Obligations of the Lessor and Lessee
“Understand your obligations before signing…”
We are often asked by our retail clients, “which are the most important sections of the lease I should focus
on” – our general response is “all of it!”. That being said we encourage retailers to understand their
obligations recorded in the proposed lease as well as the obligations of the lessor. One will normally find
these in the sections headed “obligations of the lessee” and “obligations of the lessor”.
Be lease savvy and always remember to pay particular attention (before signing the lease) to your
obligations and any actions you may take during the lease period which requires the prior written consent
of the lessor – for instance installing signage and attending to alterations – which could be very widely
defined in the agreement.
A quick note to those of you who are will be attending to several alterations and additions to the premises
you are leasing, be sure to check that such alterations or additions remain your property and do not become
the property of lessor upon the termination of lease – you will be surprised how common this provisions is
and how widely it is drafted to include just about any addition you make to the property (including all your
unique branding and shelving you bolted to the walls which cost you spent plenty of moolah). These clauses
may be negotiated between the lessee and lessor and if they are remember to cross out the old provision in
the lease if it’s no longer applicable and insert the new agreed provision and initial next to the change.
Team PopUp ShopShop – keeping you lease savvy