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Pre Lease Agreement Template for England and Wales

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Key Requirements PROMPT example:

Pre Lease Agreement

"I need a Pre Lease Agreement for a retail unit in Manchester city centre, where the tenant will need to complete significant fit-out works before occupation, and we're aiming for lease completion by March 2025."

Document background
The Pre Lease Agreement is utilized when parties have agreed in principle to enter into a lease but require certain conditions to be met before the formal lease can be executed. This document, governed by English and Welsh law, typically includes specific details about the property, proposed lease terms, conditions precedent, timeframes, and any required works or modifications. It provides legal protection for both parties during the pre-lease period and ensures clarity regarding their respective obligations. The agreement is particularly valuable in complex commercial property transactions where there may be a significant gap between initial agreement and lease completion.
Suggested Sections

1. Parties: Details of the landlord and prospective tenant

2. Background: Context of the agreement and property details

3. Definitions: Key terms used throughout the agreement

4. Agreement to Grant Lease: Core obligation to enter into the lease

5. Property Description: Detailed description of the premises

6. Conditions Precedent: Prerequisites that must be satisfied before lease grant

7. Lease Terms: Key terms of the proposed lease

8. Deposit Requirements: Details of any required deposit

9. Timeframes: Completion dates and key deadlines

Optional Sections

1. Works Provisions: Details of any works to be carried out before occupation

2. Planning Permission: Requirements for obtaining planning consent

3. Break Rights: Provisions for early termination

4. Survey Rights: Rights to survey the property

5. VAT Provisions: Treatment of VAT for VAT-opted properties

Suggested Schedules

1. Draft Lease: Form of lease to be entered into

2. Property Plan: Plans showing the property

3. Specification of Works: Details of any required works

4. Conditions Schedule: Detailed conditions precedent

5. Form of Rent Deposit Deed: Template for rent deposit deed if deposit is required

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




































Clauses






























Industries

Law of Property Act 1925: Primary legislation governing property rights and interests in land, including requirements for legal estates and interests in land

Landlord and Tenant Act 1954: Regulates commercial property rights and security of tenure provisions for business tenancies

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract to which they are not a direct party

Misrepresentation Act 1967: Deals with false or misleading statements and representations made during contract negotiations

Land Registration Act 2002: Sets out requirements for registerable interests and determines priority of interests in land

Consumer Rights Act 2015: Provides protection for consumers, relevant if dealing with residential property or individual tenants

Stamp Duty Land Tax Legislation: Governs tax implications and requirements for property transactions

Contract Formation Principles: Common law requirements including offer, acceptance, consideration, and intention to create legal relations

Doctrine of Constructive Notice: Common law principle regarding knowledge of facts that would have been discovered by reasonable due diligence

Law Society's Standard Commercial Property Conditions: Professional standards and conditions commonly incorporated into commercial property transactions

RICS Professional Standards: Professional requirements and guidelines set by the Royal Institution of Chartered Surveyors

Agreement vs Lease Distinction: Legal distinction between an agreement to lease and the actual lease, affecting rights and obligations

Conditional Agreement Requirements: Legal requirements for conditions precedent, time limits, and execution requirements in pre-lease agreements

Break Clause Requirements: Legal framework for including and exercising break clauses and termination rights in property agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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