BSS Business Legal Services: Buying & Selling Commercial Property











LEVEL 7, NO.1 CHANDOS ST ST LEONARDS NSW 2065 TELEPHONE: (02) 9439 5299 FAX: (02) 9439 6756

BSS Business Legal Services:

BUYING, SELLING & LEASING COMMERCIAL PROPERTY

This section includes some issues you should consider when buying, selling or leasing commercial property, and sets out why you should use Bull, Son & Schmidt.

1. Buying And Selling Commercial Property

When dealing with the purchase or sale of commercial property there are additional issues to be considered compared to residential property such as:

• GST implications;

• Whether the property is subject to a lease and the terms and conditions of such lease;

• Council's requirements in relation to the use of the building and any proposed development of the building;

• Essential services, in particular fire and safety issues;

• Contamination, in particular in relation to those properties which have an industrial use.

2. Leasing Of Commercial Property

Unlike leases of residential properties, commercial leases are normally non-standard documents prepared by the solicitors acting for the landlord and in most cases impose extensive obligations upon a tenant in relation to the tenant's occupation of the property.

• Common issues arising in connection with commercial leases are:

–	The tenant's proposed use of the premises and whether such use requires consent of the local authorities;
–	How the rent payable under the lease is reviewed;
–	The provision of security by way of a bank guarantee or security deposit or personal guarantees;
–	The tenant's permitted use under the lease;
–	The tenant's obligations to maintain and repair the leased premises;
–	Indemnities and releases provided by a tenant under the lease;
–	The exercise of any option to renew the lease;
–	The rights of a tenant to assign or sublease the leased premises;
–	The tenant's insurance obligations;
–	The payment of GST upon the rent and any outgoings by the tenant and/or the landlord;
–	The relevant rules and regulations of the building in which the premises are contained.

3. Retail Leases

Retail Shop Leases cover most retail type businesses including businesses in shopping centres, hairdressers and restaurants. The legislation which regulates these leases imposes obligations on both the landlord and the tenant including the requirement to sign and issue disclosure statements and the parties rights are regulated by the Retail Leases Act (NSW).

Why you should use BSS

We can give you quick and practical advice to deal with any commercial property problem you may have. If you are thinking of buying or selling property, or if you need help negotiating, preparing or reviewing a lease, call us to arrange a time to discuss the matter.

Any questions? Contact us by email (lawyer@bullson.com.au), fax (9439 6756) or phone (9439 5299).