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Mandatory Code of Conduct - SME Commercial Leasing Principles during COVID-19

9/4/2020

 
The Federal Government has just released its much-anticipated Mandatory Code of Conduct - SME Commercial Leasing Principles during COVID-19.

The Code adopts principles emanating from National Cabinet Meeting discussions concerning commercial tenancies and is to be implemented by states and territories through legislation or regulation. Until is it effected at a state level it has no legal force. However, landlords and tenants need to be prepared for the eventual discussions and amendments to current leasing arrangements which need to be negotiated on a case by case basis.

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What is an Agreement to Lease?

4/4/2018

 
When renting business related property it is important for both landlords and tenants to understand the relationship they are entering into and the rights and obligations that they each have, the document that governs this relationship is usually a Commercial Lease.

A Commercial Lease gives the tenant an immediate right to take possession of premises and occupy those premises to the exclusion of all others, including the landlord or owner.

An Agreement to Lease is used prior to a Commercial Lease being signed in circumstances where there are things to be done before the landlord can give the tenant exclusive possession of the premises.
An Agreement to Lease documents each party’s rights and obligations and sets down all of the requirements that have to be satisfied prior to the terms of the actual Lease taking effect.
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An Agreement to Lease can be very useful for both landlords and tenants and it is important to understand the relationship being entered into and the rights and obligations of each party.

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