FAQ's

A. Yes – A Lease can include a right for a Lessee to terminate upon specific terms and conditions.

A. No – Because a Lease is “an interest in land”. The only entities capable of having such an interest are  a) an individual or individuals or  b) a Pty Ltd Company. The business name or fund name can be mentioned in the Lessor and Lessee panels but must be in (brackets).

A. If the original tenant (transferor) prepares and serves an Assignor’s Disclosure Statement on the incoming tenant (transferee) then the transferor’s maximum liability is two years from the date of the assignment or the date of the expiry of the Lease or the date that the Lease is extended, whichever comes first. If they don’t serve the Assignor’s Disclosure Statement they remain ultimately liable if the transferee defaults until the very end of the Lease. 

The above also applies to the liability of a guarantor.

A. Subletting is a generally used term to describe the arrangement whereas an Underlease is the name for the legal documents that put that arrangement in place and on a firm legal footing.

A. Yes – A Guarantor does not have to be a Director of the tenant company and they can be completely unrelated to the Lessee.

A. We can prepare a Lease over the land which contains a provision making the Lease subject to the completion of the shed. The commencement date can be set at the estimate completion date and the rent can start once the tenant has possession. 

The main issue with this situation is whether there is enough detail such as plans and specifications to ensure that both parties expectations are the same, as it often happens that disputes arise when the Landlord thinks it’s finished and the tenant should start paying rent but the tenant feels that there is more left to complete. 

A. You need to find out if the Strata Corporation policy will cover you if a part of your office was responsible for the accident. It may be that the Strata Corporation policy only covers the common area and not your office. In any event you should check with your insurance company as well as the Strata Corporation to ensure you are covered.

A. As at 1 September 2021, there are no current rules that oblige a Landlord to Suspend or Defer Rent in South Australia.