One issue on this standard form is the start date. The parties should look beyond paragraph 1.3, which has a gap to be filled for the start date of the lease. Elsewhere in the lease agreement, paragraph 3.3, delay in possession, provides that if the lessor does not deliver the premises to the lessee by the original scheduled date, there is no fine, unless the lessor delays the delivery of the premises by 60 days. In this case, a tenant only has the option of terminating the lease. This section also provides that if the premises are not delivered within 120 days of the start date, the lease ends automatically. These two paragraphs can become problems in case of dispute over construction delays for the tenant, improvements in the premises, especially when the lessor is responsible for the work. This form is used by tenants who have the opportunity to purchase the premises to inform the landlord of their intention. Note that this form refers to the STANDARD AIR Offer, Agreement and Fiduciary Instructions for the purchase of real estate that should be pre-negotiated, completed and appended to the lease agreement by the parties. When dealing with the specific language in the corresponding paragraphs, a tenant must object to the requirement that he bear the costs of repair or compliance with the law when compliance is triggered after the expiry of the landlord`s six-month guarantee period, especially in the case of a short-term lease that enjoys the essential benefit of respect for the lessor. In addition, a tenant should object to the language that gives the lessor the right to terminate the lease if the compliance is caused by reasons outside the tenant`s use. The tenant must not lose his lease for something that the landlord must repair even after the tenant`s extracts. A tenant should consider revising the amortization period to apply it to the “useful life” of the item and not to the 12-year period of the form.
In addition, tenants should try to delete or amend section 49 to find that the landlord must ensure that the premises will at least comply with disability legislation or that they will do so to the beginning. Air Forms Lease: Partial damage — Insured loss. Paragraph 9.2 of the AIR forms provides that when damage occurs and the repair costs are less than or equal to 10,000 USD, the lessor has the option of giving the tenant the proceeds of the insurance and letting the tenant carry out the repairs. I would delete the sentence that the owner, who makes the product available on a “reasonable basis”, must immediately pay these revenues to the owner. In addition, this can be changed so that the lessor carries out the repairs, even if the cost is less than 10,000 $US. In addition, the tenant may be responsible for a discrepancy between the insurance income that the lessor receives and the actual cost of repairing the damage. Most importantly, the landlord may have a loophole to terminate the lease if only partial damage occurs and due to the “singularity of the improvements” there is a gap in insurance payments. The customer should amend this provision.
The part of 9.2 in which it begins: “If such funds or insurance are not received, the lessor may nevertheless choose, within 10 days, by written notification to the tenant, to amend the provision that says: “. or (ii) terminate the lease 20 days later. If you make a deal, you need contracts….