One of your salespeople, Heather, is leasing a newly renovated three-storey property that has two office suites
Question:
One of your salespeople, Heather, is leasing a newly renovated three-storey property that has two office suites on each floor, totalling 6 office suites.
Four of the suites are now leased and Heather has prospective tenants for the remaining two suites.
The property is situated on leasehold land, with the lease expiring on 5 April 2026.
The lease is perpetually renewable; however, the ground rent will be reviewed when the lease is renewed and there is likely to be a very large increase in rent.
All office suites are carpeted by the landlord in a grey and black commercial quality carpet. The same carpet has been laid in all office suites and the common areas including the entry and stairwells. All office suites come with six carpark spaces, although extras are available by negotiation.
The rent, including the six carpark spaces, is $50,000 per annum for each suite.
Signage outside the building is uniform, with each tenant having a sign of 1m x 750mm installed on either side of a communal plinth.
No other signage is allowed.
Using the standard ADLS/REINZ 'Agreement to Lease' form, Heather is drafting agreements to lease for:
Suite D: Between the landlord, Mount Freisham Investments Ltd, and the tenant Pete's Party Products Ltd
Pete's Party Products Ltdintend to use the suite as offices and a showroom and would like to change the carpet from the existing grey one to a brighter purple and pink one that is more in keeping with their image.
Pete's Party Products Ltd plan to install a large purple and pink illuminated sign on a grassy area beside the communal plinth.
They would also like four weeks to fit out the premises before their lease commences.
They are asking for an initial two-year lease with a further two rights of renewal. The final expiry date of the lease should coincide with the end date of the ground lease.
At this stage, the landlord is unaware of Pete's Party Products intention to change the carpet and is unlikely to give approval unless the original carpet is reinstated at the tenant's cost at the end of the lease. The landlord is also unaware of their proposed large, illuminated sign.
Agreement schedules
In the Third Schedule, Further Terms (if any), Heather has inserted:
9.0 The landlord will grant access to the tenant from March 9, 2020 for the purposes of fitting out the premises.provide more explanation about this access and what can/cannot be needed to be included here?
Heather has given you the (below) completed agreement to lease form for your approval as branch manager before she obtains the signatures of the landlord and tenant.
Agreement to Lease
Premises: Suite D, 179 Barton Parade, Penderville
Car Parks: 6
Term: 2 years
Commencement Date: 6 April 2020
Rights of Renewal: 2 further terms of 2 years (2+2+2) or is as written, okay?
Renewal dates: 6 April 2022, 6 April 2024
Final Expiry Date: 5 April 2026
Annual Rent: Premises including 6 carpark spaces: $50,000
Deposit: $2,500
Rent Review Dates: 6 April 2022, 6 April 2024
Default Interest Rate: 14% per annum
Business Use: Offices and showroom
Landlord's insurance:
(a) Full replacement
(b) N/A
No Access Period:
(1) 9 months (default)
(2) N/A
Proportion of Outgoings:
% 100
$ 2,000
Limited Liability Trustee: N/A
Outgoings: All boxes have been ticked
Task 2
a) How will you supervise the salesperson Heather to ensure quality and compliance with these two agreements to lease? Explain the skills that you will need, and the actions you will take, to apply supervision. I have done this task a) already.
b) Double check the agreement schedules to confirm they have been completed correctly, and if you find errors in any of the agreement schedules explain and correct the errors
this is what I need some help with.
South Western Federal Taxation 2014 Comprehensive Volume
ISBN: 9781285180922
37th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young