52Market rent—rent reviews, options and renewals

52 Market rent—rent reviews, options and renewals (1) Subsection (2) applies in relation to a lease if— (a) the lease states that market rent is to be charged for premises; or (b) market rent is to be charged for the premises because of section 49 (Rent setting or review if lease method void). (2) The lessor or tenant may ask the Magistrates Court to refer a dispute about market rent for the lease for mediation if the lessor and tenant cannot agree on the market rent for the premises within 14 days after either tells the other that it disputes the proposed rent. (3) The lessor or tenant may also ask the Magistrates Court to refer a dispute about the rent to be paid under a renewal to mediation if— (a) the lessor— (i) proposes to renew the lease and makes an offer to renew the lease in response to a request under section 107 (Lessor’s intentions about renewal); or (ii) gives the tenant preference under section 108 (Rules of conduct at end of lease term for shopping centre leases) by making an offer to the tenant to renew the lease; or (iii) otherwise makes a renewal offer to the tenant before the end of 12 months after the end of the existing lease; and (b) the tenant accepts the lessor’s offer to renew the lease subject to the rent for the lease being market rent. (4) On request under subsection (2) or (3), the Magistrates Court must— (a) if the court considers that mediation would not be productive or if the parties agree—after consultation with the parties, appoint a valuer to work out the market rent; or (b) refer the dispute to a mediator for mediation. Note 1 For the making of appointments (including acting appointments), see the Legislation Act, pt 19.3. Note 2 In particular, a person may be appointed for a particular provision of a law (see Legislation Act, s 7 (3)) and an appointment may be made by naming a person or nominating the occupant of a position (see s 207). (5) If the Magistrates Court refers a dispute for mediation, the mediator must report the result of the mediation to the court not later than 28 days after the dispute was referred. (6) If the mediator reports to the Magistrates Court that the parties to the lease cannot agree on the market rent, the court must, after consultation with the parties, appoint a valuer to work out the market rent. (7) In this section, a proposal or offer to renew the lease does not include an option to renew contained in the lease.