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ARTICLE · 07 JULY 2012

Landlord's Consent to Assignment of Lease: necessary and may be withheld

Makinson d'Apice Lawyers
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Will a transfer of lease between joint tenant lessees require the consent of the landlord?

AustraliaReal Estate and Construction
Chris Drayton
Chris Drayton

Summary – Lessors and lessees need to have a clear understanding of their rights and obligations under the lease when it comes to a proposed assignment by a lessee of its interest in the lease. If the lease is subject to the provisions of the Retail Leases Act 1994 (NSW) ("Act"), the rights and obligations stated in the lease are subject to the provisions of the Act.

The Supreme Court of NSW recently considered whether a transfer of lease between joint tenant lessees required the consent of the landlord.

The same case also considered whether the consent to transfer was reasonably withheld. The relevant lease was a retail lease which was caught by the Act.

Was consent required?

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