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ARTICLE · 25 APRIL 2012

Terminating a Lease in NSW - What not to do

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If a landlord intends to terminate a lease, the lease should be terminated effectively with clear and direct language.

AustraliaReal Estate and Construction
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IN BRIEF

A landlord communicating to a tenant a termination of a lease must be clear. This is evident from the decision in Dee-Tech Pty Ltd v Neddam Holdings Pty Ltd [2010] NSWCA.

THE TERMS PROVIDE FOR THE RIGHT

A lease will generally provide for the circumstances where a landlord is entitled to exercise its contractual right to terminate a lease. The relevant termination may be by re-entry or notice of breach to the tenant of an essential term.

Except in the case of non payment of rent, the landlord must comply with the provisions of section 129 of the Conveyancing Act 1919 (NSW) in order for the termination to be effective.

COMPLIANCE

In order for a notice of termination of a lease to be valid, the notice must make a clear demand for possession. This means that the notice to terminate a lease must include an unequivocal act or statement that the landlord is treating the lease as at an end.

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