This is the first time the form of deed of lease has undergone such an extensive review since 2012, and the revised Deed includes a number of amendments which reflect the changes in law and practice over the past 12 years.
Some of the main changes included in the revised Deed are:
- Rent: in addition to CPI and market reviews, there are now options for fixed rent reviews along with cap and collar and interim rent provisions.
- Outgoings: the outgoings provisions have been updated to reflect industry feedback and provide a more comprehensive list of inclusions.
- Health & Safety: new provisions have been included for compliance with the Health and Safety at Work Act 2015.
- Reinstatement: the tenant’s obligations regarding reinstatement have been amended to collate all obligations in one clause rather than being scattered throughout different clauses.
- Insurance: the insurance provisions have been amended to reflect current market practice.
- No access in emergency (including pandemics): there is arguably more flexibility for rent abatements with options to ascertain upfront what a “fair proportion” of rent will be.
- Renewal of Lease: the parties can now specify a notice period to renew rather than rely on the default three month notice period.
- Bank guarantee and rental bonds: new provisions have been added to provide such options as security in the case of default rather than needing to draft bespoke provisions.
- Seismic rating: there is a new option for the Landlord to provide the Tenant with information on the building’s seismic rating.
- New schedules: new schedules have been included to provide for tenant’s fixtures and fittings.
The TLANZ Deed is a widely accepted and recommended template for commercial leasing transactions in New Zealand and provides a standardised framework which complies with relevant New Zealand legislation including the Property Law Act 2007. Negotiating a commercial lease agreement can be complex and daunting, using the TLANZ Deed provides a solid foundation, but expert legal guidance ensures optimal outcomes.
Please contact us for our invaluable expertise, whether you are a tenant or a landlord we can help you navigate your lease agreements with confidence.
