Evicting a commercial lease tenant: what constitutes a reasonable time to remedy a breach after service of a notice to do so by the landlord?

Most lease agreements allow landlords to give notice to terminate a lease for a breach of its terms. A tenant must remedy a breach within a reasonable period of time after service of the notice. What constitutes a reasonable period of time to remedy the breach will, however, depend on the circumstances.

 The case of Drama Unit Pty Ltd v Ferndale Holdings Pty Ltd (Administrator Appointed) & Anor (2019) NSWCA 312 reinforced the position that there is no requirement to specify in the notice to remedy what a reasonable time might be. Allowing a landlord to decide on the matter would defeat the importance of ensuring that a tenant is always given a reasonable time to respond in all circumstances. This may depend on, for example, the purpose for which the notice was given, what needed to be done to avoid forfeiture of the lease and whether the notice was correctly served.

If a landlord terminates a lease based on an invalid notice to remedy a breach, their tenant may be entitled to compensation for the damage caused to their business.

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Szabo & Associates Solicitors have a property team with a wide breadth of expense advising landlords and tenants on all aspects of property matters, including disputes. Please contact us on 02 9281 5088 or complete the online contact form.