A client came to see me this morning with the intention to rent a commercial space on Elgin Street. His business is doing great and he needs to expand. So far, it is a great story, however he showed me the offer to lease that he already signed with the broker representing the Landlord. Obviously, after a brief review of the offer to lease, I noticed substantial amount of issues and the client asked me to fix these issues. However, the offer was already signed and the broker was not ready to change the terms of the offer to lease. Therefore, the lease will be based on this offer to lease.
Usually, when someone is interested in renting a commercial space, they call the broker/agent or the Landlord directly.... they go visit the space and if they are interested, the Landlord or is representative will draft a offer to lease. If the offer to lease is acceptable for both parties, it will be signed. The lease will be based on the signed offer to lease, however (most of the time) is the parties disagree with some clauses in the lease, the offer to lease will remain valid for the duration of the lease.
Therefore, it is really important that you seek legal advice BEFORE signing the offer to lease.... your business lawyer will be able to point you out any pitfalls contained in the offer to lease. Don't forget, once the offer to lease is signed, it nearly impossible to make any changes and the offer will be binding and you will be liable.
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