It always pays to nit-pick

Related tags Leasing Lease License

Yes, the editor is right: I am a nit-picker, and proud of it! It is, I hope, to the benefit of readers that my nerdish tendencies to leave no stone...

Yes, the editor is right: I am a nit-picker, and proud of it! It is, I hope, to the benefit of readers that my nerdish tendencies to leave no stone unturned often throw up important issues and potential problems. But it seems that sometimes I am beating my head against a brick wall.

Over the years, one of the most depressing aspects of working with the licensed trade is to see how many aspiring entrants to the business do so with their hearts rather than their heads or their eyes. In particular, they never read a contract properly, and they do precious little homework.

They are also reluctant to insist on things that are their right. I am reminded of this by a recent sorry tale from a licensee who ploughed many thousands of pounds into a refurbishment project on a leased property that he wanted to run as a nightclub, only to find out at the very last moment that the licence he had been told ran until 2am only lasted until the "normal" terminal of 11pm!

He took the verbal assurances of the leasing company (which has since gone bust) at face value and presumably never asked to see the relevant material. I do not know the full details, but from my perspective he may well have thrown his money away unless he can turn things round pretty quickly.

The moral is: never rely on verbal promises or assurances. Ask to see the key things in writing and refuse to sign any contract or lease until you have. I know this is very difficult when a high-pressure salesman is breathing down your neck and telling you he has three other people dying to take it off you. Take time to get things straight. Even more important: take professional legal advice as early as you can. Paying out fees that only run into hundreds is better than losing a hundred thousand in six months!

Related topics Professional Services & Utilities

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