Property Law >
 Frequently Asked Questions

I have found a property I want to lease. Should I just negotiate with the owner?
Unlike residential leases, commercial leases tend to be non-standard documents so you will need to make sure the lease is appropriate for your purposes. While you can negotiate the lease with the owner, commercial leasing is a costly area to get wrong. It is important that before you sign any document you have a solicitor review it to ensure that all items match your understanding of the agreement with the landlord and that you are fully aware of what your responsibilities and rights are under the lease.
How do I know this lease is right for me?
Commercial leases are complicated and you should ask for a draft lease to allow you to consider such issues as whether the location, space and permitted uses are appropriate to your business, how much it will cost and how frequently rent will be reviewed, your outgoings and the cost of fitting out the space, what equipment and services are included and what repairs and maintenance will fall to you rather than the landlord.  You should also have a clear understanding of what process will apply if a dispute arises with your landlord.  If you are unsure of any of these things, don’t sign until they are clarified.
Is there a difference in leasing retail premises compared to office space?
In WA, legislation such as the Commercial Tenancy (Retail Shops) Agreements Act applies to certain leases.  Under this legislation, there are obligations for the landlord to provide a disclosure statement to the lessor, a draft of the proposed lease, a tenant guide and an operating expenses budget prior to any lease commitment.  These documents should be obtained and the lease inspected before you sign anything.
What happens if I sell my business? Must the landlord let me assign the lease of the shop to a new owner?
You must seek approval from the Lessor in writing. The Lessor can’t usually withhold consent except on reasonable grounds, but might charge you the cost of investigating the potential assignee.
My shop’s landlord wants to charge me for things I thought were his responsibility. What do I do?
Under the terms of your lease, your landlord may compel you to cover operating expenses or outgoings, which can be things such as operating, repairing or maintaining the premises, such as paying for cleaning, insurance, security and covering rates and taxes. All operating expenses – and the proportion you will be asked to pay – have to be set out in the lease or in the disclosure statement and budget. You cannot be charged for capital expenditures.
What happens if my landlord and I disagree over the lease?
The Commercial Registrar can often assist in disputes, acting as a mediator.  These can include disputes over things such as rent reviews.  More complex matters can be referred by the Registrar to the Commercial Tribunal.  If a dispute continues, however, you should seek legal advice about whether you should pursue formal legal action.
How do I avoid legal pitfalls in my lease?
You can make an appointment with Havilah Legal to have your lease negotiated before signing., If the matter concerns you, consult our Legal Information Desk lawyer Ken Eastman for advice. For the fixed-fee of $35 for a 20-minute appointment, he can give you a clear indication of your position and offer expert advice on what steps you need to take and how to proceed.