Rent verification clauses are increasingly rare in leases, particularly STAs, because it is generally easier for the lessor to complete the termination and terminate the current lease, and then agree to a new lease on new terms. The effect that the tenant does not sign the new contract is the same as the tenant who does not accept a higher rent – that the original lease ends and the tenant moves. The only circumstances in which this is not the case are when the property has been leased either by the lessor (the tenant`s agreement is necessary and the old tenancy agreement is terminated by mutual agreement), or by the tenant (either with the requirement of a transfer or transfer clause in the contract, or with the agreement of the lessor). Although the Court has broad powers to absolve them of liability, directors would agree that it is best to avoid going to court. Understanding the specific and very specific requirements of leases will contribute to the achievement of this objective. If the administrator does not use the premises, the position is less secure and depends on the facts of the case. If, for example.B. the rent is payable monthly and the administrator provides free possession and partially waives the lease during the month, is he liable until the end of the month or only until the date of the leave? Although the administrator may pay rent to the landlord during the occupation, the landlord is nevertheless put in a difficult situation with an occupant with whom he has no direct relationship. Such an occupation is often unexpected and the owner is often “left in the dark” regarding the conditions or expected duration of the buyer`s employment, making it difficult to predict. In recent years, commercial landlords have been faced with a question more often than for a long time: what happens if their tenant enters the administration and what are their rights as landlords? To answer this question, it is important to first understand what administration is and the impact of this process on options open to commercial owners.
It is also important for business owners to think about what they can do to prevent them from dealing with a tenant in financial difficulty. The administrator will strive to achieve a better result for the company`s creditors than would be possible with a simple dissolution of the business. In essence, the trustee will use the company`s assets to pay off his debts in order to escape insolvency. An owner is a creditor of the insolvent company and the interests of the owner must be opposed to the interests of all other opposing creditors. But what is the impact on the owner`s rights under the lease? When a commercial tenant enters the administration, the rights of the landlord depend on the administrator`s willingness to use the premises for the benefit of the administration. If the administrator is in the occupancy of the premises, the rent and rates are still payable and they prevail over other debts because they are classified as administrative fees and fees. In the lease, it should be an inventory of who produces it and who bears the preparation costs.