New South Wales Consolidated Acts

RETAIL LEASES ACT 1994 - SECT 44

44 Notice to lessee of lessor’s intentions at end of lease

(1) Not less than 6 months and not more than 12 months before the expiry of a lease, the lessor must by written notification to the lessee either:

(a) offer the lessee a renewal or extension of the lease on terms specified in the notification (including terms as to rent), or

(b) inform the lessee that the lessor does not propose to offer the lessee a renewal or extension of the lease.

Note: A notice under paragraph (b) may include other information as to the lessor’s intentions (for example, that the lessor intends to allow the lessee to remain in possession of the shop as a periodic tenant under any provisions of the lease as to holding over, or as a tenant at will). Because such a statement is only a statement of intention, a lessee should be aware that it may not of itself bind the lessor.

(2) An offer made for the purposes of subsection (1) (a) is not capable of revocation for 1 month after it is made.

Note: This allows the lessee 1 month to decide whether to accept the offer. The lessor may agree to hold the offer open for longer than 1 month. The parties may also negotiate a new lease.

(3) If the lessor fails to give a notification to the lessee as required by this section, the term of the lease is extended until the end of 6 months after the lessor gives the notification required by this section, but only if the lessee requests that extension by notice in writing to the lessor given before the lease would otherwise have expired.

(4) During any extension of the lease under subsection (3), the lessee may terminate the lease by giving not less than 1 month’s notice of termination in writing to the lessor.

(5) This section does not apply to a lease containing an option to renew or extend the lease or that is the subject of an agreement for the renewal or extension of the lease.

(6) If a retail shop lease is for a term of 12 months or less, the periods of 12 months and 6 months in this section are shortened to 6 months and 3 months respectively.