South Australian Current Acts

RETAIL AND COMMERCIAL LEASES ACT 1995 - SECT 57

57—Relocation

If a retail shop lease contains provision that enables the lessee's business to be relocated, the lease is taken to include provision to the following effect:

            (a)         the lessor cannot require the relocation of the lessee's business unless and until the lessor has provided the lessee with details of a proposed refurbishment, redevelopment or extension sufficient to indicate a genuine proposal that is to be carried out within a reasonably practicable time after relocation of the lessee's business and that cannot be carried out practicably without vacant possession of the lessee's shop; and

            (b)         the lessor cannot require the relocation of the lessee's business unless the lessor has given the lessee at least three months written notice of relocation (a "relocation notice") and that notice gives details of an alternative shop to be made available to the lessee; and

            (c)         the lessee is entitled to be offered a new lease of the alternative shop on the same terms and conditions (excluding rent) as the existing lease except that the term of the new lease is to be for the remainder of the term of the existing lease ¹ ; and

            (d)         if a relocation notice is given, the lessee may terminate the lease within one month after the relocation notice is given by giving written notice of termination to the lessor, in which case the lease is terminated three months after the relocation notice was given unless the parties agree that it is to terminate at some other time; and

            (e)         if the lessee does not give a notice of termination under paragraph (d), the lessee is taken to have accepted the offer of a lease unless the parties have agreed to a lease on some other terms; and

            (f)         the lessee is entitled to payment by the lessor of the lessee's reasonable costs of the relocation, including legal costs ² .

Notes—

1         Paragraph (c) only specifies the minimum entitlements that the lessee can insist on. It does not prevent the lessee from accepting other arrangements offered by the lessor when the details of a relocation are being negotiated.

2         This section does not prevent the parties negotiating a new lease for the purpose of relocating the lessee. Paragraph (f) only specifies the minimum entitlements that the lessee can insist on and the parties can come to some other arrangement for the payment or sharing of the lessee's relocation costs when the details of a relocation are being negotiated.