17. REGISTRATION OF THE LEASE
- If the term including options is greater than 3 years, the Landlord should register the Lease on the title.
- If the Lease is not registered, then a purchaser of the land may not be required to recognise or be bound by the Lease.
- If there is a mortgage registered over the freehold interest in the property, we recommend that you obtain the consent of the Landlord’s mortgagee to the grant of the Lease. If the consent of the Landlord’s mortgagee is not obtained, the mortgagee may not be required to recognise or be bound by the Lease.
18. PERSONAL INSURANCE
- As the Lease is a considerable financial commitment, Tenants and guarantors need to ensure that they have adequate personal insurances to be able to meet all their financial obligations in the event that accident or illness (for themselves, business partners or family members) prevents the business from operating as intended.
- Tenants should consult with a risk insurance advisor to implement whatever insurance policy safeguards are available for their circumstances.
19. RETAIL SHOP LEASES ACT
The Retail Shop Leases Act imposes strict disclosure obligations upon both the landlord and the tenant:
- Landlord’s disclosure obligation to Tenant
At least 7 days before the Tenant signs a lease, the Landlord must provide a draft of the lease and a disclosure statement.
- Tenant’s disclosure obligation to Landlord
After the Tenant receives the Landlord’s disclosure statement and before signing the lease, the Tenant must give the Landlord the following documents:
- a disclosure statement
- a financial advice report
- a legal advice report
20. OBTAIN LEGAL ADVICE
- As the information in this document is not legal advice but merely some suggestions as to issues that ought to be considered by a tenant.
- As each and every proposed lease must be considered separately, you should obtain legal advice prior to committing yourself to any lease of a retail or commercial premises.