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Agreement between landlord and tenant for a shop: what a commercial tenancy needs

A shop tenancy is not a longer residential tenancy. The money at stake is a business, the term is usually longer, and the clauses that matter — permitted use, rent review, who owns the fittings, what has to be put back at the end — are the ones residential templates leave out. Here is what a Nigerian shop or office agreement must cover, and a generator that produces the document in about two minutes.

How a shop tenancy differs from a residential one

Clauses your shop agreement must not leave out

Lagos: extra protection for business premises

Section 9 of the Lagos Tenancy Law 2011 provides that, unless the agreement says otherwise, a business-premises agreement is taken to require that the landlord shall not inhibit the tenant's access to the premises in any substantial manner, and shall not take any action that would substantially alter or inhibit the flow of customers, clients or other persons using the business premises. For a shop, that is the clause that stops a landlord walling off your frontage or diverting the entrance to suit another tenant.

Fixtures and improvements — who owns them at the end?

Under the Lagos law, a tenant who improves the premises with the landlord's prior written consent may claim compensation for those improvements on quitting. That is a narrow right and it depends on the consent being in writing, so: get consent in writing before you spend, list the improvement and its cost in the agreement, and record what happens to it at the end of the term.

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Questions people ask

Can I use a residential tenancy agreement for my shop?

You can, but you should not. It will be missing permitted use, rent review, fixtures, reinstatement and signage — the exact clauses commercial disputes turn on. Add them, or use a generator that includes them.

Can my landlord block the entrance to my shop?

In Lagos, s.9 protects the tenant against the landlord inhibiting access in a substantial manner, or substantially altering or inhibiting the flow of customers. If your agreement is silent, the law implies that protection; if your agreement says otherwise, the agreement may override it — which is why the clause must be checked before you sign.

Do I get compensated for the fittings I installed?

If you improved the premises with the landlord's prior written consent, Lagos law allows a claim for compensation on quitting. Without written consent you are relying on the agreement alone — so get the consent in writing before you spend.

How much advance rent can a landlord ask for on a shop?

The Lagos advance-rent cap (one year for a yearly tenant, six months for a monthly tenant) is framed around tenancies generally; commercial deals are often negotiated differently and longer terms change the arithmetic. Record exactly what you agree, in the agreement, before money moves.

What notice ends a shop tenancy?

The notice period in your agreement governs. Where the agreement is silent, the statutory minimums apply — six months for a yearly tenancy, for example — followed by the 7 days' notice of intention to recover possession if the tenant does not leave.