Important Information for Landlords and Tenants of premises where the lease is under the Retail Leases Act 1994

Published 01 Jul 2014
Louis Andreatta

Important Information for Landlords and Tenants of premises where the lease is under the Retail Leases Act 1994

• Landlords and tenants should particularly note Sections 44 and 44A of the Retail Leases Act 1994.

• Section 44

Not more than twelve (12) months before and not less than six (6) months before the expiry of a Lease, a Landlord must in writing;

(a) Offer the Tenant a renewal or extension of the Lease on terms specified in the Notice;

Or,

(b) Inform the Tenant that the Landlord does not propose to offer the tenant a renewal or extension of the Lease.

If the Landlord fails to give such notice to the tenant, the term of the Lease is extended until the end of six (6) months after the Landlord gives the notice to the Tenant, but only if the Tenant requests that extension by Notice in writing to the Landlord given before the Lease would have expired.

During any extension of the Lease, the Tenant may terminate the Lease by giving not less than one (1) months notice of termination in writing to the Landlord.

The notice is not required to be given to a Tenant, where a Lease contains an Option to Renew.

This requirement only relates to Leases which are under the Retail Leases Act 1994.

• Section 44A

Section 44A of the Retail Leases Act 1994 prohibits a Landlord from publicly advertising the availability of retail premises during the term of a Lease, unless:

(1) The Landlord has offer the Tenant a renewal or extension of the Lease, the offer has not been accepted and the Landlord informs the Tenant that negotiations are completed without result;

(2) The Landlord informs the Tenant that the Landlord does not propose to offer the tenant a renewal or extension of the Lease (in which case the notice referred to above must be given to the Tenant) and there are no arrangements to allow the Tenant to remain in possession of the premises; or

(3) The Tenant informs the Landlord that the Tenant does not wish to enter into negotiations for the renewal of the Lease or that the Tenant wishes to withdraw from negotiations; or

(4) The Tenant has vacated or agrees to vacate the premises; or

(5) The Tenant consents to the Landlord advertising the availability of the premises during the term of the Lease.

Failure by the Landlord to comply with Section 44A may result in a penalty of $5,500.00 dollars.