Most quality lease contracts have a provision for assignment to a new business owner in the event you sell your practice.
Normally, the landlord’s consent and approval must be obtained, however an acceptable clause will stipulate that the landlord cannot unreasonably withhold approval.
Without a reasonable assignment clause, your ability to sell your practice may be impeded as you will be at the mercy of your landlord.
Just as important is the actual wording of an assignment clause. There are examples of clauses that are at the total discretion of the landlord or require full negotiation of the lease at time of the assignment. These types of clauses are not equitable.
Your lease contract is one of the biggest contracts into which your business will enter so scrutiny of all elements of your lease contract by your solicitor prior to execution is always highly recommended.
Let us help you with your next lease negotiation.
ProVision’s Mark Corduff can be contacted on 03 8544 3914 or business@provision.com.au.
