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NSW Commercial Lease - How Can We Get Out of It?

Discussion in 'Commercial Law Forum' started by Walker, 1 December 2014.

  1. Walker

    Walker Member

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    My husband bought a takeaway business near Penrith in 2011. We sold it it in November 2013. The shop had a 5 year commercial lease. The landlord's solicitor would not release us from the lease, and I think the term is the purchaser is the assignee and we are the assignor or to be blunt guarantor.

    The new owner of the business walked out 3 weeks ago, and was also behind $5,700 in the rent which we were not told about. It took us 4 days to clean the premises and we have advertised and trying to find a new tenant and hopefully take us off the lease. The landlord's solicitor has advised the landlord to change the locks so we now cannot show people through the shop.

    Our solicitor told us that we will have to give him particulars of any person who wants to see the shop and he will submit him to the landlord's solicitor. The only one here benefiting is the solicitor. We are financially stressed and not to mention we are in a really stressed way ourselves. The lease does not finish until November 2016. We do have a solicitor acting for us.

    Now what happens under commercial law? Does the landlord have to try and find someone for the shop? What about the equipment; does that get taken into account? Or does the landlord sit it out for 2 years and let us wallow in misery and have to remortgage our home? We are trying to do the right thing but we seem to be the ones getting penalised. If we find a buyer, it's in everyone's best interests.
     
  2. Sarah J

    Sarah J Well-Known Member

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    What does your lease agreement with the landlord say? Are you directly leasing from the landlord or are you sub-leasing?
     
  3. Sarah J

    Sarah J Well-Known Member

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    Take a look at the following to get a better idea about retail and commercial leases:

    - Small Business Commissioner NSW: "retail and commercial leases" (you can try contacting the Small Business Commission about this matter)

    It is quite difficult to advise without knowing the terms of the agreement and whether the landlord is in breach of them or whether the terms infringe any statutory provisions or not. Certainly, changing the locks on the premises so you are denied possession whilst still paying rent is not allowed.
     

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