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Leases (Commercial and Retail) Act 2001
100Refusal to consent to assignment or sublease
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100 Refusal to consent to assignment or sublease
(1) The lessor may refuse consent to the assignment of a lease or granting
of a sublease requested under section 95 (Request for consent to
assignment, sublease or mortgage) only if it is reasonable in all the
circumstances to do so.
(2) For subsection (1), the lessor’s refusal is taken to be reasonable if the
lessor has reasonable grounds for believing that—
(a) the prospective assignee or subtenant intends to use the premises
for a purpose not allowed under the lease; or
(b) the prospective assignee or subtenant (taking into consideration
information about any proposed guarantor for the assignee or
subtenant) does not have the financial resources to run the
business; or
(c) the tenant cannot produce a current certificate of occupancy for
the premises; or
(d) the prospective assignee or subtenant does not have adequate
skills to run the business; or
(e) the prospective assignee or subtenant, or the business conducted
by the prospective assignee or subtenant, will not be compatible
with other tenants in the building containing the premises; or
(f) the tenant has failed to rectify a breach of the lease (other than a
breach that has been waived by the lessor).
(3) If the lessor withholds consent on a ground not mentioned in
subsection (2), the lessor has the burden of establishing that refusal to
consent is reasonable.
(4) This section does not authorise anything that would, if it were not
authorised, contravene the Competition and Consumer Act 2010
(Cwlth), part 4.
(5) In this section:
business includes proposed business.