Northern Territory Consolidated Acts

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BUSINESS TENANCIES (FAIR DEALINGS) ACT 2003 - SECT 49

Demolition

    (1)     If a retail shop lease provides for termination of the lease on the grounds of the proposed demolition of the building of which the retail shop forms part, the lease is taken to include provisions to the following effect:

        (a)     the lease cannot be terminated on that ground unless and until the landlord has provided the tenant with details of the proposed demolition sufficient to indicate a genuine proposal to demolish that building within a reasonably practicable time after the lease is to be terminated;

        (b)     the lease cannot be terminated by the landlord on that ground without at least 6 months written notice of termination;

        (c)     if notice of termination on that ground is given to the tenant, the tenant may terminate the lease by giving the landlord not less than 7 days written notice of termination at a time within 6 months before the termination date notified by the landlord.

    (2)     If a retail shop lease is for a term of 12 months or less, the period of 6 months mentioned in subsection (1)(b) and (c) is shortened in each case to 3 months.

    (3)     If:

        (a)     a retail shop lease is terminated on the grounds of the proposed demolition of the building of which the retail shop forms part; and

        (b)     the demolition of the building is not carried out within a reasonably practicable time after the termination date notified by the landlord;

the landlord is liable to pay the tenant reasonable compensation for damage suffered by the tenant as a consequence of the early termination of the lease, unless the landlord establishes that at the time notice of termination was given by the landlord there was a genuine proposal to demolish the premises within that time.

    (4)     If a retail shop lease is terminated on the grounds of the proposed demolition of the building of which the retail shop forms part, the landlord is liable to pay the tenant compensation for the fitout of the retail shop if the tenant is required under the lease to fit out the retail shop, whether or not the demolition of the building is carried out.

    (5)     For this section, the demolition of the building of which a retail shop forms part includes a substantial repair, renovation or reconstruction of the building that cannot be carried out practicably without vacant possession of the shop.



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