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Be Lease Savvy (Part 2/3)

Posted by Thandi Mbizela on November 4, 2015
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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the lease if it’s no longer applicable and insert the new agreed provision and initial next to the change.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

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