It is important that the parties have a legal agreement before signing a lease agreement. In this way, the parties will have the opportunity to negotiate the terms of the lease. Just because the agreement is a "standard" form does not mean that it is correct for particular circumstances. By signing the lease agreement, the parties are almost always required to sign a lease agreement in accordance with the terms of the agreement. As far as renewal fees are concerned, the commitment can last for many years. The new form is more user-friendly and has a more modern language. It is also fairer between the landlord and the tenant. We see this new form as an improvement over its predecessor. However, it would be unwise to consider the standard form as a "one-size-fits-all form." If you are considering entering into a lease or lease, we strongly advise you to seek legal advice before that date.
Many rental contracts are standard (Auckland District Law Society - ADLS). This is a fine print clause requiring the preparation of a formal lease and, until these contracts are prepared and signed, the terms of the ADLS lease apply to the parties. As a general rule, parties who wish to enter into a commercial lease generally negotiate terms first, which are then recorded in a formal lease. The reason is that a verbal agreement on the lease is only enforceable when a contract has been signed by both parties (and all sureties). This is clearly shown by the Real Estate Act 2007 (section 24). The two editions of the ADLS lease agreement form are only proposed forms, and there are two useful starting points for negotiations between the landlord and the tenant. We recommend that the landlord and tenant always rent a full deed. The aim is to avoid possible complications and/or discrepancies between the parties to a lease agreement on the terms of the lease agreement. The Auckland District Law Society`s standard rental budget, which is the "go-to-to-" contract for national landlords, has a crucial clause that was introduced in 2012, after the effects of the Christchurch earthquake on commercial tenants had. Note, however, that custom or obsolete leases (before 2012 ADLS) may not include this clause.
Before entering into a formal commercial tenancy agreement, a rental agreement is often submitted to the lessor and tenant, especially when a real estate agent is involved in the rental of the property. The agent sometimes uses his own version of a rental agreement. When agents are not involved and the parties wish to enter into a lease agreement, they often use the auckland District Law Society agreement to rent the form (currently the 5th edition version 2012). This means that the rent can be negotiated. Given the result, a fair proportion should be determined. Under the current circumstances, a 50/50 share of the rent could normally be a starting point and negotiate from it. Keep in mind that the best interest of the owners will be to take care of the tenant, because without a doubt, in the current circumstances, there will be businesses that will fail without help and the owners will therefore be faced with the prospect of empty spaces. Even if your lease is before 2012 or is custom made, this does not mean that no argument can be advanced. It is highly doubtful that the Covid-19 pandemic is a cause that has thwarted many contracts and that treaty obligations cannot be met.