The Role of a Lawyer in Reviewing a Commercial Lease Agreement

A commercial lease agreement (“Lease”) is a binding contract between a landlord and a tenant for the rental of commercial property. Such agreements can be complex, with various clauses and provisions that can significantly impact a tenant’s rights and obligations. It is, therefore, strongly recommended to have a lawyer review any lease agreement before signing it.

What role does a lawyer play in reviewing a Lease?

1.    Explain the Terms and Conditions

The primary role of a lawyer in reviewing a Lease is to ensure that the tenant understands the terms and conditions of the same. A lawyer will carefully review the Lease and explain the provisions and clauses to the tenant, including the rent payment schedule, maintenance obligations, insurance requirements, and lease termination clauses. A lawyer will also ensure that the agreement complies with relevant legislation and regulations, such as the Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA).

2.    Review the Rent Payment Schedule

A lawyer will pay particular attention to the rent payment schedule, ensuring that the rent amount, payment frequency, and method of payment are clearly outlined in the agreement and are in accordance with any pre-Lease negotiations / documents. Rent review clauses will also be checked to ensure that they are fair and reasonable.

Rent reviews can take different forms – such as a fixed percentage increase, market rent review, or Consumer Price Index (CPI) increase – and a lawyer will advise the tenant on the best option to negotiate and ensure that the agreed-upon rent review mechanism is accurately reflected in the agreement. Ideally your lawyer is involved in these negotiations from as early as possible.

3.    Review the Lease Termination Clause

The lease termination clauses are important to consider too. These outline the circumstances in which the landlord/ tenant can terminate the lease agreement, and includes a breach of contract, lease expiry, or mutual agreement. A lawyer will ensure that the termination clause is fair and reasonable and that the tenant’s rights are adequately protected.

The obligations of the tenant upon termination of the Lease are also important to consider in negotiations.


At D’Angelo legal we are experienced in offering lease advice and can assist you with achieving the most out of your lease. Our team places utmost importance on prompt, high quality and cost-effective service, with advice provided in plain English.

Start the Conversation by contacting us through our website or calling (08) 9381 1147.