05 Jan Why a Lawyer Is an Essential Part of Commercial Property Purchase
When it comes to buying or leasing property for commercial business, much must be considered. It is essential to have professional legal advice from a lawyer who is experienced in commercial property transactions to ensure success. It is not only property law that they should know about, but related aspects such as taxation, finance, retail and commercial leases, trusts and corporate law.
Many business people prefer to lease property to conduct their business in because purchasing property can be a very expensive option and prevents easy move if the location is not as good as you expected. But even though it is more affordable – at least in the short term – there are still many things to consider when it comes to the legalities.
- The lease terms and conditions must be gone over carefully to ensure they are favourable to you and not just to the landlord.
- Rent reviews should be considered because you don’t want the cost of the rent to go up exponentially while you are still getting your business established.
- Security deposits should be considered carefully to ensure they too, are affordable.
- What about repairs and maintenance on the property? Not all of them fall to the landlord, but you should not have to pay too much for these. And you should know which ones are your responsibility.
- Subleasing rules are also an important part of the whole. There are times when you might want to sublease, but if your lease does not allow for it you won’t be able to.
- Renewals can also work against you unless you have good legal advice. You need to know when renewals are due and what you can or can’t change in the previous agreement so it suits you better.
- Insurance is always a necessity for business. If you don’t get the right insurance and enough of it, you are just throwing money away. But getting it right can certainly keep you in business should disaster strike.
Many of these topics can be quite complex and can really impact your business in a negative way if you are not careful. You should never sign a lease that is drawn up by your potential landlord’s solicitor without having your own legal person examine it first. There are many clauses that can be inserted into a landlord’s lease that work in his favour and to your detriment, costing you a great deal more than it should.
Your lawyer can point out what these can mean to your business for the future and can amend them to make it more suitable for you. It will then have to go back to the landlord’s lawyer for their own examination and hopefully approval, before it is signed.