RICS consults on Code for Leasing Business Premises to make legal drafting efficient

The Royal Institution of Chartered Surveyors (RICS) has released a consultation on the Code for Leasing Business Premises.

The Law Society, which has collaborated on the project, said RICS was “developing new mandatory requirements to ensure businesses of all sizes gain fairer, flexible leases”.

RICS also worked alongside the British Property Federation, the British Retail Consortium and the Federation of Small Businesses with the aim of producing balanced recommendations that reflect the needs and opinions of both landlords and tenants.

RICS said the aim was to “improve the quality and fairness of initial negotiations on lease terms and to promote the issue of comprehensive heads of terms that should make the legal drafting process more efficient”.

According to Chancery Lane, the lease code and heads of terms are intended to be used as a checklist for negotiations before the grant of a new lease and the renewal of a lease. If there are any departures from the lease code landlords will need to make this clear.

The lease and heads of terms are further supported by an occupier guide. The intention, the Law Society said, was that the occupier guide should be used to allow landlords, tenants and guarantors a clear understanding of their obligations.

The consultation will close at midnight on Thursday 12 April. It can be viewed here.