RETAIL AND COMMERCIAL LEASES ACT 1995 - SECT 20E

RETAIL AND COMMERCIAL LEASES ACT 1995 - SECT 20E

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.