Samuel Brown is a lawyer for real estate projects and investments focused on real estate and infrastructure transactions, developments and investment funds. Mr. Brown`s specific expertise includes the acquisition and sale of development and construction assets, public tenders, major projects and development, complex real estate and infrastructure developments, securities restructurings and subdivisions, transaction restructurings, fund creation, asset management and investment contracts, real estate investments and joint venture leasing. Under the regulation, it is mandatory for commercial landlords and tenants to mediate before asserting certain claims in civil courts. However, you may be entitled to protection under Regulation (No 2) No 2. 2020 for retail contracts and other commercial leases (COVID-19). If so, your landlord may not terminate your lease if you can`t pay your rent due to COVID-19. If commercial landlords do not comply with their obligations under the NSW Regulation, the tenant must first seek mediation through the NSW Small Business Commission. If you need help communicating with your landlord or tenant, please contact NSW for Business Service. The regulation, which was due to expire on 25 October 2020, brings into force the mandatory code of conduct of the national firm – principles of commercial leasing of SMEs during COVID19.
A summary of the rules, published by Swaab`s property team, is available here: www.swaab.com.au/news/covid-19-retail-and-other-commercial-leases-covid-19-regulation-2020. As part of the recent announcement, landlords are also entitled to a property tax reduction of up to 25% if landlords grant rent facilities to tenants in financial difficulty from October to December 2020. A copy of the NSW government press release can be found here. The Court found that the concept of “rental craftsmanship” generally refers to the total turnover of a given tenant, as well as to the costs and benefits on all the sites where the tenant operates. But then again, the rule is not absolute – the court found that agreements between landlords and tenants must take into account the impact of COVID-19 on the tenant “especially in terms of income, expenses and profitability. all the premises are different, as are their business agreements. The amending Regulation introduces into the Regulation a new clause obliging the tenants concerned to give the lessor the following with regard to the relevant rental agreement: in addition to this recent development with the mandatory code of conduct, trustees of self-managed pension funds must also take into account the attitude of the ATO when your self-managed pension fund negotiates an agreement with your company, which operates from the premises. And the decisive advice is that all changes to the lease agreement must be clearly documented and economically appropriate. The ad gives commercial tenants and landlords other ways to renegotiate the terms of their leases. It is also possible for commercial tenants to apply for additional rent facilities if they can justify a reduced business during the pandemic period. Even though an agreement can be reached between the landlord and the tenant, it is very important that it is duly documented in order to avoid any subsequent misunderstandings. For example, there is a lot of talk about a “rental leave” – but is it a waiver of the tenancy (and not refundable later) or a postponement (for payment to a later date)? If an eligible tenant has previously entered into a rent relief agreement with their landlord, this agreement will not be automatically extended until 31 December 2020 (unless the parties have agreed in advance).
If a tenant remains eligible under the new regulation, they can submit a new application for a rent facility before 31 December 2020. . .