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ARTICLE · 26 DECEMBER 2014

Exercising an option to renew: do not be timed out

DibbsBarker
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This decision provided relief for the tenant but the Court's decision was isolated to the particular facts in question.

AustraliaReal Estate and Construction
Alissia Sbrizzi
Alissia Sbrizzi
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Focus: APF Properties Pty Ltd v Robinson Investment Capital Pty Ltd [2013] TASSC 59
Services: Property & projects
Industry Focus: Property

Leases provide tenants with a specified period to occupy leased premises, and quite often include an option to renew. For a tenant, an option to renew a lease for a further term is a significant and valuable right – a right worth preserving.

In order to enjoy the right, tenants must usually satisfy preconditions. One such standard precondition is that an option must be exercised on time and this is usually strictly enforced. This article discusses this precondition, and also a decision of the Supreme Court of Tasmania concerning a tenant who was late in exercising an option.

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