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Q: COMMERCIAL LEASE LAW ( Answered,   0 Comments )
Question  
Subject: COMMERCIAL LEASE LAW
Category: Business and Money > Small Businesses
Asked by: puddles28-ga
List Price: $50.00
Posted: 25 Dec 2002 22:59 PST
Expires: 24 Jan 2003 22:59 PST
Question ID: 133417
My company signed a five year lease on a Cafe/Restaurant/Conference
Centre, with annual options, last February. In addition, we have a
management contract which is `joined at the hip` with this lease.We
have exercised our option to renew the lease & management contract
w.e.f. 01/02/03. Sadly our Landlord is now in receivership and the
whole site is on the market to the highest bidder.Our business is
barely viable without the management fees being paid.
My questions are:
1. Am I correct in presuming that if the new owners DO NOT  wish to go
forward with our company, they will have to negotiate with us a buy
out of our remaining four years of lease/managment contract? or can
they simply bully us into walking out, with no compensation?

Request for Question Clarification by expertlaw-ga on 26 Dec 2002 00:58 PST
Dear puddles28,

In order to get an accurate answer, it will help if you provide the
following information: The location (state/province) where the
premises are located, and the nature of the receivership. (Is the
landlord in the course of bankruptcy proceedings, with a receiver
appointed through the bankruptcy court or trustee?)

Also, did you have a second question?

Clarification of Question by puddles28-ga on 26 Dec 2002 18:09 PST
Further clarification.

(a) The premises are in Western Australia.

(b) The Landlord is in Administrative Receivership; the receiver is
`confident` that bankruptcy will be avoided.
Answer  
Subject: Re: COMMERCIAL LEASE LAW
Answered By: leader-ga on 27 Dec 2002 00:00 PST
 
Hello:

The terms and conditions pertaining to your case are covered by the
RESIDENTIAL TENANCIES ACT 1987 of Western Australia. A comprehensive
case study can be found at
http://www.austlii.edu.au/au/legis/wa/consol_act/rta1987207

According to the legislation, a tenant who is in a fixed period
agreement cannot be evacuated until his/her lease is over (SECTION 72
& 63). The only way the landlord can evict you is if the lease is
periodic (Section 63). Even then he has to give a 30 day prior
notification that he has entered into a contract for sale of the
premises to which the agreement relates and under that contract he is
required to give vacant possession of the premises OR 60 day prior
notice without any reason.

You can also levy heavy penalties to the landlord if he is in breach
of the contract.

The answer to your question is YES you have every right to occupy the
property unless your term ends. Furthermore, you are entitled to get
compensation by mutual consent if the landlord wants to end the
agreement before time. The landlord cannot just BULLY you out of the
property.

For further information please see a copy of TENANCIES ACT 1987 of
Western Australia at
http://www.austlii.edu.au/au/legis/wa/consol_act/rta1987207

Other useful information can be found at the Western Australia Tenants
Advice Service Inc. at http://www.taswa.org. Please read Tenants Right
Manual and FAQ sections.

Another very useful resource for the Australian Public is
http://www.findlawaustralia.com. You may want to access
http://www.findlawaustralia.com.au/housing/Aspects_of_the_law_of_leases.htm

Useful Terms

'Australian Commercial Lease law'
'Australian Law'
'Tenants Rights in Australia'

Hope you will find the information useful. Please clarify if you need
further information. I will be obliged to answer. Thank You and Good
Luck.

Sincerely,
leader-ga
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