Is your lease established to support your practical growth and flexibility, with appropriate options to renew or sell them if you are ready? Here are some important things to consider when checking the conditions of a dental lease. What will happen to the lease if a dentist dies or becomes disabled? As a general rule, no standard lease will allow the dentist or the dentist`s estate to be exempt from liability. The dentist or discount must continue to pay the rent on the basis of the terms of the tenancy agreement. Therefore, the dentist should always try to negotiate the release or termination of the lease if the tenant (dentist) dies or is disabled, in exchange for paying several months` rent after such an event. Allocating rent: The award of the tenancy agreement means that the tenant transfers the entire tenancy agreement to a new tenant. The rental language generally requires the “prior written consent” of the lessor, which allows the lessor to refuse consent for any reason. As mentioned above, the lease agreement should provide that the lessor`s consent to an assignment “is not withheld in an inappropriate manner.” The lease should provide flexibility to the tenant if the tenant decides to sell his practice. As lawyers for medical and dental office rentals, we advise and represent clients in guaranteeing office rents and help protect their long-term interests. It is important to negotiate all important aspects of leasing – including tenant improvements, signalling options and lease renewal options – at the beginning of a lease agreement; Otherwise, all the bargaining leverage has been lost. As buying buildings is expensive, with some debts that come with commercial real estate ownership, you will probably be advised to acquire the property as a separate business from your dental practice. In other words, it is not the practice that buys the building, so there will be two separate companies: the rental company and the tenant company. Their office lease defines the relationship between these two companies, defines their obligations and carefully separates them for various legal and accounting reasons. A dentist chooses to create his own dental practice, either by purchasing an existing practice or from scratch.
It ends negotiations on the rent of the new practice, which includes free rent, extension options, tenant allowances. He`s excited and looking forward to signing the lease. If you own the building, you still need a rental contract, as your practice remains the same and the value assessed is always determined by the equipment, the value (patient) and the teeth rental contract. The owner gives him a rental contract that appears to be a standard rental. As “any other” tenant has signed the “same” lease, the landlord asks him to sign the lease. Should he? No – not without consulting a lawyer. Therefore, the author recommends that a dentist incorporate some “teeth” into the attribution language that allow for greater flexibility when he or she decides to sell the practice. He strongly suggested that the dentist include the following language in each transfer clause: that the lessor could not unduly withhold consent to the assignment; that the lessor must consent if, at the time of signing the lease, the buyer essentially has the same net assets and credit history as the seller; that the lessor cannot refuse an assignment on the basis of tenant mixes or tenant inclusions if the agent is a dentist; That the selling dentist be exempt from liability at the end of the existing lifespan; that the lessor does not have the right to adjust the rent to the market price on the basis of a transfer; and that the owner does not have the right to claim a portion of the proceeds of the sale at the time of the sale of the business. Climbing clause: Commercial rental contracts often contain a rent-to-rent clause, in which the base rent is multiplied by a percentage derived from a given index.