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Legislative Assembly for the ACT: 2001 Week 3 Hansard (6 March) . . Page.. 717 ..


Division 12.1A Renewal

106 Objects of div 12.1A

(1) The Legislative Assembly recognises that conflicts sometimes happen between a lessor's expectation that the lessor will be able to deal with the leased premises subject only to the terms of the lease and a tenant's expectations of reasonable security of tenure.

(2) The objects of this division are to achieve an appropriate balance between reasonable but conflicting expectations and to ensure fair dealing, as far as practicable, between lessor and tenant in relation to the renewal or extension of premises.

107 Lessor's intentions about renewal

(1) This section applies to all leases.

(2) The tenant may, in writing, ask the lessor to tell the tenant whether the lessor intends to renew the lease if-

(a) for a lease for longer than 1 year-the lease is due to end in not less than 6 months and not longer than 1 year; or

(b) in any other case-the lease is due to end in not less than 3 months and not longer than 6 months

(3) If the lessor receives a request under subsection (2) on a day (the request day ), the lessor must tell the tenant, in writing within 1 month after the request day, either that-

                1. the lessor proposes to renew the lease; or

(b) the lessor does not propose to renew the lease.

(4) If the lessor fails to notify the tenant under subsection (3), the lease is extended by a period equal to the period starting 1 month after the request day and ending when the lessor gives the tenant a notice that, apart from being late, complies with subsection (3).

107A Rules of conduct at end of lease term for shopping centre leases

(1) This section applies to a lease for premises in the retail area of a shopping centre if the lessor proposes to re-lease the premises and the tenant wants to renew or extend the lease.

(2) The lessor must allow the tenant to renew or extend the lease in preference to allowing other possible tenants to lease the premises.

(3) The lessor must assume that the tenant wants to renew or extend the lease unless the tenant has told the lessor, in writing within 12 months before the end of the lease, that the tenant does not want to renew or extend the lease.

(4) The lessor may offer to lease the premises to someone other than the tenant only if it would be substantially more advantageous to the lessor to lease the premises to the other person rather than renew or extend the term of the lease.

(5) However, the lessor is not obliged to prefer the tenant under this section if-

(a) the lessor reasonably wants to change the tenancy mix within the shopping centre; or

(b) the tenant has breached the lease substantially or persistently; or


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