How can you get out of a commercial lease?

Jan 23, 2023 | Publication

It is important to know what the options are open to tenants/lessees to get out of or end a commercial lease.

It is not generally possible to just walk away from a lease.

Some of the options to ‘get out of a lease’ include to:

1 Terminate the lease. A lease may have a termination clause or break clause that can enable early termination. Careful examination of such clauses is important. There may be costs associated with exercising rights under such a clause.

2 Surrender the lease. A lessor and lessee can by mutual agreement end a lease. The terms of the surrender can be negotiated. Costs may be involved. A deed of surrender can be prepared. If properly prepared the deed can bring to an end the lease obligations.

3 Assignment of lease. A lessee can transfer its rights and obligations to a new lessee. There may be a provision in the lease which enables this to be done. The lessor’s consent may be required. There is often a provision that says that a lessor cannot unreasonably withhold consent.

4 Subletting a lease. Part or all of the premises may be capable of being sub-let.

5 Licensing. A lessee may agree to licence part of the premise. Normally a licence does not enable exclusive use of a premises.

It is important to obtain prompt legal advice regarding your options. For an obligation free consultation please call Steve McAuley on (02) 9633 1826.

The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this publication is accurate at the date it is received or that it will continue to be accurate in the future. We are not responsible for the information of any source to which a link is provided or reference is made and exclude all liability in connection with use of these sources. If you do not wish to receive newsletters from us, please let us know.

Latest Insights

How Vicissitudes Impact Future Economic Loss in Legal Cases

When it comes to calculating future economic loss in legal cases, one concept that often arises is "vicissitudes." But what exactly are vicissitudes, and how do they affect the compensation awarded to plaintiffs? In this article, we'll delve into the definition of...

Can you still make a claim?

Many claims have limitation periods. A limitation period is a set time frame within which an aggrieved person must commence proceedings in a Court. These limitation periods generally commence from the date of the injury and/or incident. Some claims however, such as...

Teacher convicted for failing to report sexual abuse of a child

Teacher, Mr Webb of Trinity College Perth, was unsuccessful in his appeal against his conviction of failing to report sexual abuse of a child in a decision delivered on 13 October 2021. In April 2017, a group of boys from the school went on a school rugby trip to...

Annual Dinner – Parramatta & District Regional Law Society

Western Sydney's legal profession gathered for the Annual Dinner of the Parramatta & District Regional Law Society at CommBank Stadium! We are particularly grateful to Dr Hugh McDermott MP, Parliamentary Secretary to the Attorney General, Senior Vice...

What compensation can I get if I have been injured at work?

If you have a work-related injury or illness, you may be able to claim compensation for lost income, medical expenses, travel expenses, domestic assistance, pain and suffering and permanent impairment. All employers are required to have workers compensation insurance...

Court makes provision for son left out of father’s Will

The recent Supreme Court of New South Wales decision of Rathswohl v Court  NSWSC 356, involved 3 siblings disputing their entitlements to their late father’s estate. The defendant, Yvette, claimed she cared for her father for the last 18 months before he...

If I die without a Will what can happen?

If you die without a Will there can be many unintended consequences. Some of these consequences may be: A person who you do not intend could control your estate.  This could even be someone you do not know.  An executor is a person who controls an estate...