This clause says you (the tenant or buyer) must follow all laws and regulations that apply to your use of the property, including health and safety rules, environmental laws, and building codes. The landlord is saying: "I'm not responsible if you break the law." This matters because if you operate illegally—for example, by not installing required fire exits—you face criminal penalties, fines, and closure, and the landlord can evict you. In the UK, the Health and Safety at Work Act and Building Regulations apply; in the US, OSHA and local building codes do. This is a high-risk clause because statutory breaches can shut down your business.
Don't try to remove this clause—it's non-negotiable because you're legally required to comply anyway. Instead, add language that the landlord must tell you about any known statutory breaches in the property before you take it over, and that they'll fix any pre-existing violations. Ask for a detailed "compliance schedule" listing all current laws that apply to the property and your intended use, so you know exactly what you're responsible for.
Frequently Asked Questions
What does this clause mean in simple terms?
This clause says you (the tenant or buyer) must follow all laws and regulations that apply to your use of the property, including health and safety rules, environmental laws, and building codes.
Why should I care about this clause?
The landlord is saying: "I'm not responsible if you break the law." This matters because if you operate illegally—for example, by not installing required fire exits—you face criminal penalties, fines, and closure, and the landlord can evict you.
What are my options?
In the UK, the Health and Safety at Work Act and Building Regulations apply; in the US, OSHA and local building codes do.
How does this affect small businesses?
This is a high-risk clause because statutory breaches can shut down your business.