Short Story Series: The True Cost of Skipping a Commercial Lease Review

Karunn Shahani

Principal Lawyer and Managing Director

The True Cost of Skipping a Commercial Lease Review

I asked a client what they paid their last lawyer. Nothing. He signed the lease himself to save $3,000.

The $3,000 Mistake: A Case Study

Three years later, here's where he stood:

  • Locked into a 5-year term with no exit clause

  • Personal guarantee secured against his family home

  • No clear subletting rights if the business slowed down

  • Rent reviews tied to CPI with no cap

The business hit a rough patch. He needed out. There was no way out. He came to us when the landlord was threatening to enforce the guarantee.

The Reality of Negotiating After Signing

We did what we could, but the lease was signed. The terms were locked in. Negotiating from that position cost him far more than $3,000.

Why Commercial Leases Are Never "Standard"

Commercial leases aren't standard documents. Every clause is negotiable before you sign.

Key Terms That Define Your Risk

Exit rights, subletting, make good obligations, rent review mechanisms—these are the terms that define your exposure for the entire lease term.

How a Specialist Protects Your Assets

A specialist reviews the lease, flags the risk, and negotiates better terms before you're bound. That's the work that protects you.

Skipping a legal review to save a few thousand dollars on a multi-year, six-figure commitment isn't a saving. It's a gamble with your business and your home on the line.

Latest Posts from our Information Centre

What our customers say

The best! Amanda and Andy were a wonderful source of professional advice from start to finish regarding the sale of my property. Super responsive and proactively managed every step of the process, which was so important as this was my first property sale. My estate agent also commented on how efficiently the contract for sale was provided, along with Amanda and Andy's responsiven...

KB

Google

5 months ago

Alan was amazing! He guided us through buying our first property with such care and expertise. He knew exactly what requests and changes to make in the contracts to best protect and benefit us. We couldn’t recommend him highly enough!

Keeley May

Google

5 months ago

I had an excellent experience with Alan and Pamela during my recent property purchase. They were always available to answer questions, very clear in their communication, and incredibly helpful throughout the entire process. Their professionalism and attention to detail made everything smooth and stress-free. I’d highly recommend them to anyone looking for reliable and friendly so...

Manny Paulo

Google

5 months ago

My recent down-sizing involves the selling of a property and the buying of a new one at the same time. The whole process was a smooth and pleasant one, thanks to the help of Thornton + King Law Services. In particular I wish to thank Amanda Chik, my Solicitor for her detailed explanations of the contracts, and Andy Habib, the Conveyancing Manager, for his prompt and professional ...

Chiu Keung Ng

Google

6 months ago

Vanessa and Andy are both highly experienced, professional and extremely helpful. They made the process of selling my property seamless. I have no hesitation recommending or using them again in the future.

Brooke Tesoriero

Google

7 months ago

I wanted to express my sincere gratitude for all the hard work, time, and expertise that Amanda and her team put into our property settlement. Their attention to detail, clear communication, and persistence made what could have been a stressful process so much smoother and less daunting for us. We truly appreciate the extra effort you went to on our behalf — it didn’t go unnotic...

Lena Wang

Google

8 months ago

Vanessa and Andy made the process of buying my first home extremely easy and simple to understand. They were always available to answer any questions I had and to help me troubleshoot any problems I had. Can highly recommend them whether it is your first home or you’ve done it all before.

Niall Oates

Google

8 months ago

I cannot thank Sarah Newman, and Andy, at Thornton and King enough for their incredible support over the past six months. The settlement of my property was long, drawn-out, and at times quite tedious—but throughout the entire process, they were consistently professional, prompt, and reassuring. Sarah and Andy were always available to answer my questions, explain things clearly, a...

Shelley Robertson

Google

9 months ago

Contact Thornton & King Lawyers

Do you have a question about our services? Contact us today, and a member of our team will get back to you soon.