Summer trading hours and leases

At this time of year with Christmas trading and summer there may be lessors who are approached by lessees requesting a change to their trading hours.  Leaving aside resource management restrictions, retail leases commonly give the lessor an unqualified right to approve any modification in trading hours.  Further these retail leases tend to include a "keep open" covenant. …

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Destruction and leases (again)

There has been another case in relation to the ADLS standard lease clause, which provides the term of a lease shall at once terminate if there is destruction or damage rendering the premises untenantable.  We wrote about an April 2011 decision of the Auckland High Court following a fire in Kingsland (see Destruction and leases).  The latest decision was…

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Can a lessor refuse to renew?

A lessor must tread very carefully when considering the position of a lessee who has not yet exercised its right to renew the lease.  The Property Law Act 2007 assists a lessee by providing relief in two situations where a right of renewal would otherwise be lost: • Where the lessee has breached a condition precedent to…

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Invalid cancellation of lease

Lessors are encouraged to take a lot of care and attention when cancelling leases under the Property Law Act 2007. The Supreme Court’s decision on 10 May 2011 in Ingram & Knee v Patcroft Properties Limited shows that care and attention is very important. The lessor was held liable to pay damages to the lessee…

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Destruction and leases

What is happening in Christchurch is impacting on the New Zealand property industry in all sorts of ways.  One of these is the debate regarding contractual obligations between the parties.  Most leases inadequately deal with the situation in Christchurch.  Whilst they may deal with partial destruction and total destruction they do not adequately cover many…

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The Reasonable Landlord

 A recent enquiry about a landlord unreasonably withholding consent raised some interesting issues.  The query related to a proposed change of use under a lease.  A change of use can be prohibited in lease.  However, if it is allowed with the consent of the landlord, the landlord must be reasonable in determining whether or not to give…

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Consent under the Property Law Act 2007

You will recall that a lessor cannot unreasonably withhold or delay consent to an assignment, sublease or change of use if there is a covenant in the lease requiring the lessee to first obtain the lessor’s consent.  A lessor who unreasonably withholds consent or delays can be held responsible for damages. We have lived with these…

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Rent reviews – may or shall…

Can a lessor be made to review the rent?  Under the modern standard form leases, yes they can.  From the ADLS 4th edition (2002) lease onwards, the standard ADLS deed of lease allows either party to initiate a rent review.  Those standard leases also include a soft ratchet, i.e. on a rent review the rent…

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