WHILE REAL ESTATE AGENTS (both commercial and residential) must act fairly and honestly when advertising property, there is no doubt that underquoting is a significant problem -- predominantly in the current Melbourne and Sydney real estate market.
Although the New South Wales Government has recently proposed legislative reforms in order combat this problem, Victoria is yet to follow.
What is Underquoting?
THE FOREIGN INVESTMENT Review Board's (FIRB) reluctance to prosecute non-complying foreign investors, and the public criticism that this has received, has led to the introduction of stricter foreign investment laws by the Australian Government.
These changes will apply from 1 December 2015.
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QUIET ENJOYMENT IS a right held by all tenants to enjoy their property undisturbed.
Most lease agreements come with a specific clause granting tenants quiet enjoyment, however, courts have readily implied the right into leases not containing such a provision.
In assessing whether a breach has occurred, the court will look to the activities of the tenant and whether they have been rendered practicably impossible to use the premises. [Read more…]
THE VICTORIAN CIVIL and Administrative Tribunal has given an opinion at the behest of an application from the Victorian Small Business Commissioner.
President Garde determined that compliance costs under the Building Act 1993 (Vic) (Building Act) and repair and maintenance costs under the Retail Leases Act 2003 (Vic) (Retail Leases Act) are the responsibility of landlords and cannot be recovered from tenants. [Read more…]
ALL AUSTRALIAN STATES AND TERRITORIES have (somewhat varied) legislation dealing with land contamination. There are some important concepts applicable to every state and territory.
Many actions may be contrary to environmental protection laws, but sites classified as contaminated have to meet specific criteria.
This means that mere pollution does not necessarily equate to land contamination. [Read more…]
LANDLORDS WHO PROVIDE lease incentives to tenants (including fitout contributions, rent free periods and rent abatement periods) often attempt to secure themselves by requiring tenants to repay the incentives.
They usually request this in the event the lease is terminated due to the tenant’s default. [Read more…]
IN 2008, THE AUSTRALIAN COUNCIL OF AUSTRALIAN GOVERNMENTS (COAG) prioritised the implementation of a national electronic Conveyancing (e-Conveyancing) system. The system will render all property transfers paperless and introduce a uniform national scheme.
Property Exchange Australia Ltd (PEXA) was created in 2010 to provide online infrastructure. PEXA owns the rights to all previous e-Conveyancing software and will create a single point of access across all jurisdictions. [Read more…]
YOUR TENANT’S OBLIGATION to pay rent, care for the premises and abide by the provisions of the lease is usually secured by your right (as the landlord) to terminate the lease and recover possession.
In reality, this does little to remedy the financial loss suffered by a landlord, as a result of a breach by the tenant. [Read more…]
YOU SHOULD BE CAUTIOUS when entering into negotiations with foreign purchasers for the sale of property, due to the restrictions imposed by the Foreign Investment Review Board (“FIRB”).
Vendors should ensure that the contract of sale protects them when approval is required by the FIRB. Because, if the purchaser fails to gain approval, the FIRB can reverse the transaction. [Read more…]
IN PART1, we considered assignment in the context of where the lease prohibits assignment absolutely or where the tenant cannot assign without the landlord’s consent (to be withheld in its absolute discretion).
This article considers assignment when the landlord cannot unreasonably withhold its consent. [Read more…]
AS A COMMERCIAL PROPERTY landlord you have certain rights.
However, your ability to refuse consent to a lease assignment will depend on several factors.
