Tenant representation is a specialized legal service that exclusively protects the interests of the tenant (not the landlord) in commercial real estate transactions. In the Georgian market, landlords or real estate agents (who typically receive commissions from the landlord) often offer potential tenants one-sided agreements. In such documents, risks are entirely shifted to the tenant. A tenant representative lawyer acts as your advocate to balance the power dynamic, secure better commercial terms, and ensure legal safety throughout the lease term.
What Does Tenant Representation Service Cover?
This service goes beyond simple document preparation and includes strategic consultation:
- Market Analysis and Site Selection: Assisting in selecting properties that are legally "clean" and suitable for the business.
- Negotiations: Negotiating commercial and legal terms with the landlord on your behalf. This includes rent price, fixed exchange rates, rent-free periods, etc.
- Identifying Legal Risks: Discovering clauses "hidden" in the contract, such as hidden fees, restrictions on activities, or disproportionate penalties.
- Technical and Legal Audit: Checking the building's status, zoning, and permits to ensure your activity is permissible in the space.
- Exit Strategy Development: Inserting flexible conditions for early lease termination, which is critical in a changing business environment.
Common Scenarios and Real-World Examples
The need for a tenant representative is clear in the following situations:
- Foreign Investor: An international company wants to open an office in Tbilisi but is unfamiliar with local legislation and market norms. The representative ensures lease terms comply with international standards.
- Incorrect Zoning: A client rented a space for a restaurant, but later it turned out the building is in a residential zone where noisy activities are prohibited. A representative's involvement would have identified this risk beforehand.
- "As-is" Condition: The landlord hands over the space in a shell condition and demands the tenant pay for full renovation. The lawyer negotiates a "Fit-out contribution" from the landlord.
- Deposit Return: Upon lease termination, the landlord refuses to return the security deposit without cause. The lawyer protects the tenant's rights and recovers the funds.
Georgian Legislation and Regulations
Tenant representation is based on the Law of Georgia on Advocates, which establishes the priority of client interests and confidentiality. The lease relationships themselves are regulated by the Civil Code of Georgia. Also important are the Law on Entrepreneurs (regarding corporate authority) and the Code on Spatial Planning, Architectural and Construction Activities (regarding the functional purpose of the building). The representative ensures that the transaction fully complies with these regulations.
Service Process
The process begins with a consultation to clarify the tenant's requirements (budget, location, term). Then, the lawyer legally filters potential options. Active negotiation with the landlord begins on the selected property. The lawyer drafts the contract or edits the landlord's draft ("Redlining"). Finally, the representative attends the signing and ensures document registration and key handover.
Why Choose Legal.ge?
Legal.ge is the only platform that gives you access to independent lawyers who do not have conflicts of interest with landlords. Unlike real estate agencies that often serve both parties, specialists on Legal.ge protect only your interests. They will help you get the best terms and save you money in the long run. Hire your personal representative on Legal.ge and have peace of mind.
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