Construction Obligations A lessor`s construction obligations are the main topic of discussion in a pre-lease agreement. As a general rule, a lessor will accept the obligation to complete or procure the building «in a good and efficient manner» or in a «correct and practical manner» in accordance with construction practice and with good quality and appropriate materials. An owner will be very concerned to ensure that his development obligations are reflected in the construction contract that a lessor will have with his contractor. While landlords may be prepared to assume primary responsibility for a tenant`s construction obligations, they must ensure that their obligations are generally covered. A lessor who has obtained a complete set of guarantees for a tenant and who has ensured that the building is virtually completed, will endeavour to obtain his exemption from any construction obligation under a pre-lease agreement. In the absence of a concrete release, a landlord remains potentially responsible for its tenant for a period of 12 years. Owners are rightly anxious to avoid this residual liability and an unblocking clause is generally vehemently negotiated in a pre-lease agreement. For some occupants, the buoyous real estate market of previous years has virtually denied the need to proactively manage surplus assets as property; Disposals and subleases were easy to insure, so the costs and debts associated with them were limited. However, as the effects of the credit crunch continue to cause turbulence, an empty and non-operational rental property, above the requirements and in which there is no sublease agreement, is a major problem. If the proposed new premises need to be rebuilt (tailored or not) or if the lessor and tenant must carry out work before occupancy in the premises before occupancy can take place, the processes under the pre-lease agreement can be very complex. As a salary, because the contractor can save later on the marketing of the property, customers often receive a lower rent in advance. Payment terms can be agreed well in advance, allowing more time to plan all other aspects of offshoring. However, it is not uncommon for this type of contract to have a minimum lease of 20 years, which is why, in the long run, it fits better into long-term plans than runaway start-ups.