COMMERCIAL LEASE REVIEW
Contact Neufeld Legal PC for commercial leasing legal matters at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com
Unfortunately, the legal wording of a lease agreement rarely matches the presumed straightforward business arrangements that were negotiated. Instead, there is a tendency to find hidden meanings, unexpected costs and incompatible obligations structured into most lease agreements. This isn’t necessarily intentional, but it must be dealt with correctly – otherwise you will be paying the price for not engaging the right lawyer to review the offer to lease and final lease agreement, and correct the inaccuracies and remove the hidden costs.
Why Lease Agreements Need to be Reviewed
- fails to mirror terms that were negotiated (i.e., in the offer to lease)
- contain hidden meanings in all the legal jargon
- nullify the benefit of negotiated terms with legal clauses
- imposes unexpected costs that can adversely impact your financial operations
- insert unwarranted obligations and restrictions
- fails to account for the dynamic elements of your business and its advancement
- has an inadequate exit strategy.
Reviewing a commercial lease with an experienced lawyer is a critical step for any business, primarily because these legal documents are complex, lengthy, and typically drafted to heavily favor the landlord. Commercial lease agreements invariably offer tenants few statutory protections, making them a high-stakes, binding commitment that can affect a corporate enterprise's financial viability for years. A lawyer's specialized expertise allows them to decipher dense legal terminology, identify ambiguous or one-sided clauses, and highlight the true financial exposure that extends well beyond the basic rent. This includes understanding the computation of additional rent, assessing liability under indemnification clauses, and identifying potential personal guarantees that could put your personal assets at risk if the business defaults. Without this professional legal review, a commercial tenant risks unknowingly agreeing to unfavorable terms that could lead to costly disputes, unexpected expenses, or severe limitations on the business's ability to operate, sell, or relocate.
Furthermore, a critical legal review can leverage the opportunity for negotiation and risk mitigation before the agreement is signed. Commercial lease terms are rarely set in stone, but effective negotiation requires a deep understanding of standard industry practices and a client's specific business needs. A lawyer can negotiate for critical protective clauses that a landlord's standard form may omit. By thoroughly reviewing and negotiating the lease, the lawyer ensures the terms align with the business's long-term goals and operational flexibility. This proactive investment in legal fees acts as a substantive investment against future financial burdens and legal crises, ensuring the lease supports, rather than hinders, the corporate enterprise's success.
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.
