19 January, 2021
It is the end goal of any lease transaction to achieve an agreement that satisfies both parties' needs. The lease will dictate the complex contractual relationship between the parties to a transaction and so it is essential that all of the key points are addressed. However, at the root of any transaction it is the Heads of Terms that will detail the fundamental structure of that arrangement.
The Heads of Terms serve as a road map, helping the parties and their legal representatives to navigate the numerous flashpoints and roadblocks that might otherwise cause a deal to stall. If the Heads of Terms haven't addressed a certain issue, the legal negotiations can effectively breakdown as the respective parties clash over how they want the lease to proceed. These breakdowns are costly not just in respect of the time and money that the revisionist negotiations will incur, but also in terms of the opportunities lost whilst the issue remains unresolved. Lease negotiations are typically time-consuming affairs and so removing any potential obstructions will greatly assist the process.
Whilst we are not all blessed with the predictive prowess of Nostradamus, we can rely on the experience of others to help us to identify some of these pitfalls and snares that could potentially hold up negotiations. The support of a trusted legal adviser can be invaluable during this process and although traditionally the legal representatives will not become involved in a transaction until the document is ready to be drafted, their early guidance and advice could save you time and money further down the line.
The team at Forbes Solicitors are well equipped to assist and guide you throughout this process.