The Property Law Act 1974 (Qld) prescribes when a Lessor (Landlord) can exercise their right of re-entry or forfeiture of a lease and how to provide notice of termination of a lease. This applies to all leases including both termination of commercial leases and retail shop leases.
If a Lessee (Tenant) breaches any covenant, obligation, essential term, condition or agreement under the lease, the Lessor can exercise their right of re-entry or forfeiture, however there are restrictions on when they can act.
The Lessor must give the Lessee notice in a particular form. The Lessor should issue a Form 7 Notice to Remedy Breach of Covenant, issued pursuant to Section 124 of the Property Law Act 1974 (Qld).
The notice must:
If the notice requirements are not complied with, the notice will not be valid and the Lessor cannot exercise their right.
After the Lessee has been served with the notice, if they fail to remedy the breach within a reasonable time (if it is capable of remedy) or fail to pay compensation to the Lessor then the Lessor can exercise their right of re-entry or forfeiture.
The two main methods of forfeiting a lease are:
If the Lessor is entitled to retake possession of the premises after the notice requirements have been complied with and the Lessee has failed to comply as required, this repossession commonly occurs after-hours by changing the locks so the Lessee cannot enter.
If provided for under the lease, the Lessor can serve a notice of termination on the Lessee to terminate the lease.
If you are a Landlord who wants to exercise your right of forfeiture or re-entry of a lease, get in touch with us to ensure you navigate the process lawfully and effectively, complying with the requirements under the lease and statutory law.
If you are a tenant and your Landlord has served a notice to remedy on you or is attempting to terminate the lease for a breach or re-enter the premises, call us for assistance to ensure your Landlord is acting lawfully and your right to remedy a breach in a reasonable time is upheld.
It is essential you have experienced solicitors when dealing with a commercial lease or retail shop lease or a dispute about one. If you would like to exercise your right of forfeiture or re-entry of a lease or if you have been served with a notice to remedy, our commercial law team will make sure your rights are protected.
Aitken Whyte Lawyers Brisbane are focused on results. Our solicitors can assist you with all commercial leasing matters. Call today to discuss your needs.