25 November, 2021
Commercial Lease Disputes
One major issue which could be costly and time-consuming for both landlords and tenants is a commercial lease dispute. These issues are usually complex, and would often need the advice of commercial lease lawyers before making any prudent actions and decisions. Failure to do proper research and getting professional counsel often could have unintended consequences for the parties involved. It is very important from the onset to know what your rights are, what leasing laws say about your dispute, and what the legal processes regarding commercial lease disputes are. A commercial lease dispute lawyer Queensland can give you sound, professional advice when you need it the most.
Pandemic Law Changes
It should be noted that due to the COVID-19 pandemic, there could be a rise in these kinds of disputes due to tenants being laid off work, or earning much less than they usually would. The Government’s COVID-19 commercial leasing regulations have been wound back, allowing tenants to negotiate rent relief with their landlords. This could have the effect that when the time comes to paying rent in full again, tenants could find themselves in financial difficulties, or having to pay more than they usually would. Getting proper legal advice with regards to these new law changes is paramount in order to avoid complications in the future.
Breach of Lease
A breach of a contract’s terms, or the non-payment of dues is quite common in commercial leasing. It is important for both tenants and landlords to know how to resolve this breach, and what would happen if this would not be corrected quickly. A common issue is that rates could default, yet this doesn’t mean the lease is terminated. Tenants would just be surprised at how much they would be now paying after.
In order to resolve a breach of lease, several steps are often undertaken. These include serving a notice of default to remedy the breach, the re-entry of premises and lockouts, and finally the commencement of legal actions to recover losses.
Each of these actions should be carefully considered before actions are taken, as these would often have far-reaching consequences for the parties involved. Typical responses to these steps include the rectification of the breach, serving a court injunction, and the filing of a counterclaim to be paid for damages incurred.
Establishing the Grounds of the Breach
Often, the first step in breach of lease disputes would be to establish the rights and responsibilities of all parties involved. Legal advice is often sought in order for legal grounds to be drawn up and communicated to each party. Details such as the method of compensation, such as financial support, or just for an agreement to be reached between the parties are often first attempted during this stage.
Private Negotiation
Correspondence between the parties involved is often done in private at first, or through their lawyers. Whether or not legal counsel is sought during the initial stages of the dispute is important to note in order to lower potential liabilities or to avoid incriminating oneself. Getting legal advice early is recommended in order to establish your legal position, knowing your own rights, and getting informed of the laws involved in the dispute.
Notice of Breach
A landlord intending to serve a notice of breach should ensure that it is done correctly and in accordance with the law. This is important in both commercial or retail lease disputes. If the notice is not correctly drafted and served in accordance with proper legal methods, it could become invalid and struck out by the courts.
Re-entry and Lockouts
A lockout can be done by the landlord if the tenant involved fails to rectify the breach of lease which is specified in the notice served to the tenant. Once a tenant is locked out, they may apply for a court injunction in order to gain re-entry to the premises. Lockouts should always be carefully handled to avoid any compensation claims due to damages experienced during the lockout, or if the lockout turns out to be unlawful.
Legal Action
Most breach of lease issues are handled by the VCAT, although matters could also be resolved much earlier via private negotiation or third party mediation. Most cases actually are settled even before they reach the court, or with the VCAT. However, when litigation does come into play, a settlement agreement is often drawn out with a set end date being put into play. This would often mark the end of the dispute.
