Commercial Property

A commercial lease is one of the most common and onerous contracts that can be entered into under Scots Law. Accordingly, mastering the drafting process and an understanding of the respective liabilities and obligations arising from such contracts is crucial for fee earners working in the commercial property field.

This detailed session will provide a thorough analysis of the common issues and technical black letter law detail, to ensure all participants emerge with a better, practical understanding of how to maximise efficiency and minimise risk when dealing with commercial leases.

Background

The principle of imposing responsibility for all repairs on a non-owner can be difficult to comprehend for most clients.

A well-drafted Lease is essential from the Landlord’s perspective if it is to escape its obligations at Common Law and a failure to include the correct clauses could lead to a lease that is classed as unmarketable and institutionally unsound from an investment purchaser’s perspective.

The last thing that any purchaser buying a property with a Lease in place wants to find is a liability arising by the back door.

Conversely, from the Tenant’s perspective, it does not wish to be on the hook for issues and entries that pre-date the commencement of the contract.

A Lease that imposes substantial and/or inequitable liability on the Tenant is not going to be easy to dispose of in the event that the original Tenant wants to assign its interest.

It is therefore essential that the overall agreement is Landlord and Tenant neutral and secures the best compromise that is available, having regard to the circumstances and the bargaining position of the two parties.

Learning Outcomes

The aims of this Leasing Masterclass are threefold –

Identify the liability of a Landlord at common law (and to allow the attendee to understand why many of the clauses in the Lease are necessary from the Landlord’s perspective), inclusive of the position on “extraordinary repairs”;

Understand and Identify the “hidden” obligations of a Tenant under its duty to comply with statute in a commercial Lease eg Control of Asbestos Regulations 2012, Fire (Scotland) Act 2005, Climate Change (Scotland) Act 2009, Gas / Electrical Appliance Certification in the property, the Planning (Scotland) Act 1997 and Building (Scotland) Act 2003; the Environmental Protection Act 1990 etc; and

Identify various standard clauses in the Lease and see what revisals can be proposed from the Tenant’s perspective in order to restrict its liability.

The event begins at 2pm. Delegate registration is open from 1:30pm.