New commercial leasehold - do I have to declare any ongoing disputes?

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    New commercial leasehold - do I have to declare any ongoing disputes?

    When negotiating a commercial leasehold with a new tenant, do I have to declare any disputes with neighbors\previous tenants?

    I know when selling a property you have to declare any known nieighbourly disputes or anything which could cause a dispute, but is there anything similar when negotiating a commercial lease with new tenant?

    There's an ongoing 'disagreement' (not quite dispute) with a neighboring leaseholder in the block, but it does have a clear impact on tenant in the commercial property.

    #2
    If it's relevant then you should declare it.

    If you don't then you'll have no defense when it does impact your new tenant.

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      #3
      Is it 'legally' required though, or just 'morally'? I know when selling a property there is a specific section on one of the forms asking of this. Is there something similar when dealing with a commercial lease?

      If you fail to declare a dispute\issue when selling a property, I understand you can be sued by the buyer after the sale for not disclosing. Is this the case when it comes to commercial leases?

      This isn't for me by the way. The leaseholder\letting agent acting on his behalf seems to be doing this in a block which I'm the freeholder of.

      Comment


        #4
        I don't believe there is any requirement to disclose unless asked. "Are there any issues with the neighbours" would be sufficient.

        However if you sold me a commercial lease knowing there was a dispute that had a clear impact on that lease but not informing me about it then you could be sure that, once I became aware of the dispute,I would be sueing you for misrepresentation of the contract (lease) by omission of a material fact.

        https://harperjames.co.uk/article/co...ion/#section-2
        Many business people entering contracts assume that you can't be found to have made a misrepresentation if you simply remain silent but the law on misrepresentation is complex. Silence can amount to an implied representation. Whilst there is generally no duty to disclose facts which if known by the other contracting party would influence their decision to sign the contract there are exceptions,

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