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ARTICLE · 06 OCTOBER 2014

Understanding how an option for renewal works

HopgoodGanim
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The case is a reminder of how important it is for both parties to a lease to understand how an option for renewal works.

AustraliaReal Estate and Construction
Meryl Snow
Meryl Snow
James Bottomley
James Bottomley
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The judgment of Her Honour, Mullins J of the Queensland Supreme Court in JV Pub Group Pty Ltd v Red Carpet Real Estate Pty Ltd (delivered on 22 September 2014) is a salient reminder of how important it is for both parties to a lease to understand how an option for renewal works.

In this Alert, Special Counsel Anthony Boge outlines important aspects of the judgment.

Key Points

  • For a tenant it is important to understand the steps it needs to take to exercise an option for renewal and the time frame for taking those steps
  • For a landlord it is important to be aware of conditions that must be met for exercise of an option and how the landlord should respond to any purported exercise of the option or a failure to exercise the option.

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