In Brief
In the decision of Steambrook Pty Ltd v Boulton (Building
and Property) [2021] VCAT 996, the rental determination issued
on 2 July 2020 was set aside for not complying with section 37 of
the Retail Leases Act 2003 (Vic). The valuer failed to
provide detailed reasons in the report.
What you need to know
VCAT seems far more willing than Courts, to set aside rental
valuations, where detailed reasons are not given. If you are
undertaking a rental valuation, you should provide detailed reasons
for the rental valuation, or there is a chance that if the lease is
governed by the Act, it could be set aside by VCAT.
Background
As I have stated before, unless the parties have agreed on the
area of the premises, you should, at the parties' cost, engage
a surveyor to determine the area of the premises. In this case, the
parties agreed on the area, after it was initially contested. So no
issue in this matter.
