Trakti Smart "Legal" Contracts Blog


on October 6, 2023

The commercial lease agreement is made between the landlord, the legal owner of the property, entitled to grant the Lease, and the occupier (Tenant). It is important to check that no other person has the benefit of rights or restrictions over the property which would impact on the tenant. This is called investigating title. The property needs to have the necessary planning permission to allow the tenant to carry on his business. On completion of the Lease the Tenant will be legally liable to pay Stamp Duty Land Tax. If the Lease is for a term of more than 7 years, it will need to be registered at the Land Registry. Commercial Leases are usually granted for a “fixed term” which means the Lease will start and end on the fixed dates specified in the Lease. The Lease may, however, provide for either party to terminate the Lease at an earlier date; this right is referred to as a Break Right.

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