Queensland Consolidated Acts

PROPERTY LAW ACT 1974 - SECT 157

157 Intended improvements

(1) Despite section 156 , compensation shall not be payable in respect of any improvement mentioned in schedule 4 , part 1 unless the tenant has, not more than 3 months nor less than 2 months before beginning to make such improvement, given to the landlord, or to the landlord’s agent duly authorised in that behalf, notice in writing of the tenant’s intention to make the improvement and of the manner in which the tenant proposes to do the intended work.

(2) The landlord may within 1 month from the giving of such notice serve upon the tenant a dissent in writing to such intended improvement and require the matter in difference to be referred to arbitration, and on service of the dissent and requirement a reference may be had in manner provided by this division.

(2A) If the arbitrator is satisfied that any improvement specified in the tenant’s notice will increase the value of the holding to an incoming tenant and will be a suitable and desirable improvement, the arbitrator shall make an award accordingly, and the tenant shall be entitled to compensation for every improvement which the tenant makes under such award.

(2B) If the arbitrator is satisfied that such improvement will not increase the value of the holding to an incoming tenant, and will be an unsuitable and undesirable improvement, the tenant shall not, if the tenant executes such improvement, be entitled to any compensation in relation to the improvement.

(3) If no agreement is entered into within 1 month after such notice has been given, or if there is a reference to arbitration, then, within 1 month after the award has been made the landlord may, unless the notice of the tenant is previously withdrawn, undertake to make the improvement, and may make the same accordingly in any reasonable and proper manner the landlord thinks fit, and may charge the tenant interest at the rate of 5% per annum on the outlay incurred in making the improvement.

(3A) Such interest shall be payable and recoverable as rent in the same manner and at the same time as the rent in respect of the holding is payable and recoverable.

(4) In default of any such agreement or undertaking, and also in the event of the landlord failing to comply with the landlord’s undertaking within a reasonable time, the tenant may make the improvement, and shall in that case be entitled to compensation in respect of the improvement.