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Thomas
Thomas, Lawyer
Category: UK Law
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Experience:  BA (Hons), PgDip, Practising Solicitor
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Is providing a future landlord with a work to schedule of

Resolved Question:

Is providing a future landlord with a "work to schedule" of when you plan to take occupancy and commence a rental agreement on a commercial property legally binding - if circumstances change.

We issued our prospective landlord with a schedule of when we planned to move in, yet because of forces outside of our control we do not wish to move into the commercial property this month , we'd rather move in next month.

Could this cause any problems and are we legally bound by the schedule which was presented as a rough spreadsheet?
Submitted: 6 years ago.
Category: UK Law
Expert:  Thomas replied 6 years ago.

Hi,

 

Thanks for your question.

 

Have you signed any form of agreement with the landlord?

 

Could you provide some more information on what is in the "work to schedule"? Did you volunteer it or did the landlord ask for it and who signed it?

 

Kind regards,

 

Tom

Customer: replied 6 years ago.
Hi Tom,

Work to schedule

The work to schedule was basically a list of dates with goals/targets that we had laid out for certain operations/ obligations to have been fulfilled on our part.

For example, the property in question comes complete w/ 2 x 250ton power presses. On day x we would have them passed off by an inspector as being sound and fit for operation, day y wwe would have the electrician to make sure they were wired up correctly, day z we would have the air compressor housed and pipework checked from compressor to power press etc etc

If you have an email address? I can fwd you a copy of the schedule if you need a more detailed expression of whats contained in it & what exactly the property manager had.

The schedule was asked for by the property manager and circulated to the landlord

Noone signed the work to shcedule - it was provided in the form of a spreadsheet.

Agreement

So far noone has signed anything, either for the l/lord or property manager - we have seen a copy of the provisional contract (a copy that another tenant on the ind est has) which have had checked out and is sound.

Many thanks,

James


Expert:  Thomas replied 6 years ago.

Hi James

 

I'm afraid private contact is prohibited between customers and experts.

 

The "provisional contract" you refer to; is this the actual lease or something else (an agreement for lease perhaps)?

 

 

Tom

Customer: replied 6 years ago.
Its the lease agreement - it had the name and some redacted details of another tenant - but it was the lease agreement

As yet it is unsigned

According to the work to schedule we wanted to originally sign on June 1st, but because there have been a number of delays - one fo them our fault, but the other 3 are down to 3rd parties - this date is/ was not tenable

We would now like to sign on July 1st, but the property manager seems to be working under the impression that we should sign at a meeting later today the lease agreement and date it as being active from June 1st - as we said thats when we planned on being tenants in the property. Even though we are not yet the tenants and would be financially be unable to take occupancy until July 1st
Expert:  Thomas replied 6 years ago.

Hi,

 

If parties want to legally oblige prospective tenants to pre-lease works and a pre-lease schedule then they executed an "agreement for lease". This is not the lease itself, but rather a contract to enter in to a lease at a later date. You can sue under this contract obviously if the conditions are not met.

 

If the "Work to Schedule" is a document unilaterally complete by you, with no input from the landlord (or their agents) and neither party has signed it then it is difficult to see how one could claim it as an enforceable agreement for lease. They won't be able to to sue you under it for not completing the lease in the expected time.

 

There is of course the danger that they could find another tenant willing to occupy the premises immediately but I think you are in a better position to judge the probability of that, having direct knowledge of the premises/site.

 

I think you're just going to have to straight with them, attempt to postpone while emphasising your commitment to the lease and see what happens. You could attempt to negotiate a reduced rent for the period until you are able to occupy.

 

If this is useful please kindly click accept so that I may be rewarded for my time. It will be gratefully received and you will be free to ask follow up questions.

 

Kind regards,

 

Tom

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