The Sale of Land Amendment Act 2019 (Vic) will bring about some key changes regarding sunset clauses in residential off-the-plan contracts.Vendors and developers should be aware of how these changes are likely to impact their activities.Tip 4: Formally ask for the landlord’s consent to the proposed assignment The tenant should formally seek the landlord’s consent to the proposed assignment.
To ensure a streamlined process, this formal request for consent to assignment should attach: Tip 5: Allow time for the landlord to consider the application Tenants often enter into business sale agreements with a proposed assignee that do not factor in sufficient time for seeking and obtaining the landlord’s consent to the assignment.
Leases often include clauses that say the landlord must be allowed a certain number of days to consider an assignment application, once the tenant and assignee have provided all information required to process the application.
Usually leases provide that tenants are responsible for the landlord’s costs of a proposed assignment, whether or not the assignment proceeds.
Tenants may want to enquire about the landlord’s estimated costs (including the landlord’s legal fees), when asking about the landlord’s application process.
This could hold up settlement of the sale of the business by the tenant to the assignee, or cause the business sale to fall over.
Avoid some of the headaches associated with lease assignments by following the above tips!
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Experienced landlords often request a meeting with the proposed assignee before any formal application for consent to assignment is processed.
Tip 3: Consider any The assignee also has an obligation to give an assignee disclosure statement to the tenant, before the landlord is asked to consent to the assignment.[ii]When asking the landlord to consent to the assignment, the tenant must give a copy of the assignor disclosure statement to the landlord.[iii]If a tenant is unsure about whether or not the existing lease is a retail shop lease under the (Qld), the tenant should seek legal advice early.