New emergency legislation, recently passed in response to the current public health crisis caused by the coronavirus COVID-19, has the potential to have a considerable impact on retail landlords and tenants.
The new Act amends the Retail Leases Act 1994 NSW introducing a new Part 11 allowing for the power to make regulations which, in particular circumstances:
- prohibits the landlord from recovering possession of premises or land from the tenant;
- prevents termination of a lease by the landlord;
- regulates or prevents the exercise or enforcement of another right of the landlord under the lease or an agreement relating to the premises.
Regulations could include prohibiting a landlord from recovering rent, issuing termination notices following a default, or enforcing repair and maintenance obligations. Any regulations introduced will last for six months from commencement, though could be terminated earlier if circumstances warrant it.
The Act itself does not change the landlord’s obligations under the Retail Leases Act or the agreement with the tenant, but this is open to change.
In the current difficult and rapidly evolving times, landlords need to keep on top of any amendments affecting their relationship with their tenants and seek legal advice where necessary.
Contact our Commercial Property Lawyers, Sydney NSW
If you have concerns about your rights as a retail, or indeed commercial, landlord, Szabo & Associates Solicitors, are here to help you through this demanding, but temporary, difficult period. Please contact us on {{CONTACT_NUMBER}} or fill in the online contact form.