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QLD Surrendering Commercial Lease - Will I Have to Pay?

Discussion in 'Commercial Law Forum' started by Sarah E, 9 March 2016.

  1. Sarah E

    Sarah E Member

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    Hi guys,

    I bought a small business in December and signed a 5-year license / commercial lease (with a 5-year option). Due to some family situations, I need to either sell or close up. I have had no interest in people buying, however, it has become a matter of urgency to leave and move back home to my family.

    Will I be liable to pay any break of lease agreements should I close up and walk out without a new tenant? It is not my choice and I have asked my property manager what the process is, however, I have not received a response.

    I will already be losing out if I can't sell the café and don't want to have to face a break/surrender of lease fines or penalties as well.

    Any help is appreciated.
     
  2. CathL

    CathL Well-Known Member

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    It all comes down to the terms of your lease / licence. Most leases have clauses that set out the penalties for breaking the lease.

    I'd invest in some legal advice now to avoid further issues and debt following your around - see Get Connected with the Right Lawyer for You
     
  3. Sophea

    Sophea Well-Known Member

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    Hi Sarah E,

    You are bound by the terms of the lease that you have signed, therefore the contract requires you to pay out a 5 year lease. However if you break the lease, there may either be a penalty you have to pay or you may have to pay rent until it is rented by someone else. You will have to check the terms of your lease, unless you can point to some action on behalf of the Landlord that would allow you to terminate the lease without penalty.
     

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