Why do I need an Agreement to Lease?
An Agreement to Lease is signed as part of negotiations for a lease. It usually contains conditions or requirements to be met before the actual lease starts, such as completion of fit-out works or renovations, obtaining third-party consents (eg, building consents) or the existing tenant moving out. Once these conditions are met, a more detailed and formal lease (known as a ‘deed of lease’) is signed. The Agreement to Lease sets out the key terms of the lease and creates a binding obligation on both parties to sign the deed of lease if the conditions are met. If the conditions are not met (or not met in the agreed timeframe), the parties are not committed to signing the deed of lease.
Without an Agreement to Lease, any discussions about fit-out works, renovations or key lease terms may not be enforceable. It gives both parties certainty.
Save time, money and stress by using an On Your Terms Agreement to Lease to get your specific arrangement clearly documented and enforceable in New Zealand.
Who’s an Agreement to Lease for?
Any tenant, landlord or real estate agent negotiating a new lease where certain conditions or requirements need to be met before the lease starts. Not every new lease arrangement will require an Agreement to Lease – if the premises are ready for the tenant to move in right away and no work is required, an Agreement to Lease is likely unnecessary, and the tenant and landlord can go straight to a deed of lease.
What’s in an Agreement to Lease?
NZ lawyers have designed this Agreement to Lease for NZ businesses (not other lawyers). It is simple, easy to understand, without unnecessary legalese and fair to both sides, to reduce negotiation time and keep the relationship positive.
In the agreement, the landlord agrees to grant a lease to the tenant. The key terms of the lease are set out (such as rent, rent reviews, initial term, rights of renewal, and permitted use), and the form of the deed of lease that will be signed is agreed (eg, Auckland District Law Society Inc. deed of lease). There are optional provisions for landlord works to be carried out before the tenant moves in (with expectations around timing and the ability to cancel if the works are not completed in time). There are also optional provisions for a guarantee, bank guarantee, deposit, rent incentives and early access to the premises for the tenant.
How long will it take me to create my Agreement to Lease?
Approximately 15 minutes – wherever and whenever suits you! You will need to complete the questions within 10 days of purchase (following that your access will expire). Please reach out to us at hello@onyourterms.co.nz if you have any issues.
What information do I need to complete the Q&A?
- The name and contact details of the tenant, landlord and any guarantor(s) of the tenant
- Details of the premises and the landlord’s fixtures and fittings
- Details of any works to be completed by the landlord before the lease starts and the expected completion date
- Key terms of the proposed lease – lease term, commencement date, rights of renewal, rent, rent review dates (and method), permitted use of the premises, outgoings, insurance requirements and the form of deed of lease (eg, Auckland District Law Society Inc form or the landlord’s own form)
- Details of any personal guarantee, bank guarantee, deposit, rent incentives and early access to the premises for the tenant
What if I need help?
On Your Terms has teamed up with Luminate Legal to offer its customers the option of obtaining legal advice from a lawyer to provide extra assurance and peace of mind. If you would like to ask a lawyer some quick questions about your document (or your responses to the Q&A), or have your document reviewed/edited by a lawyer, click here to view and select Luminate Legal's packages and fixed-fee pricing exclusively for On Your Terms customers.
What do I do once my Agreement to Lease is created?
The Agreement to Lease is ready to sign as soon as you have downloaded it and attached the relevant schedules. All parties must sign it to ensure it’s legally enforceable. Any changes to the form of Deed of Lease that the landlord and tenant have agreed will be signed must be stated in the Agreement to Lease. Therefore, the tenant, landlord and guarantor (if there is one) MUST read and understand the Agreement to Lease and Deed of Lease and get legal advice if needed.
Further resources and help:
- Check out these blogs: How can I get out of my business lease early? Who can sign legal documents in New Zealand?
- You may also find these bundles or documents useful for your business: Property Licence, Sublease, Deed of Surrender of Lease, Deed of Assignment of Lease, Deed of Variation of Lease.
- Check out our FAQs here.
If you’re unsure whether this agreement is what you need, reach out to us at hello@onyourterms.co.nz – we’re happy to help!
If you’re not satisfied with your purchase of this product for any reason, let us know why within 10 days of your purchase and we’ll work with you to make sure you’re happy, including giving you a full refund if necessary.
Disclaimer: On Your Terms was created to provide fast, easy and affordable access to legal information and documentation. We are not a law firm and do not provide legal advice. The information and documents we provide are of a general nature, designed for common situations and may not be suitable for your needs or circumstances. If you need legal advice, we have a network of specialist law firm partners able to help you here.