Real-life lessons: the importance of legal support when renting commercial real estate
A company with foreign investments has decided to rent a building for its business. In an effort to minimize costs, they decided to draw up a lease agreement on their own, without the participation of lawyers. However, this step soon turned into serious problems for them when it suddenly became clear that important issues had been ignored.
When things don't go according to plan
Initially, everything went smoothly: the building was rented, the contract was signed, and the business started working. However, it soon became clear that the company and the owner of the building had missed one key point — who would pay the rent taxes?
This issue was not discussed at the conclusion of the contract, and, even worse, it was not spelled out in the agreement itself. When it came time to pay the tax, the problems began. The owner of the building stated that this was the responsibility of the tenant, and the company, in turn, was convinced that it was the owner who should pay the tax. Neither side wanted to take on this responsibility, which led to a serious conflict.
Unpleasant consequences
This conflict soon turned into a real legal battle. The situation was aggravated by the fact that neither side planned tax obligations when discussing lease terms. As a result, both sides were at an impasse. This not only caused friction between the tenant and the owner, but also jeopardized the entire business of the company, which could not function properly due to legal and financial troubles.
Without clear agreements, such disputes can escalate into much more serious conflicts, up to the termination of the lease agreement. And although this case has become a serious lesson for the company, it is also an excellent example of why it is important to involve professionals in checking and drafting contracts.
The solution to the problem
The company turned to us for help, realizing that saving on legal services turned into big problems. We analyzed their lease agreement and pointed out weaknesses, in particular the lack of clarity on tax obligations.
Our recommendation was simple but effective: sit down at the negotiating table with the building owner and discuss the situation. To resolve the conflict, we offered the client to conclude an additional agreement, which will clearly specify the obligations to pay taxes.
Thanks to this step, both sides were able to reach a compromise and avoid further conflicts. The supplementary agreement helped them to distribute tax liabilities and continue cooperation without further bickering.
Transparency and professionalism are the key to a successful business
This case is a clear reminder of how important legal support is when doing business. Renting commercial real estate is not just about signing a contract and paying rent. This is a complex process that includes many aspects, such as tax obligations, responsibility for repairs and maintenance, terms of termination of the contract and much more.
When it comes to such important issues as renting commercial real estate, it is better to trust professionals. Our legal team specializes in drafting lease agreements and helps clients identify weaknesses in agreements before they lead to serious problems. We analyze each clause of the agreement and propose solutions that will help avoid conflicts in the future.
By choosing us, you can be sure that all legal aspects will be carefully checked and taken into account, and your business will be protected from unwanted surprises. Do not repeat mistakes that can cost you your business — contact trusted professionals from the very beginning.
