Most leases give rights to the landlord to seek the early termination of a lease, due to a breach of covenant (a “promise”) by the tenant. However, in most circumstances, before the landlord can exercise this right of early termination, the landlord is required to give a tenant a Notice to Remedy Breach (the “Notice”). Whilst this requirement may seem simple enough, our experience is that the validity of the Notice is a commonly disputed issue.
The specific terms and conditions of a lease vary from one to another (for example a Standard Form REIQ Commercial Tenancy Agreement is usually very different to a Retail Shop Lease pursuant to the Retail Shop Leases Act 1994 (Qld). A few examples of the contents required for a valid Notice, pursuant to the Property Law Act 1974 (Qld), are as follows (without limitation):
- The Notice must be in writing;
- The Notice must be served on the tenant, compliant with the specific requirements of legislation, or as otherwise agreed in the terms and conditions of the Lease;
- The Notice must specify “the particular breach complained of”;
- The Notice must, “if the breach is capable of remedy”, require “the lessee to remedy the breach”;
- Where money for the breach is claimed by the landlord, the Notice should require ‘the lessee to pay the same”; and
- The landlord must allow the tenant a ‘reasonable time’ to comply with any request in the Notice.
Failure to provide a compliant Notice can have serious consequences. As an example, a tenant may have a right to compensation for loss and damages, if an invalid Notice was relied upon by the landlord to “lock out” a tenant from the premises.
For more information regarding Notice to Remedy Breach
Please contact our Client Engagement Team or call us on (07) 3252 0011 to book an appointment with one of our specialist Commercial Lawyers today.