry out prescribed types of major building works. It is important to ensure that the lease provides fair treatment and compensation for tenants in these circumstances. Further, leases may include both redevelopment and demolition clauses.
Retail and commercial leases may permit a tenant to assign the lease or sublet the whole, or part, of the premises to another tenant. This can be exercised in cases where a business decides to sell or can no longer operate the business. In most cases, the assignment will be subject to a landlord’s consent and may also be subject to other legislative requirements.
Retail and commercial leases may permit a tenant to assign the lease or sublet the whole, or part, of the premises to another tenant. This can be exercised in cases where a business decides to sell or can no longer operate the business. In most cases, the assignment will be subject to a landlord’s consent and may also be subject to other legislative requirements.
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- 0488 817 882
- 02 9052 0840
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Local Courts
Balmain Local Court
- 1300 679 272
- local-court-burwood@justice.nsw.gov.au
- 368 Darling Street, Balmain NSW 2041
Registry: Monday to Friday, 9:00am to 4:30pm
Bankstown Local Court
- 1300 679 272
- (02) 9722 6060
- PO Box 71 BANKSTOWN NSW 2200
- local-court-bankstown@justice.nsw.gov.au
- Cnr Chapel Road and The Mall BANKSTOWN NSW 2200
Court Operating Hours: 9:30am-4:30pm
Blacktown Local Court
- 1300 679 272
- (02) 9672 2666
- PO Box 217 BLACKTOWN NSW 2148
- local-court-blacktown@justice.nsw.gov.au
- 1 Kildare Road Blacktown NSW 2148
Registry Hours: 9:00 – 4:30
Telephone Hours: 8:30 -4:30
Days open: Mon-Fri
Burwood Local Court
- 1300 679 272
- (02) 9744 4144
- PO Box 235 BURWOOD NSW 1805
- local-court-burwood@justice.nsw.gov.au
- 7-9 Belmore Street BURWOOD NSW 2134
Registry Hours: 9:00 – 4:30
Telephone Hours: 8:30 – 4:30
Days open: Mon – Fri
Campbell Local Court
- 1300 679 272
- (02) 9821 7888
- PO Box 3435 LIVERPOOL WESTFIELDS NSW 2170
- local-court-campbelltown@justice.nsw.gov.au
- 150 George Street LIVERPOOL NSW 2170
Registry Hours: 9:00 – 4:30
Telephone Hours: 8:30 – 4:30
Days open: Mon – Fri
Central Local Court
- 1300 679 272
- (02) 4223 3633
- PO Box 5395 WOLLONGONG NSW 2500
- local-court-wollongong@justice.nsw.gov.au
- Cnr Market and Church Streets WOLLONGONG NSW 2500
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Downing Local Court
- 1300 679 272
- (02) 4223 3633
- PO Box 5395 WOLLONGONG NSW 2500
- dclc@justice.nsw.gov.au
- 143-147 Liverpool Street, Sydney NSW 2000
- Nearest Train Station: Museum Station (Liverpool Street entrance is directly opposite)
- Levels: Local Court matters are heard on levels 4 and 5.
- Public Transport: Well-served by buses and trains, with easy access to nearby bus stops and Museum Station.
- Parking: Limited street parking is available, and there are several public parking garages nearby.
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Wollongong Local Court
- 1300 679 272
- (02) 4223 3633
- PO Box 5395 WOLLONGONG NSW 2500
- local-court-wollongong@justice.nsw.gov.au
- Cnr Market and Church Streets WOLLONGONG NSW 2500
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Fairfield Local Court
- 1300 679 272
- (02) 4223 3633
- PO Box 5395 WOLLONGONG NSW 2500
- local-court-wollongong@justice.nsw.gov.au
- Cnr Spencer St & Court Rd, Fairfield NSW 2165
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Hornsby Local Court
- 1300 679 272
- (02) 9847 9955
- PO Box 96 HORNSBY NSW 1630
- local-court-hornsby@justice.nsw.gov.au
- 294 Peats Ferry Rd HORNSBY NSW 2077
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Liverpool Local Court
- 1300 679 272
- (02) 9722 6060
- PO Box 71 BANKSTOWN NSW 2200
- local-court-bankstown@justice.nsw.gov.au
- Cnr Chapel Road and The Mall BANKSTOWN NSW 2200
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Manly Local Court
- 1300 679 272
- (02) 9722 6060
- PO Box 71 BANKSTOWN NSW 2200
- local-court-bankstown@justice.nsw.gov.au
- Cnr Chapel Road and The Mall BANKSTOWN NSW 2200
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Newtown Local Court
- 1300 679 272
- (02) 9722 6060
- PO Box 71 BANKSTOWN NSW 2200
- local-court-bankstown@justice.nsw.gov.au
- Cnr Chapel Road and The Mall BANKSTOWN NSW 2200
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Parramatta Local Court
- 1300 679 272
- (02) 4223 3633
- PO Box 92 Parramatta NSW 2150, Australia
- local-court-parramatta@justice.nsw.gov.au
- 12 George Street Parramatta NSW 2150, Australia
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Penrith Local Court
- 1300 679 272
- (02) 9722 6060
- PO Box 71 BANKSTOWN NSW 2200
- local-court-bankstown@justice.nsw.gov.au
- Cnr Chapel Road and The Mall BANKSTOWN NSW 2200
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Sutherland Local Court
- 1300 679 272
- PO Box 37, Sutherland 2232
- local-court-sutherland@justice.nsw.gov.au
- Cnr Flora and Belmont Street, Sutherland NSW 2232
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Waverley Local Court
- 1300 679 272
- (02) 9722 6060
- PO Box 71 BANKSTOWN NSW 2200
- local-court-bankstown@justice.nsw.gov.au
- Cnr Chapel Road and The Mall BANKSTOWN NSW 2200
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Windsor Local Court
- 1300 679 272
- (02) 9722 6060
- PO Box 71 BANKSTOWN NSW 2200
- local-court-bankstown@justice.nsw.gov.au
- Cnr Chapel Road and The Mall BANKSTOWN NSW 2200
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Wollongong Local Court
- 1300 679 272
- (02) 9722 6060
- PO Box 71 BANKSTOWN NSW 2200
- local-court-bankstown@justice.nsw.gov.au
- Cnr Chapel Road and The Mall BANKSTOWN NSW 2200
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
District Courts
Downing Centre District Court
- 1300 679 272
- PO Box 71 BANKSTOWN NSW 2200
- downingcentredc@justice.nsw.gov.au
- 143-147 Liverpool Street, Sydney NSW 2000
Registry Hours: 9:00 – 4:30
Telephone Hours: 8:30 – 4:30
Days open: Mon – Fri
Parramatta District Court
- (02) 8688 7777
- local-court-bankstown@justice.nsw.gov.au
- 12 George Street, Parramatta NSW 2150
Registry Hours: 9:00 – 4:30
Days open: Mon-Fri
Penrith District Court
- 1300 679 272
- local-court-penrith@justice.nsw.gov.au
- 64-72 Henry Street, Penrith NSW 2750
Registry Hours: 9:00 – 4:30
Days open: Mon-Fri
Campbelltown District Court
- 1300 679 272
- local-court-campbelltown@justice.nsw.gov.au
- Railway Street, Campbelltown NSW 2560
Registry Hours: 9:00 – 4:30
Days open: Mon – Fri
Liverpool District Court
- 1300 679 272
- local-court-liverpool@justice.nsw.gov.au
- 150 George Street, Liverpool NSW 2170
Registry Hours: 9:00 – 4:30
Days open: Mon – Fri
Wollongong District Court
- 1300 679 272
- local-court-wollongong@justice.nsw.gov.au
- 97-99 Market Street, Wollongong NSW 2500
Registry Hours: 9:00 – 1:00 and 2:00 – 4:30
Telephone Hours: 8:30 – 4:30
Supreme Courts
Supreme Court New South Wales
- 1300 679 272
- (02) 9230 8025
- (02) 9230 8233
- GPO Box 3 Sydney NSW 2001 Australia
- sc.enquiries@justice.nsw.gov.au
- Law Courts Building 184 Phillip Street Sydney NSW 2000
Registry Hours: 9:00 AM – 4:30 PM
Telephone Hours: 8:30 AM – 4:30 PM
Days Open: Monday to Friday
Federal Court
Federal Circuit and Family Court of Australia
- 1300 352 000
- (02) 9230 8000
- GPO Box 9991, Sydney NSW
- enquiries@fcfcoa.gov.au
- Lionel Bowen, Building, 97/99 Goulburn St, Sydney NSW 2001
Registry Hours: 9:00 AM – 4:30 PM
Telephone Hours: 8:30 AM – 5:00 PM
Days Open: Monday to Friday
Federal Court
- 1300 720 980
- (02) 9230 8020
- GPO Box 9991, Sydney NSW
- enquiries@fedcourt.gov.au
- 97-99 Goulburn St in the heart of the Sydney CBD
Monday to Friday, 8:30 AM – 4:30 PM
High Court
- (02) 6270 6811
- (02) 6270 6868
- Parkes Place, Canberra ACT 2600
- enquiries@hcourt.gov.au
- Parkes Place, Canberra ACT 2600
Monday to Friday, 8:30 AM – 5:00 PM
Specialised Courts
Children’s Court of New South Wales
- 1300 679 272
- (02) 9722 6060
- Cnr Chapel Road and The Mall BANKSTOWN NSW 2200
- PO Box 71 BANKSTOWN NSW 2200
- sc.enquiries@justice.nsw.gov.au
Registry Hours: 9:00 AM – 4:30 PM
Telephone Hours: 8:30 AM – 4:30 PM
Days Open: Monday to Friday
Coroner’s Court New South Wales
- 1300 679 272
- (02) 9230 8025
- (02) 9230 8233
- GPO Box 3 Sydney NSW 2001 Australia
- sc.enquiries@justice.nsw.gov.au
- Law Courts Building 184 Phillip Street Sydney NSW 2000
Registry Hours: 9:00 AM – 4:30 PM
Telephone Hours: 8:30 AM – 4:30 PM
Days Open: Monday to Friday
Industrial Relations Commission of New South Wales
- 1300 679 272
- (02) 9230 8025
- (02) 9230 8233
- GPO Box 3 Sydney NSW 2001 Australia
- sc.enquiries@justice.nsw.gov.au
- Law Courts Building 184 Phillip Street Sydney NSW 2000
Registry Hours: 9:00 AM – 4:30 PM
Telephone Hours: 8:30 AM – 4:30 PM
Days Open: Monday to Friday
Land and Environment Court of New South Wales
- 1300 679 272
- (02) 9230 8025
- (02) 9230 8233
- GPO Box 3 Sydney NSW 2001 Australia
- sc.enquiries@justice.nsw.gov.au
- Law Courts Building 184 Phillip Street Sydney NSW 2000
Registry Hours: 9:00 AM – 4:30 PM
Telephone Hours: 8:30 AM – 4:30 PM
Days Open: Monday to Friday
