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ARTICLE · 19 NOVEMBER 2018

If the Act does not apply ….. it does not apply - a retail shop lease?

This case is a reminder to each party to understand which Act their lease falls under so as to properly resolve disputes.

AustraliaReal Estate and Construction

The Queensland Civil & Administrative Tribunal (QCAT) found a landlord and a tenant cannot just decide to "agree" that the Retail Shop Leases Act 1994 (Qld) (RSLA) applies to their lease in circumstances where the legislature has provided for the RSLA not to apply.

Background

Tivoli Retail Pty Ltd (Landlord) rented premises to Metcash Food & Grocery Pty Ltd (Tenant) by way of lease entered into on 15 June 2012 (Lease). In August 2016, discussion regarding market rent could not be agreed on nor could a specialist retail valuer to determine the rent and so a QCAT nominated a valuer who then determined the market rent. The Landlord did not agree with the valuer's determination and filed a Notice of Dispute seeking an order to set the rental determination aside. The Tenant however, applied to the Tribunal to strike out the Landlord's Notice of Dispute on the ground the QCAT did not have jurisdiction to determine the dispute because it is not a "retail tenancy dispute"

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