sec.27ALessee may require early determination of current market rent

sec.27A Lessee may require early determination of current market rent

This section applies if a retail shop lease provides for an option on the lessee’s part to renew or extend the lease at the current market rent of the leased shop. However, this section does not apply if— the lessee is a major lessee; and before the lessee enters into the lease, the lessee gives the lessor a written notice stating that the lessee agrees that this subdivision does not apply in relation to the lease; and the lease provides for the timing and basis for each review of the lease. Unless the current market rent has already been agreed between the lessor and lessee, the lessee may, by written notice given to the lessor in the early determination period, ask for the current market rent to be determined. Sections 28 (2) and (3) and 28A to 35 apply to the determination. The current market rent must be determined as at the date the request is made under subsection (2) . The rent payable under the renewal or extension is the current market rent determined under this section. Despite any other provision of this Act or the lease, the last day on which the option mentioned in subsection (1) may be exercised is the day that is 21 days after the lessee receives written notice of the current market rent determined under this section. In this section— early determination period means— for a lease of not more than 1 year, the period— starting 3 months before the option expiry day; and ending 1 month before the option expiry day; or for a lease of more than 1 year, the period— starting 6 months before the option expiry day; and ending 3 months before the option expiry day. option expiry day means the last day on which the option to renew or extend the lease may, under the lease, be exercised. s 27A ins 2006 No. 4 s 16 amd 2016 No. 21 s 25 (sec.27A-ssec.1) This section applies if a retail shop lease provides for an option on the lessee’s part to renew or extend the lease at the current market rent of the leased shop. (sec.27A-ssec.1A) However, this section does not apply if— the lessee is a major lessee; and before the lessee enters into the lease, the lessee gives the lessor a written notice stating that the lessee agrees that this subdivision does not apply in relation to the lease; and the lease provides for the timing and basis for each review of the lease. (sec.27A-ssec.2) Unless the current market rent has already been agreed between the lessor and lessee, the lessee may, by written notice given to the lessor in the early determination period, ask for the current market rent to be determined. (sec.27A-ssec.3) Sections 28 (2) and (3) and 28A to 35 apply to the determination. (sec.27A-ssec.4) The current market rent must be determined as at the date the request is made under subsection (2) . (sec.27A-ssec.5) The rent payable under the renewal or extension is the current market rent determined under this section. (sec.27A-ssec.6) Despite any other provision of this Act or the lease, the last day on which the option mentioned in subsection (1) may be exercised is the day that is 21 days after the lessee receives written notice of the current market rent determined under this section. (sec.27A-ssec.7) In this section— early determination period means— for a lease of not more than 1 year, the period— starting 3 months before the option expiry day; and ending 1 month before the option expiry day; or for a lease of more than 1 year, the period— starting 6 months before the option expiry day; and ending 3 months before the option expiry day. option expiry day means the last day on which the option to renew or extend the lease may, under the lease, be exercised.