Are you a landlord or tenant and need assistance interpreting the new law changes for your lease?
Contact expert commercial leasing lawyer, Kristal Rogers today to set up an appointment for further advice.
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+64 9 837 6896

13 October, 2021 | Kristal Rogers
The latest version of the Auckland District Law Society (“ADLS”) precedent Deed of Lease includes a clause which provides abatement (effectively non-payment) of a “fair proportion of the rent” where access restrictions prevent the tenant from fully operating its business. This provision arose in response to the Christchurch earthquakes where tenants were prevented from accessing premises inside the red zone. However, many clients are operating with earlier versions of the ADLS lease or leases drafted on a non-ADLS Deed of Lease, which means no rental abatement clause is available to them.
The Government has proposed a law change to the Property Law Act which would ‘imply’ a clause into leases which do not have a rental abatement clause. This implied clause would provide that a “fair proportion” of rent and outgoings will not be required to be paid when there is an “epidemic”, and the tenant is “unable to gain access to all or any part of the leased premises to fully conduct their operations from all or any part of the leased premises, because of reasons of health or safety related to the epidemic”.
If you require assistance interpreting the new law in terms of your lease or negotiating the “fair proportion” of rent payable (as either tenant or landlord), please email expert commercial lease lawyer Kristal Rogers at kristal.rogers@smithpartners.co.nz or call 09 837 6896.
13 October, 2021 | Kristal Rogers
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