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ByrneWallace I Why Ireland? A guide to doing business in Ireland I 15On execution of the Contract for Salea 10% deposit is paid with the balancepayable on the closing date. Thedeposit is usually held as stakeholder bythe lawyer acting for the vendor and it isusually refundable in nature where thetransaction does not proceed for reasonsother than the default, neglect or delayof the purchaser.OCCUPATIONAL LEASINGBusinesses in all sectors occupylands and buildings in pursuanceof occupational leases with a largenumber of retail, office and industrialdevelopments constructed in the pastten years. It is unusual for buildings tobe occupied under licence save for verylimited purposes (e.g. seasonal trade) orin retail outlet parks.“ Landlords and tenants areincreasingly focused oncommitments towards energyefficiency, carbon reduction, use ofrenewable energy, wastereduction and water usereduction.”TermOccupational leases terms are typicallybetween five and twenty five years.Recent statutory changes (both VATand Landlord and Tenant rights) andincreased tenant bargaining power in adepressed market has created greaterflexibility for prospective occupiers.Ireland has not yet adopted theEuropean model of short lease terms.Irish business leases often give bothlandlords and tenants security of tenureand an opportunity for both to recovertheir respective capital investments.Increasingly, tenants are negotiating“break clauses” giving them the optionto terminate their leases after the fifth,tenth or fifteenth years, depending onthe duration of the initial term.ObligationsThe typical Irish occupational leaseis what is known as an “FRI” or fullrepairing and insuring lease with the