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ARTICLE · 07 FEBRUARY 2018

Leases: fair wear and tear

Carroll & O'Dea
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A recent case demonstrates that care is required when assembling or reviewing repair and maintenance clauses. .

AustraliaReal Estate and Construction
Matthew Rafferty
Matthew Rafferty
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A recent Victorian Supreme Court decision looked at the repair and maintenance obligations in a Lease of a petrol station. A number of things went against the Landlord in this case, including the exception for fair wear and tear and the requirement that the lessee make repairs as necessary. The main problem for the landlord was that the current lease was a renewal, and the damage complained of occurred prior to the renewal. The repair obligation related to the condition of equipment at the date of commencement of the lease. The case shows that common expressions used in repair and maintenance clauses can have meanings that were not anticipated. Also, it serves as a lesson to take great care when adopting clauses in a renewal of lease.

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