New South Wales Consolidated Acts

RETAIL LEASES ACT 1994 - SECT 17

17 Payment of rent when lessor’s fitout not completed

(1) This section applies to a retail shop lease if:

(a) the liability of the lessee to pay rent under the lease commences on the lessee entering into possession of the retail shop (whether or not the lessee is required to enter into possession by a specified date), and

(b) the lessor has fitout obligations under the lease (that is, the lessor is required to provide any finishes, fixtures, fittings, equipment or services before the lessee enters into possession of the shop).

(2) A retail shop lease to which this section applies is taken to provide that:

(a) the lessee is not liable to pay rent, or any other amount payable under the lease by the lessee (such as an amount payable in respect of outgoings), in respect of any period before the lessor has substantially complied with the lessor’s fitout obligations, and

(b) the lessor is not entitled to deny the lessee possession of the retail shop merely because the lessor has not complied with the lessor’s fitout obligations under the lease.