Commercial Lease Disputes

A commercial lease dispute lawyer is a lawyer who is qualified and experienced in dealing with commercial and retail shop lease disputes.

There are a number of commercial lease disputes which could arise during the tenancy, and it is important to deal with these disputes as soon as possible.

If you do not attempt to resolve these disputes, then there can be serious and expensive consequences for both tenants and landlords.

Typically, the most common breach is for non-payment of rent. However, any breach of a covenant, obligation, condition, or agreement in the lease allows for a right of re-entry or forfeiture.

It is important that you seek qualified legal advice if have a commercial lease dispute.

Types of Commercial Lease Disputes

There are a number of ways that a dispute can arise with commercial leases.

1. Disputes arising from assignment of the commercial lease
2. Commercial lease disputes regarding unauthorised works to premises
3. Damage to premises by either the tenant or the landlord (or mother nature)
4. Commercial lease disputes because of failure to notify within the correct time to accept an option
5. Commercial lease disputes relating to the landlord or tenant failing to maintain the premises
6. Commercial lease disputes in relation to failure to pay rent, paying the incorrect amount or rent, and/or failure to pay the outgoings.
7. Commercial lease disputes in relation to the insurance kept by the tenant and/or landlord
8. Interruption to access to the premises.
9. Commercial lease disputes relating to the landlord failing to provide quiet enjoyment of the premises
10. Commercial lease disputes because of the tenant’s failure to make good the premises
11. The landlord or the tenant refusing consent to an assignment causing a dispute
12. Commercial lease disputes relating to subletting tenancy without permission
13. Tenant being locked out of premises without the adequate notice to remedy the breach
14. The tenant using the premises for a different purpose other than specified in the lease
15. Commercial lease disputes in relation to withholding security deposit (bond)

A dispute can arise in a commercial lease because of all of these things, and a lot more.

If a dispute arises, then the first step to resolve this dispute is to issue a notice to remedy the breach pursuant to section 124 of the Property Law Act 1974 (QLD) (“the PLA”).

What is a Notice to Remedy Breach?

Section 124 of the PLA relates to the restriction on and relief against forfeiture of a commercial lease.

Section 124(1) of the PLA states:

(1) A right of re-entry or forfeiture under any proviso or stipulation in a lease, for a breach of any covenant, obligation, condition, or agreement (express or implied) in the lease, shall not be enforceable by action or otherwise unless and until the lessor serves on the lessee a notice—

(a) specifying the particular breach complained of; and

(b) if the breach is capable of remedy, requiring the lessee to remedy the breach; and

(c) in case the lessor claims compensation in money for the breach, requiring the lessee to pay the same;

and the lessee fails within a reasonable time after service of the notice to remedy the breach, if it is capable of remedy, and, where compensation in money is required, to pay reasonable compensation to the satisfaction of the lessor for the breach.

If you are a landlord, and the tenant has breached any covenant, obligation, condition, or agreement (express or implied) in the lease, then you must serve a notice under this section.

If you are a tenant, and the landlord has accused you of breaching any covenant, obligation, condition, or agreement (express or implied) in the lease, then they must serve a notice under this section before that can take any adverse action against you.

Requirements of a Notice to Remedy Breach

When giving a tenant a notice to remedy breach, the landlord will need to ensure that the following are complied with for the notice to be effective:

1. The notice to remedy breach must be in writing.
2. The notice to remedy breach must correctly identify the correct parties.
3. The notice to remedy breach must correctly identify the particulars of the breach.
4. The notice to remedy breach must outline how much rent is required (if applicable).
5. The notice to remedy breach must outline what the tenant has to do to remedy the breach.
6. The notice to remedy breach must contain the notes (note and additional note).
7. The notice to remedy breach must stipulate that the breach must be remedied within a reasonable time; and
8. The to remedy breach notice must be served on the lessee correctly.

The form must be correct. The form is a Property Law Act form 7 – https://www.courts.qld.gov.au/__data/assets/pdf_file/0004/88294/prop-f-7.pdf

Eviction of a Tenant because of Breach

If, within a reasonable time, the tenant does not remedy the breach of covenant, obligation, condition, or agreement, then the landlord may elect to terminate the lease (subject to the terms of the lease).

If this happens, or there is a disagreement in relation to the nature of the commercial lease dispute, then the tenant can make an application for relief against forfeiture.

Section 124(2) of the PLA states that the tenant can apply to the court for relief, including:

1. An order for costs, expenses, damages, compensation, penalty or otherwise.
2. An injunction to restrain any like breach in the future.

Commercial Lease Disputes in Queensland

Our litigation lawyers can provide advice and assistance with all commercial lease disputes in Queensland.

If you are a landlord and you need to breach a tenant, then you must ensure that it is done correctly, in the correct form, contains everything it needs to contain, and is served correctly.

Our lawyers can assist you with this.

If you are a tenant and you have been served with a Form 7 Notice to Remedy Breach of Covenant, then you must act quickly, because time is very much of the essence, and you do not want to be locked out of the premises.

Our lawyers can help you with this.