Lease Implementation - Negotiation & Drafting

Contact Neufeld Legal PC for commercial leasing legal matters at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

It is extremely important that leases are carefully reviewed, negotiated and drafted, otherwise the financial costs and/or legal problems that can arise from an incorrect or inadequate lease agreement can be quite harmful to your business. A well drafted lease agreement is the foundation for its successful enforcement, with the objective being to avoid the necessity to proceed to lease enforcement and litigation.

LEASE NEGOTIATIONS

A Simple Truth

Lease negotiations are never a simple task, and if done incorrectly or ineffectively, can result in unnecessarily accepting higher financial costs and greater legal responsibilities.

Negotiating Paradox

There is a fundamental paradox that resides at the core of successful negotiations: generating value and claiming value. You generate value for the other side by presenting the benefits that satisfy their financial demands, while placating their concerns. Meanwhile, it is necessary that you concurrently claim sufficient value in the transaction, which is only possible by not giving too much away. This is can be a very delicate balancing act, which can easily be tipped against you with inadequate legal counsel.

Lawyer’s Role to Negotiations

Correctly utilizing the right lawyer early in the negotiation process can have significant benefits to obtaining a more favorable result, including:

- focusing on the real objectives

- eliminating distractions and insignificant matters

- defusing emotion (emphasis on business practicalities)

- precluding hidden costs and obligations

- experience – an invaluable resource

- research and adaptation of appropriate legal precedents

- role assumption: devil’s advocate; good cop - bad cop

- making it workable (some strategies simply don’t work) - maintaining legal compliance

LEASE DRAFTING - ACCURACY IS IMPORTANT

Because of technological innovation, the art of drafting an effective lease agreement is being replaced by an over-reliance on templates and standard form agreements. This is a dangerous trend, since it frequently results in a deviation from negotiated terms and/or imposes unwanted and inappropriate obligations and restrictions on the parties. Given the importance of most lease agreements to a business’ success, such imprecision should not be permitted in your lease drafting and that is why you need the right lawyer to draft a lease agreement that advances your business, not impede it.

Importance of a Clear and Concise Lease

- saving future time, money and business relationships

- minimizes animosity, so that business relations are progressive, with issues capable of acceptable resolution

- fighting against confusion and misunderstanding – thereby avoiding costly court litigation (and if taken to court, you can understand your rights as they have been clearly set out)

- protecting you from negotiating away important rights and safeguards

- obtaining important concessions and benefits from the other side

- identifying traps and pitfalls in the other side’s requests

- specific to your business operations and financial concerns

For knowledgeable and experienced legal representation in negotiating, reviewing and drafting lease agreements, and protecting your business’ legal rights thereunder, contact lease lawyer Christopher Neufeld at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or Chris@NeufeldLegal.com.

Major Differences in Commercial Leases - Canada vs USA

Click on for More Commercial Leasing Videos