A percentage tenancy agreement is a legal name describing a tenancy agreement in which a tenant pays rent to the lessor, plus a percentage of all income for the activity on the leased property. Percentage leases are available in the […] A written sublease agreement or lease may be required to be able to record all the terms of the transfer of the lease in a sustainable manner. In any case, it is a good practice, because, as the saying goes, “words fly away, but the writings remain.” Below is a brief overview of the factors to consider when transferring a lease. The transferee should ensure that he has verified the contents of the commercial lease (including the disclosure statement in the case of a retail lease). They must then verify the lease before signing the signature of the use of the assignment. This is because the agent must respect the tenant`s obligations, as if he were originally the tenant in the tenancy agreement. These obligations may include the provision of collateral and a personal guarantee. In general, rent transfers are intended to reduce the size of the rented premises and thus the amount of rent. In some cases, the objective is to completely cease the tenant`s activity at a given address. A transmission could also be carried out in order to create a common workspace with a subtenant, with which coexist a synergistic relationship and mutual benefits at work.
Tenants of commercial premises who wish to have their premises generally have to obtain the agreement of their landlord when they transfer (or “assign” the lease to another person). This also applies to subletting. The decision to transfer the lease may have consequences, since the taker may be responsible for the actions (and requests for delay) of the purchaser after the transfer, depending on the agreement between the parties and the terms of the legal documentation. Since the duration of a commercial lease is often several years, this could result in a heavy legal and financial burden, while intelligent negotiations can often lead to a satisfactory compromise in this regard. It should be noted that there are two options in principle for the transfer of a lease agreement, namely the allocation and subletting. The Retail Leases Act of 1994 prohibits the application or acceptance of the payment of the key money when approving the transfer of a retail lease.