Retail Shop Leases Act 1994
sec.36ARatchet rent provision void
Start here
Get a plain-English read of sec.36A
Turn the raw legal text into a practical explanation grounded in Retail Shop Leases Act 1994.
sec.36A Ratchet rent provision void
Subsection (2) applies if a retail shop lease provides a basis for rent review under which the rent may be varied, including by a decrease, but the lease includes a ratchet rent provision. The ratchet rent provision is void. However, if, under a retail shop lease, a major lessee gives a notice under section 27 (8) , a ratchet rent provision that would otherwise be void is not void. In this section— ratchet rent provision means any provision of a retail shop lease to the extent that it— prevents, or enables the lessor or another person to prevent, the rent decreasing under a rent review; or limits or specifies, or allows the limitation or specification of, the amount by which the rent may decrease under a rent review; or prevents, or allows the avoidance of, the rent review by the lessor or another person for a purpose mentioned in paragraph (a) or (b) . s 36A ins 2011 No. 7 s 24 amd 2016 No. 21 s 31 (sec.36A-ssec.1) Subsection (2) applies if a retail shop lease provides a basis for rent review under which the rent may be varied, including by a decrease, but the lease includes a ratchet rent provision. (sec.36A-ssec.2) The ratchet rent provision is void. (sec.36A-ssec.3) However, if, under a retail shop lease, a major lessee gives a notice under section 27 (8) , a ratchet rent provision that would otherwise be void is not void. (sec.36A-ssec.4) In this section— ratchet rent provision means any provision of a retail shop lease to the extent that it— prevents, or enables the lessor or another person to prevent, the rent decreasing under a rent review; or limits or specifies, or allows the limitation or specification of, the amount by which the rent may decrease under a rent review; or prevents, or allows the avoidance of, the rent review by the lessor or another person for a purpose mentioned in paragraph (a) or (b) .
- (a) prevents, or enables the lessor or another person to prevent, the rent decreasing under a rent review; or
- (b) limits or specifies, or allows the limitation or specification of, the amount by which the rent may decrease under a rent review; or
- (c) prevents, or allows the avoidance of, the rent review by the lessor or another person for a purpose mentioned in paragraph (a) or (b) .