Heads of Agreement – Commercial Leasing

Property Law: 13 March 2024

Author: Lauren Woolley & Ralph Davies - Our People

The first step to securing a non-retail commercial lease is often execution of a ‘Heads of Agreement’. This is a document signed by both tenant and landlord in anticipation of executing a formal lease, used during the negotiation stage of leasing wherein both parties recognised the key terms of the lease (such as the lease term, financial provisions and details of the premises).

These agreements provide reassurance in leasing negotiations, securing essential commercial terms whilst enabling the parties to negotiate finer details at a later stage.

Although a helpful tool to secure a commercial premises, caution must be exercising when signing a Heads of Agreement as the agreement may be binding. Therefore, we recommend you seek advice before executing this document as you may be agreeing to certain legal obligations.