Get Your Lease Default Notice Right or Give the Tenant a Free Kick!

02 May 2017

The Supreme Court of Queensland has recently found that a defect in a breach notice issued by a landlord to a tenant invalidated the landlord’s subsequent termination of the lease, even though the tenant was in significant arrears.

This serves as a timely reminder to both landlords and tenants to ensure that any formal notifications relating to a lease are prepared and given in accordance with the terms of the lease and the Property Law Act.  A few potential traps include:

  • How should any notices be delivered?  A significant proportion of existing leases do not permit giving notices by email and some older leases may require delivery by registered post.  Getting the method of delivery wrong can invalidate your notice.
  • If you are providing notice of a breach of lease, the notice should be in the form required by the Property Law Act and should notify the breaching party that they have a reasonable time to remedy the breach.
  • Get your timing right.  Leases will usually contain time limits for the giving of some notices, particularly in the relation to options and rent reviews.  Missing a time limit can restrict your rights. 
  • Exercising an option can be a minefield for both tenants and landlords.  It’s important for both parties to ensure they comply with any time requirements (options need to be exercised in advance, sometimes up to 12 months before the end of the lease term), give notice properly, consider the rent payable during any extended term and note the additional requirements for a retail shop lease.
  • Retail shop leases have a number of additional notice requirements – see our November 2016 update about recent amendments to the Retail Shop Leases Act 1994 (Qld)

http://www.shandtaylor.com.au/publications/changes-to-retail-shop-leases-act-commence-on-25-november-2016 

Here at Shand Taylor Lawyers, our property and dispute resolution teams are happy to help with all leasing matters.  Please contact us if you have any questions or require any assistance with your leasing requirements.

Property Team
John Lowes, Partner: (07) 3307 4567
Richard Waring, Partner: (07) 3307 7545
Gyöngyi Kruchió, Lawyer: (07) 3307 4514

Dispute Resolution Team
Rod O’Sullivan, Partner: (07) 3307 4568
Kimberley Forman, Senior Associate: (07) 3307 4523

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