It is important to ensure that your lease terms for your commercial tenancy adequately reflects and fits the requirements of each party – Lessor and Lessee.
In 2010 and 2011, the Christchurch earthquakes provided business operators and building owners with significant physical changes to the business landscape. Many business operators were unable to access their premises either through the failure of the building structure, or by the exclusion of access in certain Civil Defence areas. Many leases were found to provide difficulties for business operators and to ‘terminate’ their lease where the building remained undamaged and fit for use, but the building could not be accessed in the Civil Defence ‘red zone’.
Whilst an Auckland District Law Society Lease attempts to capture common requirements of parties for the lease of commercial premises, (items such as turnover rentals, first right of refusal on purchase of the freehold, shopping mall promotion levies and committees, resource consent conditions, subleasing, maintenance and removal of fixtures and fittings) there are often items that require further clarification or provision for within a lease.
When exercising any right, power, or remedy, a Landlord must ensure that the lease and the Property Law Act has been adequately complied with. In particular, the Property Law Act provides a significant ‘code’ that must be followed for the benefit of both parties that provides the party who is in breach to take the opportunity to remedy the particular breach that is complained of.Let's chat