The lease document is the tenant's title. It grants the tenant's right of occupation and sets out the duration, financial and other terms of that occupation.
It is essential for both landlord and tenant to have a clear, well-drafted lease that correctly sets out the terms of their agreement.
Issues that must be addressed in every lease include:
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an accurate description of the premises;
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the duration of the lease (term);
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any option to renew or extend the term;
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rental, terms of payment and GST;
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the manner and frequency (if any) with which the rent will change during the term (rent review);
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costs associated with the use of the premises; for example, water, electricity and gas consumption charges;
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costs of maintaining the premises and related fixtures; for example air conditioning;
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use the tenant may make of the premises;
- asignment and subletting; and
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bonds, guarantees and other security.
In Western Australia there is further, specific law governing retail shop leases; namely the Commercial Tenancy (Retail Shops) Agreement Act 1985. The Act's primary objective is to create greater equality of bargaining power between parties entering into retail shop leases. It does so by creating rights and obligations, mostly in favour of the tenant, as follows:
- requiring the landlord to give the tenant a comprehensive disclosure statement prior to the start of the lease;
- establishing a consistent process for rent reviews;
- giving the tenant a 5 year minimum term;
- regulating the way in which the landlord can charge certain expenses to the tenant; and
- giving access to the State Administrative Tribunal's mediation and dispute resolution mechanisms.
When does the Act apply?
The Act covers parties involved in retail/commercial leases for shop premises:
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of 1000 square metres or less in area;
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tenanted by businesses that are not public companies;
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tenanted by non-retail businesses located in a shopping centre (of 5 or more retail shops or specifed businesses); and
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where the tenant's business is a specified business; for example dry cleaning, hairdressing, beauty therapy, shoe repair, video store or some petrol station agreements.
Once the lease is on foot, any changes to its terms should be clearly documented to protect the interests of both parties.
Common examples are:
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Extension: to formalise the extension of the term after the tenant exercises the option to renew;
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Assignment: by which a new tenant (assignee) assumes the rights and obligations of the outgoing tenant (assignor);
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Variation: to formalise other changes to the terms.
In Western Australia the Transfer of Land Act (TLA) governs the registration of titles to land and dealings on those titles. The TLA provides for the registration of a lease for any term (excluding options to renew) exceeding 3 years for freehold land or exceeding 12 months for Crown land.
The written consent of any mortgagee or annuitant registered in priority to the lease is required.
To be accepted for registration the Lease must be prepared on (or include) the relevant form published by Landgate, which must be signed by both parties.
If you want advice on a lease prepared by another party, consult us at an initial consultation before you sign the lease, take possession of the premises or start paying rent.
We offer fixed price services for preparing straightforward leases and related documents.
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What we offer
We will:
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take your instructions at a short consultation;
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prepare a draft document based on the instructions you give us at the consultation;
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for retail shop leases, prepare the disclosure statement based on information provided by you;
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send the draft document to you and make any minor changes you may require;
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send the drafts to the other party and make any minor changes they may require; and
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arrange for the lease to be executed and a copy given to both parties.
The above includes a reasonable allowance for correspondence and telephone calls. |
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Fixed prices
| Short consultation |
$99 |
| Commercial lease |
$1,100 |
| Retail shop lease |
$1,300 |
| Extension, assignment or variation of lease |
$550 |
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Things you should know
The above charges apply to straightforward leases. If you require a more complex lease we will give you a quote at an intial consultation.
Additional services
The following services are not included in the fixed-price; however, if you require them, we welcome the opportunity to give you a quote or estimate of charges:
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negotiating with the other party or making substantial changes to the lease;
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preparing security or other documents required as part of the transaction;
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registering the lease or any caveat at Landgate.
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How to instruct us
Arrange a short consultation:
- use our online booking request
- or telephone 9220 4437 (1800 018 845 freecall from regional Western Australia) during business hours. If you're not booking online, you could save time at the consultation by completing our Initial Consultation Form (PDF document) and bringing it with you to the consultation.
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