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ARTICLE · 18 DECEMBER 2009

Real Estate: Release on assignment – what are the lessor’s obligations?

Barry Nilsson
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In 2006 the Retail Shop Leases Act (Act) was amended to provide that an assignor would be released from liability for any breach of the lease by an assignee after the assignment date (statutory release).

AustraliaReal Estate and Construction
Cameron Graham
Cameron Graham
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In 2006 the Retail Shop Leases Act (Act) was amended to provide that an assignor would be released from liability for any breach of the lease by an assignee after the assignment date (statutory release).

However, the assignor is only entitled to a statutory release if:

  • the lease was entered into on or after 3 April 2006; AND
  • the assignor gave the prospective assignee a disclosure statement at least 7 days before asking the lessor to consent to the assignment; AND
  • the prospective assignee gave a disclosure statement to the assignor before the lessor was asked to consent to the assignment; AND
  • the lessor gave the prospective assignee a disclosure statement and a copy of the lease at least 7 days before the lessor consented to the assignment; AND

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