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LEASES (COMMERCIAL AND RETAIL) ACT 2001 - SECT 100 Refusal to consent to assignment or sublease

LEASES (COMMERCIAL AND RETAIL) ACT 2001 - SECT 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.