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Commercial Property – Impact of Covid-19
Commercial Property vs Lockdown
The government announced new measures to support businesses during the pandemic lockdown. These new measures include commercial property – leasing and tenancies. Some of these measures directly affect landlords and tenants. Before the Covid-19 pandemic related lockdown, landlords and tenants had to abide by leasing and tenancy regulations. Things have changed now.
Leasing Agreement Changes
Drastic changes are in place now, with some detrimental repercussions for many landlords and tenants. As the government anticipated some of the critical issues faced by landlords and tenants, there are some temporary changes to legislation. Some of these changes have nullified a few leasing agreement clauses. These alterations went into effect, immediately after word from the chancellor and prime minister.
Implications of Closures
Commercial property landlords and tenants’ future looked bleak right from the moment the prime minister ordered the closure of bars, restaurants and non essential shops. The implications of closure implied also any newly developed or under construction or development of commercial property.
Implications and Complications
Landlords and tenants are now faced with many issues, including sanitizing of property, which will come at a possibly unrecoverable cost. New legislation allows tenants to actually withhold rent or even terminate a tenancy. But you need to get legal advice to ascertain your rights. Some options for landlords and tenants include force majeure, amending or changing clauses. But again, without legal advice, you cannot exercise your rights as a commercial tenant or landlord.
We would like to speak to any commercial property tenants or landlords facing any difficult issues as a result of the lockdown enforced by the government during the Covid-19 pandemic. SG
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