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NSW Commercial Lease - What are My Right under Commercial Law?

Discussion in 'Commercial Law Forum' started by Denis West, 22 October 2015.

  1. Denis West

    Denis West Member

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    In July, 2014 as owner of commercial premises, I entered into a commercial lease with tenants for one year with a five year option followed by another five year option.. Although the tenants have written indicating they wish to take out the initial five year option, they are balking at signing the commercial lease and despite repeated requests to them for the last three months, this has not happened .

    While I understand that all the conditions agreed in the initial one year lease apply to subsequent renewals and they have continued to pay the rent accordingly, commitment to a lease by them and security of tenure, is preventing me from refinancing, selling or even using the equity in the premises as security for other ventures.

    Any thoughts on my rights under Commercial Law in this situation would be greatly appreciated.
     
  2. JS79

    JS79 Well-Known Member

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    Denis,

    As this is affecting your ability to exercise your rights on your property, I strongly suggest you seek legal advice from a property lawyer who specialises in commercial leases to review the contract and to suggest avenues you can take with the tenants either to have them sign the lease or vacate the premises.

    See Get Connected with the Right Lawyer for You
    to be connected to a local property lawyer.
     
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  3. Denis West

    Denis West Member

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    Thank you, JS79.
     
  4. James D. Ford - Solicitor

    James D. Ford - Solicitor Well-Known Member
    LawTap Verified Lawyer

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    Hi Denis,

    The Lease will specify the process - (normally notice in writing - by post, or fax) which MUST be followed to exercise the option, and the date by which the option needs to be exercised to be valid. An email might not be sufficient, it will depend on what the Lease requires.

    If the tenants have validly exercised their option (according to the requirements of the Lease), both yourself and the tenants are legally bound to sign the new 5 year lease.

    Please let me know if you need assistance to resolve this matter.

    Kind regards
     
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  5. Denis West

    Denis West Member

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    Many thanks, James for your rapid response and help. Hopefully this will resolve the matter but I thank you for the opportunity to get back to you if I need further help which is also very much appreciated.

    Regards
     
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