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22 February 2018 |
How to protect your interests when concluding and terminating a lease agreement?On 20 February 2018, the VEGAS LEX law firm held a conference on the topic of "Lease relations: termination of agreement vs change of its terms and conditions" for representatives of leading Russian and international companies. Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice of VEGAS LEX, opened the event and outlined the main trends and problems of the commercial and office property rental market. Elena Shevchuk and Natalia Abroskina, the experts from GVA Sawyer, presented the market analysis including the current indices of the retail and office property market, and demonstrated advantages and risks of a lessee and of a lessor related to alteration and termination of lease agreements based on certain case studies. Igor Chumachenko, in his turn, spoke about the key aspects to be focused on when drawing up and concluding a lease agreement. The speaker also dwelt upon a general property market situation related to termination and alteration of lease agreements , and highlighted the grounds for termination/alteration of a lease agreement, the matters of commencement of, and procedures for, alteration/termination of the agreement. Besides, he spoke of matters that should be focused on above all when agreeing upon, concluding and altering a lease agreement, mentioned trends in statutory regulation and judicial practice concerning lease relations, new rules of registration of lease agreements and the most commonly used means of securing obligations under a lease agreement. The speaker paid special attention to such concept as "permanent improvements", specifically, to the agreement between the parties on making improvements and to compensation of the value of inseparable improvements. He also addressed issues of changing provisions(conditions) for rent payment and proposed a number of recommendations for mitigation of risks. Yuriy Ivanov, VEGAS LEX Manager of Tax practice projects, addressed certain tax issues under lease agreements. In particular, he spoke of( or talked about) dispute settlement practice by issuing and handing over invoices, and of relevant risks mitigation practice, providing examples of mitigating civil law risks arisen from ambiguity of some provisions of tax legislation. Yuriy further highlighted the latest approaches of the Russian Ministry of Finance and supervisory agencies to accrual of depreciation and recognition of certain expenses related to lease, construction and repairs. *** For more detailed information on VEGAS LEX’s activity in Real Estate, Land and Construction, please click here. For information on VEGAS LEX’s services in tax law, please click here.
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