The landlords’ ability to recover legal costs for preparing, negotiating and finalising a Commercial Lease will depend on the terms of the Agreement.
The landlords’ legal costs for preparing, negotiating and finalising a retail lease are not recoverable from the tenant under any circumstances, even if the tenant decides at the last minute not to go ahead with the Lease. A landlord is also prevented from recovering from the tenant expenses such as land tax under a retail lease. The landlord can, however, recover from the tenant costs that are reasonably incurred in connection with a proposed assignment, investigating a proposed assignee of the lease and obtaining any necessary consents to the assignment.