It was once the case that the lessee was liable to pay for all lease costs. This included the legal fees involved in the preparation of the lease itself. However, it is more common now for the parties to the transaction to agree to pay their own legal costs. Where possible, your Sydney Commercial Lawyer should ensure that the issue of costs are dealt with from the onset so as to avoid ambiguity and dispute down the track. Other fees and costs which should also be dealt with include registration and lodgement fees.
Under the Retail Leases Act 1994, a lessor is generally liable for the costs involved with the preparation of a retail lease (and the lessor may not recover those expenses from the lessee). The Act does not prohibit the lessor accepting security bonds, rent in advance, payment for goodwill (where a business is being sold with the lease), payment for plant, equipment, fixtures and fittings (where they are sold with the lease) or franchising fees. It also allows recovery of reasonable amendment expenses where amendments need to be made to the lease at the prospective lessee’s request under certain circumstances.
For more information, contact our office and arrange a consultation with a Commercial Lawyer. Other than our head office in Sydney CBD, we also have branch offices in Parramatta, Hurstville, Liverpool, Campbelltown, North Sydney, Gordon and Baulkham Hills. For a full list of our office locations, with complete addresses, click on our Locations tab above or contact our main office line on (02) 9233 4048.
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