Circumstances may arise when a tenant seeks to sub-let or assign their lease over retail premises. There are strict guidelines on method of seeking consent and whether the landlord is permitted to withhold their consent.
If your tenant is seeking consent to sub-let or assign their retail lease, remember:
- Your tenant must comply with the legislation – including seeking consent in writing;
- Failure to respond may imply landlord consent;
- Be mindful that the landlord must respond within a certain timeframe;
- Check the terms of your lease whether ‘absolute discretion’ permitted;
- Generally cannot unreasonably withhold consent
- Consult the relevant legislation in your jurisdiction as to whether you can withhold consent and under what circumstances; and
- If you are unsure about consenting to sub-letting or assigning a lease over your retail premises, consult independent legal advice.
These are the details specific to the Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998 in Tasmania
Landlord entitled to seek further information on financial standing, relevant business skills of new tenant, proposed use of premises, financial position of guarantors and 2 references.
Landlord Response Time
Circumstances Landlord consent may be withheld
- Proposal to change premises use
- Proposed assignee does not have financial standing or necessary business skills
- Proposed assignee doesn’t enter into written agreement with landlord (Clause 28(c))
No Response Implies Consent?
Absolute Discretion permitted?
Landlord required to seek further information on new tenant within 14 days.
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