A Guide to Resolving Commercial Lease Disputes Amicably
- Written by Scene Magazine
Resolving a commercial lease dispute can be a complex process depending on the nature of the building, whether the dispute has been lodged by the owner or tenant and the terms of the lease at the time of signing. Thankfully, there are some practical strategies both tenants and building owners can utilise in order to resolve these types of disputes fairly and amicably. If you’re currently in a commercial lease dispute and don’t know what next steps you need to take, or you’re thinking of launching a dispute pertaining to a commercial lease, here’s a quick guide to resolving commercial lease disputes amicably.
Understand the Lease Agreement
The first thing you need to do when it comes to resolving commercial lease disputes is thoroughly review the lease agreement. Disputes often arise from misunderstandings or misinterpretations of lease terms at the time of signing. Commercial leases are highly specific in their language and detail, so it’s important to make sure you understand every clause as well as your responsibilities under the agreement. If you’re confused about any of the terms of the agreement or you’re seeking specific advice about part of the lease, it’s best to consult with a commercial lease lawyer.
Communicate & Negotiate
Some commercial lease disputes can be resolved simply by facilitating open communication between landlord and tenant. If you do plan to engage in communication regarding a lease dispute, it’s important to ensure you document everything. That means keeping a detailed record of all communications, agreements and issues mentioned. This can be crucial information if the dispute escalates to litigation or a tribunal. Having a detailed record on hand of emails, letters and notes from meetings can mean the difference between securing a favourable outcome for the dispute or having to pay out thousands in legal fees.
Attempt Alternative Dispute Resolution
If proceeding to court seems excessive for both parties, some commercial leases include an arbitration clause, which can be a quicker and less expensive alternative to litigation. Arbitration can be a good option if the tenant and building owner are on relatively good terms and can solve the matter using a third-party. Alternatively, lodging a small civil matter through a civil court or tribunal can easily settle smaller monetary disputes. Civil tribunals such as the Victorian Civil and Administrative Tribunal (VCAT) are accessible for both parties without proceeding to full litigation.
Seek Professional Legal Advice
If negotiations fall through or you’re simply not able to move the needle on lodging a dispute with the other party, consider hiring a lawyer who has expertise in commercial lease disputes. A lease dispute lawyer can provide legal advice specific to your situation and the commercial lease laws in your state or territory. If possible, a commercial lease lawyer can also help mediate the dispute, acting as a neutral third party, which can be a highly cost-effective alternative to reach a resolution without going to court.
