Australian Capital Territory Current Acts

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Notice of intention to vacate—award of compensation

    (1)     If a lessor received a notice of intention to vacate before the end of a fixed term agreement, and the date nominated in the notice as the date when the tenant intends to vacate is a date before the end of the agreement, the lessor may—

        (a)     accept the notice; or

        (b)     if the agreement does not include a break lease clause, apply to the ACAT for compensation for—

              (i)     the loss of the rent that the lessor would have received had the agreement continued to the end of its term; and

              (ii)     the reasonable costs of advertising the premises for lease and of giving a right to occupy the premises to another person.

    (2)     On application, the ACAT may award compensation of the kind mentioned in subsection (1) (b).

    (3)     The amount of compensation the ACAT may award—

        (a)     under subsection (1) (b) (i) must not be more than the lesser of the following:

              (i)     25 weeks rent;

              (ii)     rent in relation to the unexpired part of the agreement; and

        (b)     under subsection (1) (b) (ii) must not be more than 1 week's rent.

    (4)     In deciding the amount of compensation that may be awarded in relation to the reasonable costs of advertising, the ACAT must have regard to when, apart from the vacation of the premises—

        (a)     the agreement would have ended; and

        (b)     the lessor would have incurred the costs.

    (5)     No compensation may be awarded to the lessor if the agreement is lawfully terminated under the following sections:

        (a)     section 46A (Termination of agreement for aged care or social housing needs);

        (b)     section 46B (Termination of fixed term agreements if premises for sale);

        (c)     section 64AA (Termination—affected residential premises);

        (d)     section 64AB (Termination—eligible impacted property).

    (6)     In this section:

"break lease clause"—see section 8 (4).

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