203Exceptions to s 201 and s 202

203 Exceptions to s 201 and s 202 (1) Section 201 (Instruments required to be in writing) and section 202 (Creation of interests in land by word of mouth) do not— (a) affect the creation by word of mouth of a lease that is at the highest rent reasonably obtainable without taking a fine and that takes effect in possession— (i) for a term not longer than 3 years without a right for the lessee to extend the term; or (ii) for a term not longer than 3 years with a right for the lessee to extend the term, at the best rent reasonably obtainable without taking a fine, for a further period, but so that the period of the lease and the period of the extension do not total longer than 3 years; or

(b) invalidate a disposition by will; or (c) affect an interest validly created before 26 June 1986; or (d) affect the law about part performance. Note A ‘fine’ is an amount paid by a tenant to a landlord for the grant, transfer or renewal of a lease. It is not an amount reasonably demanded to cover the landlord’s expenses, rather an extortionate amount demanded by a landlord without reasonable cause (see Butterworths, Australian Legal Dictionary, p 477). (2) In this section: