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About Product
The Operating Lease is an essential tool for both lessors and lessees looking to formalise an operating lease agreement. It covers all critical aspects of the lease, including detailed definitions, lease terms, payment schedules, maintenance obligations, and guidelines for the lawful use of the property. The template's adaptability makes it ideal for various leasing scenarios.
► $229.00 (inc GST) - OR provided under your membership
► The master document has been signed off by LY Legal and is congruent with Australian law.
General Information
It is standard practice by banks and other lending institutions to require a mortgage deed between the borrower and lender, when entering into a property loan agreement.
For those transactions between non-bank parties such as a SMSF lending to a third party, it is vital that standard lending practice be applied, and a mortgage deed be put in place and more importantly registered.
Benefits
- No Capital Outlay: Free up your capital for other business needs.
- Off-Balance Sheet Financing: Operating leases are generally treated as rental expenses, not as debt, improving your financial ratios.
- Tax Efficiency: Lease payments can often be deducted as a business expense, reducing your taxable income (subject to your business circumstances and tax laws).
- Maintenance Inclusions: includes maintenance, reducing unexpected costs.
Frequently Asked Legal Questions
An operating lease is a contractual agreement where the lessor allows the lessee to use a property for a specified period in exchange for regular payments.
Yes, it can be customised for various property types, including commercial, industrial, and residential.
The template is designed to accommodate negotiations and alterations to suit specific leasing arrangements.
The agreement includes a clause specifying the governing law and jurisdiction, ensuring any disputes are resolved under the laws of the particular state of Australia.
Yes, it is crafted to be fully compliant with the latest Australian laws and regulations regarding property leasing.
How long does this document take to assemble?
Depending on the complexity of the data, this document should take approximately 5-10 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts
Is this document a legal document?
All master documents have been signed off by LY Legal lawyers. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”
However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by LY Legal.
The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:
“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”
Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.
Is the document easy to read?
All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.
What lawyers sign off on the LYD documents?
All LYD documents are prepared and signed off by LY Legal from Melbourne, Sydney and Brisbane.
Are the LYD documents reviewed regularly?
All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is included on this website.
Can I get a sample of this document?
Yes, please email support@lyd.com.au to request a sample document for you to review.