QLD Renewing Lease Option?

[proudsmile]

Hi there,

I leased a commercial building for 5 years with an option for a further 5. As part of my contract, I'm supposed to let them know of my intentions to continue the lease no later than 3 months before the end of the first 5 years, which I did as I do want to renew for 5 more years.

Now I'm in a situation where my landlord told me he's going to sell the building to someone else and I don't know if this will mean the new owner will ask me to leave.

My current contract ends in 1 month. Is there any legal binding to this option for a further 5 years for us tenants? Like, when I officially said I was going to renew? Or is this 5+5 option useless?

Thanks in advance.

 

[Hayder Shkara]

If the lease is registered - they will be bound by the lease and will be hard for them to get out of. If they really wanted to, they will look for a clause in the lease or any reason to have you evicted. But your rights as a tenant are strong.

 

[proudsmile]

Thank you so much Hayder. But the fact that I haven't yet signed a new lease, I only demonstrated my interest in renewing, is that still binding?

This is stressing me so much as I know discovered that this new person wanting to buy the building is in the same industry that I am so it's too much coincidence and doesn't sound right, I'm afraid they'll want me to leave to use my space to do the same thing for them.

When you sign a contract with a landlord and they sell the building does the contract still remains on the same conditions as before or the new owner will draw up a new contract?

 

[Hayder Shkara]

If you've already entered into a lease that has given you the option to renew your lease, the new owner is still bound by that option. You will just have to make ensure you are in full compliance of the lease - and check the lease for the terms that permit the landlord to terminate the lease.

I'm happy to talk over the phone to just ease your mind on this one. You can book an appointment on lawtap below, no charge.

 

[proudsmile]

Thanks Hayder, much appreciated. I'm new to this forum, just recently joined. But I'm happy to pay for an appointment as well, that's not a problem. I'm very worried about this as everything just looks very suspicious with this person wanting to buy.

I'm an excellent tenant, never missed rent in the last 5 years, my landlord always says I'm very good and he told me couple of days ago that I'm not going anywhere but I don't feel secure because of this owner being the same profession that I am and all that just now that I'm 1 month away from finishing the first 5 years so all just doesn't make sense.

Funny enough one of the other tenants in the building I am is a lawyer and he does commercial, he's just fitted out his office a few months ago so he's secured as his lease is new. Wondering if I should speak to him.

I'm also inclined to speak to me landlord tomorrow and ask him to just draw up the new contract already so I can sign that and then even if this person buys it and wants to use my space he won't be able for another 5 years.

My concern of not signing anything now is that they could buy the building and then say the lease is much higher than what I have now in a way to make it impossible for me to renew.

 

[Hayder Shkara]

My suggestion - ask the lawyer in the building for advice on the terms of the lease - he may have it fresh in his mind as he just would've read it before he got into the office.

Alternatively you can ask me to review it for you and advise you accordingly.

Try and sign the renewal of the lease asap. There should be limitations of rental increases included in the lease so don't stress.