2019 has started with a couple of very significant cases in the
retail leasing division of NCAT (NSW Civil and Administrative
Tribunal) – both of which have gone the landlord's way
and delivered some unfortunate news for tenants in New South
Wales.
What is a genuine demolition?
Firstly, in relation to a demolition clause, there have been a
series of decisions about a tenancy at Burwood Plaza. The
tenant had been in occupation for 27 years. It was holding
under a 'licence agreement' which had a clause allowing the
landlord to give one month's notice to terminate if the
landlord wanted to demolish or redevelop. The landlord attempted to
do this and the tenant commenced proceedings under which it was
settled between the parties that the licence was a 'retail
lease' for the minimum term of five years. Two weeks
later the landlord issued a new demolition notice with 6
months' notice, as required by section 35 of the Retail Leases
Act (NSW).i
