15 Sep Commercial Lease Agreements Covid
However, regardless of the legal framework, it will in most cases remain in the interest of both parties that tenants` businesses withstand the persistent difficulties caused and continue to be caused by the outbreak of the coronavirus. Given the sudden and negative impact on cash flow for most tenants, the smartest option for landlords and tenants might be to agree on practical and commercial solutions to navigate the coming months. Under the new regulation, parties to an affected lease must now enter into negotiations within 14 days of a request for a rent facility or other schedule agreed between the two parties. The amendments are intended to help commercial landlords, tenants and borrowers through the COVID-19 situation. They are relieving businesses to help them stay solvent during the pandemic, which will help New Zealand`s economic recovery. They are part of a wider package of State aid to businesses. Given the unprecedented nature of the COVID-19 pandemic, there is little precedent in this direction, but the courts may offer relief in the future to tenants affected by COVID-19 according to this doctrine. . . .