Repairs and Commercial Leases

If you are considering entering into a commercial lease, it is important to know what your legal obligations are, or you could find yourself in trouble. Part of this is ensuring there is absolute clarity regarding liability for repairs. Thus you may ask yourself: is it the duty of the landlord, or the tenant?

Liability for Repairs

Before signing a commercial lease, you need know who is responsible for carrying out repairs to the business premises, and what the term ‘repairs’ entails. In Scotland, however, there is no clear-cut answer to this question. This is because under Scots law, the person liable for repairs will depend entirely upon the terms of the lease. Indeed, there is very little legislation relating to commercial leases. Therefore each party must agree upon all the terms of the lease which will, once signed, become a legally binding contract.

More often than not, the landlord will stipulate that the tenant must be responsible for repairs. This may include:-

Design defects which have caused damage to the building – eg. damp or subsidence;
Repairs required by new Acts of Parliament;
Internal repairs to the building, such as air conditioning or other equipment;
Any repairs demanded by the landlord at the end of the lease.

If a tenant is subject to such clauses under the lease, they will find themselves in an unfavourable position which could prove to be extremely costly, both in terms of time and money. That is why if you are a tenant, it is absolutely crucial to negotiate the terms of lease before you sign anything.

Negotiating the terms of the Lease

When negotiating the terms of a lease, the first step should be to seek the services of a solicitor who specialises in commercial property. While you may wish to avoid any additional expenses, having a legal expert on your side will undoubtedly prove to be cost-effective in the long-run. Their professional eye will quickly spot any pitfalls in the contract, while their negotiating skills will ensure you won’t find yourself in a difficult position later down the line.

Looking for Legal Help?

If you are looking for help with a commercial lease, contact McKay Norwell today and speak to a solicitor. Perhaps you need help drafting a lease? Or you are in a dispute over liability for repairs? Whatever the nature of your legal query, we promise to be of assistance. From our base in Edinburgh we offer a professionals and reliable service for clients across Scotland.

Simply call us for a free assessment immediately on 0131 222 8000 or complete the enquiry form on the right of this page and we will be delighted to help you.