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Agreements for lease

What is an agreement for lease?

An agreement for lease is a document separate from the lease. It is an agreement to enter into a lease at a later date on the terms set out in the agreement for lease and is binding on the parties.

An agreement for lease is entered into when a lease cannot yet be entered into because:

  • one or more of the critical terms of the lease, usually the rent or the commencement date, cannot yet be ascertained;
  • the premises to be leased have not yet been built or are still under construction or renovation; or
  • certain pre-conditions have not yet been satisfied.

Agreement for lease should be expressed as a deed

While it is suggested that an agreement for lease should be expressed as a deed so that there is no need for consideration to be provided before the agreement is binding on the parties, it is important to ensure that in such a case execution of the documents complies with the requirements for execution of a document as a deed. For guidance on the formal requirements for a deed, requirements for valid execution by individuals and companies, and for the requirements for signing deeds electronically, in each jurisdiction, see Tips for signing documents and What are deeds and when are they required?.

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