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Agreement to Lease

An Agreement to Lease is a binding pre-lease agreement, setting the conditions for completing the lease.


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Document Overview

An agreement to lease is a separate deed to the lease. It is entered into when one or more critical terms of the lease (such as the construction of premises or some other issue like development approval) cannot be established at the time the lease is signed.

Note that this agreement to lease is a bare bones precedent. It does not contain complex provisions about construction timetables (where the premises are yet to be built) or sunset dates. Where these are required you will need to think very carefully about what is required and the time frames.

This agreement assumes that there will be a guarantor who will guarantee the performance of the tenant's obligations under this agreement?

This agreement must be signed as a deed to the effective.

Related precedents

An agreement to lease should have a lease attached to it that will take effect once the precondition(s) in the agreement for lease have been met. The agreement to lease will have an authorisation clause for the landlord to complete things such as start dates etc.

What does the Agreement to Lease cover?

  • Both parties' obligations until the lease commences.
  • The nature of the guarantee.
  • The legal costs of preparing thel lease, which the tenant will cover
  • General terms and conditions including dispute resolution.

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