Agreement for Lease Subject to Planning

When entering into a lease agreement, it is important to consider whether the property is subject to planning restrictions. In some cases, a lease agreement may be conditional upon planning permission being obtained for certain use of the property. This is known as an „agreement for lease subject to planning.”

Agreements for lease subject to planning are common in situations where a landlord and tenant have agreed to a specific use for the property but planning permission is required before the use can be legally carried out. For example, a tenant may wish to open a restaurant in a building, but the property is zoned for commercial use only. In such a case, the lease agreement may include a clause stating that the lease is subject to the landlord obtaining planning permission for a change of use.

The purpose of an agreement for lease subject to planning is to ensure that both parties understand the potential obstacles and costs that may arise during the planning process. It also allows the tenant to back out of the lease agreement if planning permission is not granted.

If planning permission is granted, the lease agreement will typically include conditions that the tenant must comply with. For example, the tenant may need to make alterations to the property to meet planning requirements or obtain necessary licenses and permits. Failure to comply with these conditions can result in the lease being terminated.

When drafting an agreement for lease subject to planning, it is important to consult with a legal professional experienced in property law. The agreement must be clear and concise, outlining the specific conditions that must be met and the consequences if they are not.

In conclusion, an agreement for lease subject to planning is a crucial aspect of any lease agreement that involves a change of use or other planning-related restrictions. Tenants and landlords should ensure that they understand the implications and requirements involved in such agreements before entering into them. Consulting with a legal professional can help ensure that the agreement is fair and clear for both parties.