Why Tenants Need to Know what the Commercial Lease Register is
Since the introduction of the Property Services (Regulations) Act 2011, all commercial leases from the 3rd of April 2012 onwards should be registered with the Property Services Regulatory Authority (the “Authority”). This is what is known as the Commercial Lease Register.
A commercial lease is a lease for which Stamp Duty is paid to the Revenue Commissioners. This includes leases for offices, shops, industrial units and agricultural leases.
What is the purpose of the register?
The purpose of the Commercial Lease Register is to enable transparency in the commercial rental market. It provides a valuable source of information for those about to enter commercial leases by enabling them to view and compare the cost of similar leases entered into.
Who must file the return?
The tenant under a commercial lease or a person authorised in writing by the tenant, is required to submit details of the lease to the authority at three separate points in the life of the lease. Firstly, on creation of the lease, secondly on rent review and finally when the tenant ceases to have an interest in the lease.
Its important to bear in mind that the obligation to disclose information to the authority overrides any agreements relating to confidentiality of commercial terms.
When does the return need to be filed and how do I do this?
Tenants (be they a person, company, organisation or public body) of commercial leases are required to files return with details of their lease in the Commercial Lease Register within 30 days of either:
- receipt of the stamp certificate from the Revenue Commissioners;
- Determination of rent review; or
- Determination of interest.
It’s important to note that there is no need to submit a return regarding an “Agreement to Lease” or a Licence, however, when the Agreement to Lease comes into effect as a Lease then the required return must be made.
What details need to be submitted?
Under Section 87 of the above Property Services (Regulations) Act 2011, the following information should be provided in the Commercial Lease Register in relation to each commercial lease:
- Address and description of the property;
- Name of the tenant;
- Date of the lease;
- Length of the lease;
- Whether there is a rent review, rent free period and break clause;
- Rent payable in respect of the property;
- Particulars provided under Section 88;
- Such other particulars as may be described by regulations.
What are the implications of not registering the lease?
A person who, without reasonable excuse, contravenes the provisions requiring submission of particulars to the Authority is guilty of an offence and liable on summary conviction to a class A fine. Any person who makes any false or misleading statement or gives false or misleading information to the authority is guilty of an offence and liable on summary conviction to a class A fine or imprisonment for a term not exceeding 12 months or both.
Where do I make the registration?
The registration is made online via the Property Services Regulatory Authority’s website - www.psr.ie
FURTHER READING
- What is a Full Repairing and Insuring Lease?
WHO CHOOSE ROE SOLICITORS?
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