New Code for Leasing Business Premises

New Code for Leasing Business Premises 1 September 2020

Royal Institution of Chartered Surveyors (RICS) launches new Code for leasing business premises.

The Royal Institution of Chartered Surveyors (RICS) launched the Code for leasing business premises, 1st edition in February 2020 and it will come into force on 1 September 2020.

The objective to:

• improve the quality and fairness of negotiations on lease terms
• promote the issue of comprehensive heads of terms that should make the legal drafting process more efficient

This enables negotiations to proceed properly so that each party can make an informed decision about whether to proceed on the terms that they negotiate.

The update aims to assist RICS members in making sure that landlords, tenants and guarantors who they are advising have a clear understanding of the commitments that they are entering into to improve the quality and fairness of negotiations on lease terms with a view to assisting in the circulation of heads of terms that are comprehensive and aid a more efficient legal process.

Who does the new code apply to?

The new code applies to those tenants carrying on a trade, profession or other business activities in a premises, excluding agricultural lettings, hoardings, premises housing plant and equipment, premises to be wholly sub-let or any rentals of less than 6 months.

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