Basic Tips in Commercial Leasehold Transactions
- Author: David Crosby
- Posted on: 8th April 2014
- Posted in: Blog
The first step once commercial lease terms have been thrashed around is to record the outline agreement in a subject to contract document called “heads of Terms”. This can be prepared by the seller’s agent, anticipating that satisfactory references have been or will be obtained by the parties themselves in the absence of any agent.
It is wise to have the Heads of Terms signed by both parties.
It is only then that the Lawyers will become involved, usually and inevitably, also discussing and agreeing who is paying whose costs (usually to include those of a Landlord’s Solicitor for the preparation of a document , the licence to Assign or Sub-let, consenting to an assignment or subletting of an existing lease).
To avoid misunderstandings or the deal going sour as money may or may not have already passed hands or costs incurred, I would recommend a brief visit to the ARICS website to view an aide-memoire model heads of terms document and go through each relevant scenario; perhaps even with the early assistance of a Surveyor. Try to obtain an early copy of the lease, look out particularly for User and onerous covenants, the state and condition of the premises and the service charge criteria.
For more information please contact Patrick Richard on 01273 734600 or email firstname.lastname@example.org to discuss your Commercial matters further.