Many businesses occupy premises leased from another party. An option is a term in the lease agreement which allows a tenant the right to renew their occupation of the leased premises before the tenancy ends. The tenant does not have an obligation to renew, whereas the landlord does not have the right to deny the tenant from exercising the option unless there has been a breach.
The option is beneficial to the tenant as it provides for security of tenure if they so wish. Landlords, too can benefit as it can provide continuity of rental income without the need to find a new tenant.
Particularly important matters to be aware of, for both tenant and landlord, concerning the exercise of an option are ensuring:
- that the option is exercised in the prescribed manner;
- that the option is exercised within the required timeframe;
- awareness of any specific rights or obligations that come with the exercise of the option.
Disputes often arise around whether an option has been exercised or not. In these circumstances, it may be necessary to peruse emails and other correspondence between the parties to determine the matter. At Szabo & Associates Solicitors, we can advise on the rights and opportunities that arise and assist in the processes.
Contact our Commercial Property Lawyers in Sydney, NSW
Whether you are a landlord, tenant, or managing agent, Szabo & Associates Solicitors has the experience and expertise to help with your commercial property matter. If you need advice on any aspect of your lease or dispute, please contact us on {{CONTACT_NUMBER}} or fill in the online contact form.