Northern Territory Consolidated Acts

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BUSINESS TENANCIES (FAIR DEALINGS) ACT 2003 - SECT 61

Key-money for renewal or extension prohibited

    (1)     A person must not, as landlord or on behalf of the landlord, seek or accept key-money in connection with the renewal or extension of a retail shop lease.

Maximum penalty:     100 penalty units.

    (2)     A provision of a retail shop lease is void to the extent that it requires or has the effect of requiring key-money in connection with the renewal or extension of the lease.

    (3)     If a person contravenes subsection (1), the tenant is entitled to recover from the landlord as a debt:

        (a)     a payment made; or

        (b)     the value of a benefit conferred by the tenant and accepted;

by or on behalf of the landlord in contravention of this section, whether or not the person is found guilty of an offence against that subsection.

    (4)     This section does not prevent a landlord from:

        (a)     requiring payment by the tenant of a reasonable sum in respect of legal or other expenses incurred in connection with the renewal or extension of the lease; or

        (b)     receiving payment of rent in advance; or

        (c)     securing performance of the tenant's obligations under the renewed or extended lease by requiring the provision of a bond or security deposit or a guarantee from the tenant or another person; or

        (d)     seeking and accepting payment for the grant of a franchise in connection with the renewal or extension of the lease.



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