Subdiv 2Rules of conduct at end of term

Subdivision 2—Rules of conduct at end of term 20D—Preference to be accorded to existing lessee (1) If a lessor of premises in a retail shopping centre proposes to re-let the premises, and an existing lessee wants a renewal or extension of the term, the lessor must give preference to the existing lessee over other possible lessees of the premises. (2) The lessor is to presume that the existing lessee wants a renewal or extension of the term unless the lessee has notified the lessor in writing within 12 months before the end of the term that the lessee does not want a renewal or extension. (3) However, the lessor is not obliged to prefer an existing lessee if— (a) the lessor reasonably wants to change the tenancy mix in the retail shopping centre; or (b) the existing lessee has been guilty of a substantial breach or persistent breaches of the lease; or (c) the lessor requires vacant possession of the premises for the purposes of demolition or substantial repairs or renovation; or (d) the lessor— (i) does not propose to re-let the premises within a period (the relevant period) of at least 6 months from the end of the term; and (ii) requires vacant possession of the premises for the lessor's own purposes during the relevant period (but not for the purpose of carrying on a business of the same kind as the business carried on by the lessee); or (e) the renewal or extension of the lease would substantially disadvantage the lessor; or (f) the lessee's right of preference is, in the circumstances of the case, excluded by regulation. 20E—Implementation of preferential right (1) If an existing lessee of premises in a retail shopping centre has a right of preference, the lessor must, at least 6 months (but not more than 12 months) before the end of the term, begin negotiations with the existing lessee for a renewal or extension of the lease. (2) In particular, before agreeing to enter into a lease with another person, the lessor must— (a) make a written offer to renew or extend the existing lease on terms and conditions no less favourable to the lessee than those of the proposed new lease; and (b) provide the existing lessee with a copy of the lease or proposed lease (as renewed or extended) and the disclosure statement required in relation to it. (3) When a lessor offers to renew or extend a retail shop lease under this section— (a) the offer remains open for a reasonable period (at least 10 days not including any Saturday, Sunday or public holiday) after it is given or until its earlier acceptance; and (b) the lessee must notify the lessor in writing within the time stated in the offer whether the lessee accepts the offer; and (c) if notice is not given within that period, the offer lapses. (4) The negotiations are to continue until— (a) the lessee rejects an offer under this section (or the offer lapses); or (b) the lessee indicates in writing that the lessee does not want to continue negotiations for a renewal or extension of the lease. (5) The negotiations are to be conducted in good faith. 20F—Notice of absence of right of preference (1) If a lessee of a retail shop in a retail shopping centre does not have a right of preference, the lessor must, at least 6 months (but not more than 12 months) before the end of the term of a lease, by written notice— (a) notify the lessee of that fact; and (b) state why there is in the circumstances of the case no right of preference1. (2) If the term of the lease is for 12 months or less, the periods referred to in subsection (1) are to be reduced by one-half.