Delivery of premises: Overview, definition, and example
What is delivery of premises?
Delivery of premises refers to the transfer of physical possession and control of a property (typically a rental or leased property) from the landlord or property owner to the tenant or lessee. This is a critical part of real estate transactions, especially in the context of lease agreements. The delivery of premises signifies that the property is ready for the tenant’s use, in accordance with the terms set out in the lease agreement. The condition of the premises, as well as the agreed-upon move-in date, are key aspects of this process.
In a lease or rental agreement, the landlord or property owner is required to ensure that the premises are in a habitable condition and suitable for the tenant’s intended use. Delivery of premises may include the handover of keys, providing access to necessary utilities, and confirming that any necessary repairs or preparations have been completed.
Why is delivery of premises important?
Delivery of premises is important because it marks the official beginning of the lease term and the tenant’s right to occupy and use the property. Ensuring that the premises are properly delivered sets the stage for a successful rental or leasing experience and helps avoid disputes related to the condition of the property, missed timelines, or non-compliance with lease terms. A smooth delivery process also ensures that tenants can begin using the property without delays, reducing inconvenience and legal risks.
Failure to deliver the premises on time or in the agreed-upon condition may lead to financial loss for both parties, with tenants possibly being entitled to compensation or rent adjustments if the premises are not ready for occupancy when promised.
Understanding delivery of premises through an example
Let’s say a commercial tenant has signed a lease for office space, and the landlord agrees to deliver the premises by a specific date. The lease specifies that the office space must be clean, painted, with necessary repairs completed, and all utilities (water, electricity, and HVAC) functioning properly.
On the move-in date, the landlord ensures that the office space is in the agreed-upon condition and hands over the keys and access codes. The tenant inspects the premises and finds everything in order, and they begin using the space immediately. This marks the successful delivery of premises.
In contrast, if the office space was not ready as agreed—perhaps the repairs were incomplete, or the utilities were not functioning—the tenant may not be able to use the space and may seek compensation or demand that the landlord fulfill their obligations under the lease.
An example of a delivery of premises clause
Here’s how a delivery of premises clause might appear in a lease agreement:
"The Landlord shall deliver the premises to the Tenant on or before [insert date], in good condition and in compliance with all applicable laws, and with all necessary repairs completed. The Landlord shall provide the Tenant with all keys, access codes, and any other necessary means of access to the premises. If the premises are not delivered in the agreed condition or by the specified date, the Tenant may be entitled to a rent abatement or other remedies as set forth in this Agreement."
Conclusion
Delivery of premises is an essential step in real estate transactions, particularly in lease agreements, as it formally marks the tenant's right to occupy the property. Ensuring that the premises are delivered in a timely and acceptable condition protects both the landlord and the tenant, helping to avoid disputes and ensuring the rental relationship begins smoothly. By clearly outlining the expectations and responsibilities related to the delivery of premises in the lease agreement, both parties can ensure a positive and compliant leasing experience.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.