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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 43746
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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My son took out a commercial lease with s business partner.

Customer Question

My son took out a commercial lease with his business partner. His partner was asked if he wanted a copy of the lease and said no. Since then they have tried to get a copy. The roof leaks when it rains in a few locations. They moved out 6 months ago and have been paying the rent. They still have 6 months to go. Can they get out of the lease.
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.

Good Evening

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.

How long was the lease for?

Did they have a solicitor act for them?

Was it the agent that prepared the lease or the Landlords Solicitor?

Customer: replied 1 year ago.
The lease was for two years. They did not have a solicitor. We believe the owner did the lease.
Expert:  Leon replied 1 year ago.

Good Morning

They are liable to pay for the rent until the end of the 2 years unless the landlord finds a new tenant. Once the new tenant moves in the current tenant is no longer liable.

They cannot get out of the lease unless the landlord agrees.

They have a right to have a copy of the lease and if the landlord does not give them one they can sue them to get it.

Do you know if the landlord is advertising the premises?

Customer: replied 1 year ago.
To our knowledge no. They also had another group use the premises since my son moved out and when my son found out they gave him the income for that session.
Customer: replied 1 year ago.
It was only a one day session to my sons knowledge.
Expert:  Leon replied 1 year ago.

Good Morning

The landlord has an obligation to mitigate their losses and should be trying to re-lease the premises.

When you say they have another group use the premises, do you mean they had new tenants move in?

Customer: replied 1 year ago.
This has been used as a fitness centre. They had a dance group use it and hired it to them. The landlord occupies the swimming pool area downstairs and has full access to the building. When the boys signed the lease they only occupied one large room. They later rented a further room but did not sign anything for that part.
Expert:  Leon replied 1 year ago.

Good Morning

They are liable for the rent until the end of the lease plus all outgoings as per the lease.

They have to speak with the landlord to terminate the lease and if there is agreement they only have to pay until the termination.

They have demand a copy of the lease and I also assume they have paid a bond and that bond reduces what they owe.

The landlord can sue them for the balance of the lease once it expires if they have not rented it to another person plus interest and legal costs.

So they need to be proactive.

I hope this makes sense and is of assistance.

Expert:  Leon replied 1 year ago.

Good Afternoon

I am following up my last post. if there is nothing further

thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

Please do not forget to leave positive feedback.

Regards
Leon