The Shop Lease Agreement is a crucial commercial document used in New Zealand when a property owner (landlord) agrees to lease retail premises to a business operator (tenant). This agreement is essential for establishing clear terms and conditions that govern the commercial tenancy relationship, ensuring compliance with New Zealand property law and commercial legislation. The document typically includes detailed provisions about rent, operating expenses, maintenance obligations, permitted use, trading hours, and specific requirements for retail operations. It's particularly important in shopping centers and standalone retail locations, where specific trading and operational requirements need to be clearly defined. The agreement must comply with New Zealand's Property Law Act 2007 and other relevant commercial legislation, while also addressing practical aspects of retail operation such as fitout requirements, signage, and customer access.
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1. Parties: Identification of the landlord and tenant, including full legal names, addresses, and company details if applicable
2. Background: Context of the lease agreement, including brief description of the premises and purpose of the lease
3. Definitions and Interpretation: Definitions of key terms used throughout the lease and rules for interpreting the agreement
4. Grant of Lease: Formal grant of the lease, specifying the premises and any exclusive or common areas
5. Term of Lease: Duration of the lease, including commencement date and expiry date
6. Rent and Operating Expenses: Rent amount, payment terms, review mechanisms, and operating expenses obligations
7. Outgoings and Utilities: Tenant's responsibilities for rates, utilities, insurance, and other outgoings
8. Use of Premises: Permitted use of the premises and any restrictions on use
9. Maintenance and Repairs: Responsibilities of both parties regarding maintenance, repairs, and alterations
10. Insurance: Insurance requirements for both parties, including types of coverage required
11. Default and Remedies: Events of default and consequences, including remedies available to either party
12. Assignment and Subletting: Conditions under which the tenant may assign or sublet the premises
13. Damage or Destruction: Procedures and rights in case of damage to or destruction of the premises
14. General Provisions: Standard clauses including notices, governing law, and dispute resolution
15. Execution: Formal execution block for signing by all parties
1. Rights of Renewal: Include when the lease offers rights of renewal, specifying terms and conditions for exercise
2. Fitout Provisions: Include when the tenant will be conducting initial fitout works, detailing requirements and approvals
3. Trading Hours: Include for shopping center locations or where specific trading hours are mandated
4. Marketing and Promotion: Include for shopping center locations requiring contribution to marketing funds
5. Seismic Requirements: Include where premises are in earthquake-prone buildings or areas
6. Green Lease Provisions: Include for environmentally sustainable buildings or where parties agree to environmental obligations
7. Covid-19 Provisions: Include specific provisions dealing with pandemic-related disruptions and obligations
8. Personal Guarantees: Include when personal guarantees are required from company directors or other parties
1. Schedule 1: Premises Plan: Detailed plan showing the leased premises, common areas, and any exclusive use areas
2. Schedule 2: Rent Schedule: Detailed breakdown of rent calculations, including base rent and review dates
3. Schedule 3: Outgoings Schedule: List of outgoings and proportion payable by tenant
4. Schedule 4: Fitout Specifications: Detailed specifications for any approved tenant fitout works
5. Schedule 5: Building Rules: Building rules and regulations, particularly relevant for retail centers
6. Schedule 6: Condition Report: Report on condition of premises at commencement of lease
7. Appendix A: Guarantor Deed: Form of guarantee if personal guarantees are required
8. Appendix B: Insurance Requirements: Detailed insurance requirements and specifications
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