The world of commercial conveyancing is arguably more complex than that of residential conveyancing. Whether it’s a lease or a sale and whether you’re the landlord of the incoming leaseholder, the ease of the process is ultimately helped or hindered by your acting solicitor.
This is one of the reasons why Team NYL is on a mission to demystify much of the jargon that surrounds commercial property contracts. Here’s a starter for ten…
1. CovenantA documented agreement between two or more persons to do or not do something. You’ll find a number of covenants in any conveyancing contract, be that for a sale or rental.
2. Authorised Guarantee AgreementsThis agreement obliges an outgoing tenant to guarantee that the incoming tenant will “perform,” i.e. adhere to all covenants in their commercial lease. This applies to tenants who sell on their lease before the term has expired.
3. Security of TenureThis term indicates that once a business tenant’s lease expires, they have the right to request a new lease on the same terms as before. The landlord does, however, have a statutory right to refuse this, e.g. if they wish to redevelop the premises or if the tenant previously breached one of their covenants.
This is just the very tip of the commercial conveyancing iceberg. Do check back next month for more terms made simple! In the meantime, if you need help with your commercial premises contract in the Scarborough, Whitby and York areas, please get in touch here.