Commercial Leasing Case Study

The key characteristics of the commercial leasing Act 1995 include that a lessor is obligated to provide any potential lessee with a copy of a proposed lease while commencing negotiation. Moreover, a lessor is also required to provide a statement of disclosure before the lease is renewed or entered into. The Act and regulations specifies the motives of a disclosure statement. Landlords are obliged to provide tenants with an annual estimate of the outgoings at the end of the financial year. The landlord has to provide this within one month before the ending of the financial year, this procedures is developed through a form of a disclosure statement. The lessor is also obligated to provide the lessee with a written report, prepared by a registered company auditor. Within the report contains a statement of all expenditure for the accounting period, furthermore lessees are required to contribute to the reports conditions. The lessor must provide this information within a time frame of three months at the end of each accounting period. However, the report will not require the preparation of an auditor if the following conditions apply ‘if there are no outgoings other than Local governments rates and charges, water and sewerage rates and insurance’ although copies of recites for all of the following expenditures are required.

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However, you are quite satisfied with the amount of space you already have, furthermore you have not officially given James permission to do so. The law states that under the South Australian Retail and Commercial Lease Act 1995 and clause 1.5, a lessor is not allowed to alter or renovate the premises without consent from the lessee. Unless the lessor has asked permission through writing or the renovation is a requirement in regards to an