Tuesday, March 10, 2009
Can you use your leased premises?
Before committing to a lease of premises, a tenant should ensure that the premises can be used for the activity intended eg sale of fashion or accessories, restaurant, cafe, fitness centre, etc. Whilst a landlord or its agent may tell you that they are willing to lease to you for your intended business, lease documents usually contain a provision stating that the landlord cannot guarantee that a tenant can use the leased premises as intended. Restrictions may come from local council regulations, or there may be an inherent restriction on the title of the property, which even the landlord may not be aware of. Further restrictions may come from licensing authorities, such as liquor or gaming licensing, or pharmaceutical boards, and other governing authorities.