Before you sign a coworking agreement: a clause-by-clause checklist

Coworking agreements tend to be short, which makes them easy to sign without reading. But a handful of clauses decide how much you will really pay, how quickly you get your deposit back and how easily you can leave. Go through this checklist clause by clause before you sign. Where something is unclear, ask for it in writing. This is a practical guide, not legal advice; for large or unusual commitments, have a lawyer review the document.

Keep a notebook or a document open while you read, and note every clause you do not fully understand. Then send all your questions to the operator in a single email. Their written replies become part of your record, and how quickly and clearly they answer tells you a good deal about how they will treat you as a member.

1. Parties and the space

• Is the agreement in your company's correct legal name, with GSTIN if you have one?
• Does it describe exactly what you are getting: number of seats, desk type, cabin number, floor?
• Is the nature of the agreement stated (licence, service agreement)?

2. Term, lock-in and notice

These three are often confused.

• Term is how long the agreement runs.
• Lock-in is the minimum period you must pay for, even if you leave early.
• Notice period is how far in advance you must tell the operator you are leaving.

Check what happens if you leave during the lock-in: do you pay the remaining months, forfeit the deposit or both? Check whether the notice period can run during the lock-in or only after it. Our article on deposits and lock-ins discusses what is fair.

3. Fees, GST and price revision

• Is the fee quoted inclusive or exclusive of GST?
• When is it due, and what is the late fee?
• Is there an annual increase? By how much, and when does it apply?
• Will you receive proper GST tax invoices in your business name? See GST on coworking rent for why this matters.

4. Security deposit

• How many months of fees is the deposit?
• Is it interest-free (usually yes)?
• Within how many days of exit is it refunded?
• What deductions are allowed: unpaid dues, damage, lost access cards? Is "damage" defined?

5. What is included and what is extra

Write down every service you were told about on the tour and check it appears in the agreement or its annexure.

6. Access hours and house rules

• What are the access hours, and do they include weekends and public holidays?
• Are guests allowed, and is there a limit or fee?
• Are house rules attached, and can the operator change them unilaterally?

7. Relocation and changes

Some agreements allow the operator to move you to a different desk, cabin or even building. Check whether you must agree, whether the alternative must be comparable, and whether you can exit without penalty if you do not accept it.

8. Liability, insurance and data

• Who is responsible if your equipment is stolen or damaged?
• Is the operator liable for internet or power outages, and is there any credit?
• How is CCTV footage and visitor data stored and who can access it?

9. Termination by the operator

Look for the reasons the operator can end the agreement: non-payment, breach of rules, or simply with notice. If the operator can terminate at short notice for convenience, ask for a matching right for yourself.

10. Exit and handover

• What must you return: access cards, keys, furniture?
• If you used the address for GST or company registration, how long will mail be forwarded after you leave?
• Is there a final inspection, and can you attend it?

11. Disputes and governing law

Check which city's courts have jurisdiction and whether disputes go to arbitration first. If the operator is headquartered in another state, the agreement may name courts there, which could make any dispute costly for you. Also check whether the agreement can be assigned to another company, for example if the operator sells the centre, and what that would mean for your terms.

12. Signatures and annexures

Make sure every page is initialled, the annexures (floor plan, list of services, house rules, price schedule) are attached, and both sides have signed copies. If the agreement needs stamping under your state's rules, ask who pays for it. An unsigned price schedule or a missing annexure is a common source of disagreement later.

Before you sign

1. Visit at least twice, once at your normal working time. Our list of questions to ask on a tour helps.
2. Get every promise from the tour into the agreement or an email.
3. Compare terms across two or three spaces. On Coworks you can shortlist up to four coworking spaces or private offices and view them together on compare.
4. Keep a signed copy and the GST invoice for the deposit and first month.