BSBLEG528 Apply Legal Principles In Property Law Matters - Project Task 2

Assessment Task 4:

Project
Scenario.
Harold has agreed to lease a factory from James. The factory is at 123 Blight St. Sandy Beach. The premises are to be used for the manufacturing of copper Widgets. The lease is for 5 years with two three-year options. Rent is $52,000 per annum with annual CPI increases and market reviews on the exercise of the options. The tenant is to be all outgoings and land tax (if applicable) on a single holding basis. There are no landlord’s fixtures. The other terms of the lease are the usual terms found in a lease of this nature. There will be three-month rent-free period and a bond equivalent to 6 months rent.
Special conditions are required to cover the following situations:
1. Harold will have an option to purchase the building, if James decides to sell. The price will be at current market value and on a 90-day settlement.
2. Any partitioning put in by the tenant will become the landlord’s property if the tenant vacates.
3. As security for the rent, James has the right to lodge a caveat over Harold’s property.

Task
You are required to prepare the following documents.

1. A file checklist
2. The schedule to the lease setting out the relevant information
3. Draft the three Special Conditions to be included in the lease.
4. In a separate document, outline 3 duties of each the lessor and the lessee pursuant to the lease
5. Prepare a cost disclosure pursuant to the requisite legislation
6. Draft the letter to your client enclosing the lease

Make a time to meet with your assessor face-to-face or on the phone to review the documents.