Business lease

Offices above shop
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Document overview

This is a comprehensive but uncomplicated business premises lease for letting self contained office or storage space above a shop or other workspace. There is no provision for shared services or service charge recovery. Features: guarantor provision; break provision; rent review options; options for assignment; no sub-letting; no management or service charge.
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  • Length:21 pages (6400 words)
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About this business premises lease

This is a comprehensive but uncomplicated business premises lease for a separate letting of office or storage space above a shop or other workspace.

This short term lease should be used for letting offices or other rooms above a shop or other commercial premises. There is no provision for service charge recovery.

This is a professionally drawn, very comprehensive lease with massive legal protection for the landlord including a long menu of “do’s” and “don’ts”.

This lease is not a compromise between the interests of the parties. It prefers the landlord’s interest. We think that is the best start point. If you wish to make concessions to your tenant, that is fine, but we want you have those choices.

It includes service charge provisions to provide 100% recovery of service costs.

Similar business lease agreements

If there is only one tenant in the whole building, you should use Self contained office lease agreement.

Key features

Plain English is used throughout except where it is necessary to use legal terms common in this field of law.

The key features of this template can be summarised as:

  • standard guarantor
  • options for transfer or assignment to another party
  • sub-letting forbidden
  • option to include a break clause for premature termination by the tenant
  • a choice of options for rent reviews

The law in this office lease

Business lease law is regulated primarily by the Lease of Land Act 1969. If the term of this lease is longer than ten years it must be registered at the Deed Registry Office at:

http://www.deeds.gov.za/ITSODeedsWebB/deedsweb/welcome.jsp

Lease template contents

This business premises lease is comprehensive, providing alternative choices for important decisions.

The contents include 25 provisions and 1 schedule covering:

  • rent: period, amount, other payments, interest on overdue rent, periodic review
  • condition and repair
  • tenant's positive obligations
  • restrictions on tenant: prohibited activities on the property
  • signs and advertisements
  • goods and vehicles
  • assignment of the lease
  • indemnities by the tenant
  • security deposit
  • insurance
  • access for landlord
  • guarantor
  • termination: default notice by landlord; provision for premature termination (a break clause)
  • forfeiture
  • Schedule 1: rights reserved
Sample business leaseFront cover

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