Off-the-Plan Leasing in Sydney

Off-the-Plan Leasing in Sydney

Leasing off-the-plan in Sydney can be a tricky, complex and risky exercise. Proper advice should be obtained early on to ensure you understand and are comfortable with the terms of such an agreement and that your interests are protected.

Off-the-plan leasing is a promise to lease an area or premises once it has been built. That is, construction of the premises either hasn’t started or is still ongoing when you sign the contract to lease, but after construction is complete, you can occupy the space. Just like off-the-plan purchasing, it is important to anticipate and cover all potential scenarios to ensure that the terms and conditions reflect the numerous variables that leasing off-the-plan in Sydney can entail.

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Before You Move into Your Off-the-Plan Premises in Sydney

When leasing off-the-plan in Sydney you will receive two documents: an Agreement to Lease as well as the proposed lease.

The Agreement to Lease relates to the work the landlord needs to complete in order for you to be able to move in and occupy the premises.

An Agreement to Lease will contain a whole raft of terms. They generally include:

  • Details of the works the landlord is to complete;
  • When those works will be finished;
  • What happens in the event that those works contain defects; and
  • When a tenant can move in to start their own fit-out works and when those fit-out works need to be completed.

As the tenant, you should take particular note of certain factors in such agreements, such as:

  • Clarity about the sunset date, or the date by which the works by the landlord need to be completed. It is important that the sunset date is limited and certain, so that you are not waiting an indefinite period of time to move in.
  • You should confirm that the landlord is insured; and
  • The scope of works that the landlord will be carrying out covers everything you need to proceed, such as all the piping, toilet installation and sinks, etc.
  • You should be familiar with the layout of your space in order to provide the landlord with your preferred location of toilets, sinks, etc. This way, the pipes and other necessary components are cast in during the landlord work, so you won’t need to jackhammer to complete these installations after moving in.

 

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The lease itself sets out all of the commercial terms between you and the landlord. To learn more about what you should be aware of before entering into a lease, please refer to our leasing page.

We Ensure Your Lease Covers All the Hypotheticals

Leasing a property off-the-plan in Sydney can be a clever way to keep your property costs down and have a say in the construction of your premises. It can also be a complex process for tenants, since the lease must cover all the hypotheticals.

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