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What legal steps should I take before signing a lease agreement with a commercial landlord?

Picture of Chris Battis By   ·  1 minute read

Before signing a lease agreement with a commercial landlord, there are several legal steps you should take to protect your interests. Here are some suggestions:

  1. Review the lease agreement carefully: Before signing the lease agreement, make sure to read it carefully and understand all of its terms and conditions. Pay special attention to the rent amount, security deposit, length of the lease, renewal options, late fees, and any restrictions on use or occupancy.
  2. Negotiate the terms: If you are not satisfied with some of the terms in the lease agreement, you should try to negotiate with the landlord to see if any changes can be made. For example, you might ask for a lower rent amount, a longer lease term, or more favorable renewal options.
  3. Obtain legal advice: It is always a good idea to consult with an attorney before signing a lease agreement. A lawyer can help you understand your rights and obligations under the lease, as well as any potential risks or liabilities. They can also help you negotiate better terms or suggest alternative options if the lease is not favorable.
  4. Conduct due diligence: Before signing the lease, it is important to conduct due diligence on the property and the landlord. This may include reviewing the landlord's financial statements, checking for any liens or encumbrances on the property, and researching any potential zoning or regulatory issues.
  5. Obtain insurance: Depending on the nature of your business, you may want to obtain insurance to protect yourself against liabilities and losses. For example, if you are operating a restaurant, you may want to obtain liability insurance to protect against accidents or injuries on the premises.
  6. Complete necessary documentation: Before signing the lease, make sure to complete all necessary paperwork, such as a security deposit agreement or any addendums to the lease agreement.

By taking these legal steps before signing a lease agreement with a commercial landlord, you can ensure that your interests are protected and that you are making an informed decision. If you have any doubts or uncertainties, it is always best to seek legal advice to ensure that you are making the right decision.