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Port Macquarie Office Ph: (02) 6584 9522
Meryllyn Page
Conveyancing
LEASING
Here at Meryllyn Page Conveyancing we take instruction to prepare and provide advice on the preparation and interpretation of Tenancy Agreements, Commercial Leases & Retail Leases.
Leasing is a process by which our firm can obtain the use of certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. The lessee is the receiver of the services or the assets under the lease contract and the lessor is the owner of the assets.
The relationship between the tenant and the landlord is called a tenancy, and can be for a fixed or an indefinite period of time (called the term of the lease). The consideration for the lease is called rent. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership eg. lawnmowing, washing machines.
There are different types of ownership for land but, in common law it states, the most common form is the fee simple absolute, where the legal term fee has the old meaning of real property, i.e. real estate. An owner of the Title holds all the rights and privileges to that property and, subject to the laws, codes, rules and regulations of the local law, enter into contract or grant, permit another to have possession and control of the property through a lease or tenancy agreement.
For this purpose, the owner is called the lessor or landlord, and the other person is called the lessee or tenant, and the rights to possess and control the land are exchanged for some payment (called consideration in legal english), usually a monthly rent. The acceptance of rent by the landowner from a tenant creates (or extends) most of the rights of tenancy even without a written lease (or beyond the time limit of an expiring lease).