U6. LH Code for Leasing Business Premises

Question 1

What is the code for leasing business premises?

Answer 1

The primary aim of the code was to improve the lease negotiation process by making it fairer and more constructive for commercial tenants.

The code contains mandatory principles of professional standards and best practices

Question 2

What are the mandatory principles of the code of leasing business premises?

Answer 2

1. Negation’s must be approached in a constructive and collaborative manner
2. Heads of terms should be in writing and be suitably comprehensive
3. RICS members should inform non-members of the existence of the code during negotiation , advising them to take independent advice.

Question 3

What is the effect of breaching the code of leasing business premises?

Answer 3

RICS members may be subject to:

1. An action in negligence
2. Disciplinary action by the professional body