Commercial property leases are complex and there is wide scope for disagreement to arise. Early intervention by an expert commercial property lawyer usually gives the best chance of resolving matters before they escalate.
We take a look at the most common causes of commercial property dispute and how to avoid a protracted legal case.
Commercial rent arrears and non-payment of service charges
Commercial rent arrears are the most common cause of commercial property disputes. It is important to follow the correct procedure when attempting to recover rent arrears, to ensure that as a landlord you do not inadvertently waive your right to bring legal action, should this become necessary.
Where a tenant is struggling to pay the rent, you may be able to negotiate a repayment schedule. This will avoid the need to start recovery proceedings and mean that you will not have to look for a new tenant, so in some circumstances it could be preferable to litigation and forfeiting the lease.
Our team can advise you of your options and negotiate with the tenant on your behalf where necessary. If you wish to follow the commercial rent arrears recovery route, we can prepare the necessary notices on your behalf and ensure they are served at the correct time. We can also advise you in respect of enforcement action.
The tenant is generally required to keep the property in good repair and condition, to include at the time that it is handed back. This can be a cause of serious disagreement, particularly where the repairs needed are substantial and expensive.
Disputes can also arise over liability for certain areas if this has not been clearly set out from the start. As a landlord, you may need to enforce your rights to have the property put back into a good state of repair or alternatively claim damages from your tenant.
We can advise you of what you are entitled to expect and, where necessary, represent you in bringing legal action. We act for both landlords and tenants on the Isle of Man in dilapidation disputes.
Breach of the terms of the lease
The commercial lease will contain numerous covenants requiring the parties to comply with issues including use of the property, subletting, insurance, alterations, rent and service charge payments and regulatory compliance.
Where a covenant has been breached, it is recommended that legal action is taken. Failing to deal with the matter could potentially be seen as consent to the breach and you may lose your rights to enforce the terms of the lease in the future, should you wish to do so.
We can advise you as to the implications of a breach of covenant and suggest the best course of action to resolve matters, such as negotiating new terms or requiring the breach to cease.
Ending the lease
Where a tenant wishes to end the lease, they may have options open to them such as subletting or assigning the lease. It is important that this is dealt with carefully to ensure that the landlord’s rights and interests are protected.
Where a lease has ended, a tenant may wish to negotiate a renewal. Both parties should have legal representation to deal with the negotiation and execution of the new lease.
Where a dispute has arisen regarding the ending of a lease, it can be costly to the losing party. You are advised to speak to an advocate as soon as possible to try and resolve issues at an early stage.
Commercial property dispute resolution Isle of Man
Commercial property disputes can be complex and involve substantial sums of money. We work with clients to resolve matters quickly, using methods such as negotiation, mediation and arbitration to avoid the expense of litigation wherever possible.
Contact our Isle of Man Isle of Man commercial property lawyers
If you are involved in a commercial property dispute, our team of experts will be happy to discuss the situation with you. We always aim to resolve matters quickly and efficiently, without the need for court intervention wherever possible. To speak to one of our expert Isle of Man commercial property advocates, ring us on 01624 665522 or email us: email@example.com.
Kathryn is the Head of Property at Quinn Legal
Click her photo below to find out more!