16234 Lecture Notes - Lecture 4: Contract, Lease
Document Summary
Is a legally binding agreement between a lessee and lessor in exchange for monetary consideration known as rent. Gross (everything [outgoings] included), modified gross (1st year pure gross. Rent; or net rent (rent +/- outgoings: term of the lease including option periods. Nb: retail leases are minimum 5 years in nsw: rent review mechanism. Cpi (inflation: termination clauses, permitted use, sublease /assignment. : rent review fixed amount or percentage. % or cpi which ever is the higher not permitted in retail. Ratchet clauses are not permitted in retail in reviews to market. If the property is unusable or partially unusable, the rent will be totally or partially abated: the tenant must not transfer the lease without consent of the owner. Sub lease: lessor leases to tenant for tenant pays rent and subleases the space or part of the space for sub tenant pays rent to tenant.
