Head of real estate and commercial law practice
Specialist in the field of commercial law and process. Real estate, construction support; land law and protection of property ownership.
Non-residential premises lease agreement
The concept of a non-residential premises lease agreement
Leasing non-residential premises is an important part of doing business in Ukraine. It is the lease agreement for such premises that is the key instrument regulating the relationship between the landlord and the tenant, providing a legal basis for using the premises for commercial purposes. The key features of such agreements are the following:
- firstly, under this agreement, the lessor transfers to the lessee the right to temporary use of non-residential premises for a certain fee;
- secondly, after the expiration of the term or early termination, the lessee is obliged to return the premises to the lessor without the possibility of further use for business;
- finally, like any other official civil law agreement, the non-residential premises lease agreement must contain mandatory details, i.e. essential conditions (identification of the parties, description of the premises, purpose of use, amount of rent, etc.).
You can learn about other important nuances of lease agreements by reading the article by our specialized lawyer. In this article, we will examine in more detail the features of the form and content of the agreement under study.
What are the essential terms of a non-residential premises lease agreement?
A lease agreement for non-residential premises is valid if it contains a number of essential conditions. These conditions are:
- parties (can be legal entities, individuals or individual entrepreneurs). The contract must indicate the full details of its counterparties;
- subject of the agreement. The subject will be non-residential premises that are leased and the purpose of its use. Therefore, it is necessary to clearly describe such premises (address, area, technical characteristics and condition). The agreement may also include a technical passport, a location plan and a description of the property transferred together with the premises;
- term, amount of rent, procedure for its payment. As a rule, a non-residential premises lease agreement is concluded for a period of up to three years with the possibility of its renewal. At the same time, if the term exceeds three years, the agreement is additionally subject to state registration;
- rights and obligations of the parties. This item must also take into account the possibility of imposing legal liability for improper fulfillment of the terms of the agreements (may include penalties, the right to terminate and other measures). First of all, it is important to prescribe liability for late payment of rent, use of the premises for purposes other than their intended purpose, damage to property, failure to fulfill obligations to maintain the property (if necessary), etc.
- other significant conditions. These may include conditions regarding the valuation of the object, for example.
For more detailed information regarding the terms of the specified agreement, you can contact our qualified lawyer and receive professional legal advice.
Support from a specialized lawyer
Pitfalls of a non-residential lease agreement
Renting non-residential premises is an important step for any business, which in the absence of a responsible approach from the counterparties can become quite dangerous. Therefore, to avoid unpleasant surprises, it is necessary to carefully check the property and the counterparty, as well as carefully analyze the terms of the contract itself. Key criteria for checking the property should include:
- analysis of title documents (confirming the landlord’s ownership of the premises);
- review of information from the Land Registry (verification of the absence of encumbrances on the premises);
- legal due diligence of the counterparty (verification of the business reputation of the person).
In addition, it is important to pay attention to the terms of the contract extension, in particular the presence of such definitions as “automatically” or “by consent of the parties”. It is worth understanding that in the first option the contract is extended unless one of the parties informs otherwise, in the second – the extension occurs exclusively with the consent of both parties, is formalized by an additional agreement. However, it is advisable to avoid unclear wording and to prescribe all conditions in detail (in particular, regarding the termination of the contract). The same applies to the rent, determining the frequency of its increase and the conditions for increasing it.
Support in the development of a non-residential premises lease agreement by a lawyer from “Prikhodko and Partners”
The law firm “Prikhodko & Partners” provides comprehensive support for the development of a lease agreement for non-residential premises, which includes the following services:
- first, consultations and analysis to clarify the client’s needs, analyze the documents provided, assess risks and provide recommendations on the optimal terms of the contract;
- second, development of a draft contract (formulation of clear and unambiguous provisions that minimize risks for the client);
- third, preparation of annexes to the contract (deed of acceptance and transfer, description of the premises, technical passport, etc.);
- fourth, coordination of agreements through negotiations with counterparties (including making the necessary changes and additions to the project if necessary).
Thus, a non-residential premises lease agreement is a key instrument for regulating relations between the landlord and the tenant. It is important to clearly describe the non-residential premises, indicate the purpose of use, determine the procedure for paying rent, and take into account other “pitfalls” of such agreements. Timely seeking legal assistance will help avoid unwanted problems and ensure the success of the transaction.
Lawyers at Prikhodko & Partners provide a full range of services for drafting a lease agreement for non-residential premises. To find out the price of such legal support, fill out the form below.
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Yes, of course, we take companies for permanent support.
The subscription form of service allows you to receive a full range of legal services on an ongoing basis for a fixed monthly fee.
Our lawyers will accompany all economic legal relations of your company: from drawing up contracts and solving corporate issues to representing interests during inspections by regulatory bodies and in court disputes.
We have very flexible pricing, so contact us and we will discuss your specific case.
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Fortunately, modern technologies allow us to effectively solve almost any legal issue online regardless of your location. In cases where personal presence is necessary, our lawyers are ready to travel to any point in Ukraine. Moreover, thanks to our network of reliable partners abroad, we can provide legal support even in international cases. Our goal is to provide you with quality legal assistance wherever you are.
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