REIQ Commercial Tenancy Agreement digital file?

Discussion in 'Property Management' started by Jane_W, 24th Aug, 2018.

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  1. Jane_W

    Jane_W Member

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    Hi

    I rang REIQ about purchasing a copy of their Commercial Tenancy Agreement (as their website was very vague) and was shocked that they can only post out hardcopies in the mail and you have to buy a pack of 3. Seriously? Is there no PDF or digital copy available? Can anyone point me in the right direction to a link? Thanks so much for any help with this.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Become a member of REIQ, use the link available to members.
     
  3. Jane_W

    Jane_W Member

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    I don't qualify to become a member. Are you saying that a digital version does exist? I just need this form as a once off.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    It does exist but to access the online versions of forms you must be an agent.

    Your alternatives are:
    1. Become an agent & join the REIQ;
    2. Pay an agent who is an REIQ member to prepare the agreement;
    3. Engage a solicitor to prepare the agreement; or
    4. Buy a book of forms.
    Is the tenant bearing the lease preparation cost?
     
  5. Jane_W

    Jane_W Member

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    Thanks for the rundown of options. It sounds like buying the hardcopy form is the best way to go. No, the tenant isn't bearing the lease preparation cost and we just want to draw up a new agreement, honouring their existing terms with a couple of clarifications and our details as the landlord (buying a property with a tenant in place).
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Has the current agreement expired? Do they need to surrender the current Lease?
     
  7. Jane_W

    Jane_W Member

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    No, the current lease hasn't expired, with 16 months left plus a 1 year option. It does have some issues though that need to be rectified, like specifying the rental amount in the third year of term and the option period (which are not currently mentioned).
     
  8. Jane_W

    Jane_W Member

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    Is there a way to amend the current lease instead of drawing up a new one?
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    Depending on the agreement a variation of lease may be possible.
     
  10. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Unless it is a residential tenancy then the tenant usually pays. How are you going about cancelling the old lease if you are doing up a new one? Why net get a lawyer to do it so done correctly.
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    That'd cost money. :rolleyes:

    Why fork out hard earned $$ to a lawyer when you can write it up yourself to protect your asset?
     
  12. Jane_W

    Jane_W Member

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    Yep, we've already spent way too much on our lawyer dealing with other issues. Can't afford to give them another cent. They have already looked over the current lease and have advised of the issues.

    A bit of background as I know it's a slightly strange situation. The tenant is actually a conveyancing lawyer himself and has been in the property for many years. Apparently he had a handshake agreement previously and the current owner (who's only owned the property for about 18 months) did up a quick REIQ agreement, albeit with some holes. We just want a new agreement with the same conditions and dates (keep everyone happy), but with us as the self-managed landlords and detailing CPI increases for the rest of the term.

    I thought this would be a simple thing to do but am now confused about how to cancel his current lease or whether we should be amending his current one?
     
  13. Scott No Mates

    Scott No Mates Well-Known Member

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    The lease generally advises that the adjustment will be by CPI on the anniversary of commencement, as CPI is not available until 3-4 weeks after the end of a quarter, the number (or factor) is not available until then. If the clause refers to the last published CPI before the anniversary, it may be 3 1/2 months prior to the review date.

    The reference to the managing agent can be easily changed, the notice of attornment from the solicitor advises the tenant of the new landlord details, you need to advise of new banking/self-management details & contacts.
     
  14. Jane_W

    Jane_W Member

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    Thanks for this. It's all starting to make more sense now. Might be easiest just to leave the contract as is. We have the notice of attornment and have advised the tenant of our account and contact details. The only issue really is that the contract doesn't state a rent review date for the third year and option period. But we'll cross that bridge when we come to it. Better to keep the tenant onside and get the relationship off to a good start :)
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    Generally the rent review is defined rather than put in a schedule (though I have seen this done with some fixed reviews), so it will be in the rent review clause - eg: to be adjusted by XXX (CPI/Fixed % etc) on the anniversary of commencement date.

    Likewise the rent at commencement of the option - this will more often than not be in the option clause section rather than in the rent review. When the option is exercised, then a new lease which mirrors the existing lease is prepared and issued (main changes are the commencement date/rent & removal of the clauses which refer to the current option).