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ARTICLE · 01 FEBRUARY 2014

Ostensible authority in the leasing context

Holding Redlich
Holding Redlich
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Holding Redlich

Holding Redlich

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The property manager acted with ostensible authority to allow the landlord to enter the premises to undertake major works.

AustraliaReal Estate and Construction
Roxanne Burd (Formerly With Holding Redlich)
Roxanne Burd (Formerly With Holding Redlich)
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In a recent 2:1 decision,1 the Western Australian Court of Appeal has upheld a claim by a landlord that the tenant's property manager acted with ostensible authority to allow the landlord to enter into the leased premises and undertake major works.

Background

We summarise the relevant facts below.

  • Telstra had leased the ground floor and first to fourth floors of a building in the Perth CBD. The relevant lease term was due to expire on 21 March 2010.
  • During the lease term Telstra made a decision to vacate the premises and relocate its staff to another of its leased premises. By the end of May 2009, all of Telstra's staff had vacated the premises. There was approximately 10 months remaining under the lease.

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