Negotiating any type of contract or agreement as a business owner can be a complicated task. Often, contracts involve significant paperwork and legalese that seem tedious, but it is crucial that parties to a contract examine these documents thoroughly. Remember, too, that in addition to these contracts being dense and complex, you can also be working against a ticking clock.
For instance, if you are negotiating a lease for commercial space, time may not be on your side. Below are a few examples of how time plays a role when it comes to commercial lease agreements in Texas.
- You might forfeit an option to renew the lease if notice is not given within the prescribed period of time. If you do not discuss with your landlord your plans for terminating or extending the lease by a certain time, you could wind up without a space.
- You could lose the space to someone else. Every negotiation should be careful and deliberate. However, if you take too much time to review a lease, or if your negotiations have stalled, someone else could potentially come in and take the space you are trying to secure.
- The lease could be terminated. If you cannot work out a solution to a dispute, for instance if you are you arguing about unpaid rent or incomplete maintenance, the landlord could ultimately terminate the lease, provided there is a mechanism for doing so in the lease agreement.
These are just a few consequences that can be realized when people fail to appreciate the importance of time during any commercial real estate leasing transaction. You don't have to race through contract negotiations and signing, but you must be attentive and active in order to protect yourself, your business and your space.
Considering everything that is at stake when it comes to these leases, it is wise for business owners and property owners alike to learn about their rights and legal options sooner, rather than later, with the help of an attorney. Failure to do so could lead to contract disputes and unfavorable agreements that negatively impact your business.