Tenant entitled to terminate commercial lease after landlord fails to investigate potential structural defects: Brotherhood of St Laurence v Sarina Investments Pty Ltd [2024] VSCA 46
Who should read this article? Commercial landlords and tenants. The article will also be relevant to commercial property managers who are often the first port-of-call when these issues arise. In a nutshell: what do you need to know? Victoria’s highest Court has found that [...]
From Stamp Duty to Tax: Major reform to stamp duty following the 2023-24 Victorian State Budget
On Tuesday 23 May 2023 the Victorian Treasurer, Tim Pallas, delivered the 2023-24 State Budget announcing a landmark reform to abolish stamp duty for commercial and industrial properties and introduce a new annual property tax. These changes are expected to take effect from 1 July [...]
VCAT decision provides clarity for retail landlords and tenants: Beware of mixed rent review clauses
VCAT’s recent decision in Q St Kilda Tenancy Pty Ltd v Kane (Building and Property) [2023] 75 provides helpful guidance for retail landlords and tenants concerning rent reviews and the operation of section 35(2) of the Retail Leases Act 2003 (Vic) (RLA). This case concerned [...]
Hands off my deposit… at least for now: creative special condition modifying the operation of statutory deposit release rules deemed void
Vendors in real estate transactions are motivated to have their deposits released as early as possible. This motivation is particularly strong in relation to sales of high-value development sites, which are often sold on terms where settlement may be scheduled many years into the future. [...]
Retail tenant obtains injunction, preventing landlord from terminating lease and subdividing premises pursuant to demolition clause
A recent VCAT decision[1] provides helpful guidance for landlords, tenants and developers about the ability of landlords to rely on demolition clauses to terminate retail leases. What is a ‘demolition clause’? A demolition clause is a clause permitting a landlord to terminate a lease prior [...]
Can a director of a building company be personally liable for misleading or deceptive conduct by failing to obtain domestic building insurance?
Domestic building insurance covers building owners for costs incurred in rectifying structural defects for up to six years and non-structural defects for up to two years to a maximum of $300,000 in the event a builder dies, disappears or becomes insolvent. This form of insurance [...]
Is an owner obligated to give a builder an opportunity to rectify defective building works?
It’s an unfortunate reality. A homeowner engages a builder to construct or renovate a home. A developer engages a builder to construct one or more homes, and then sells them. In either case, the owner/purchaser is susceptible to having to deal with defective building works. [...]
Re-introduction of commercial tenancies rent relief scheme: Victorian Government passes Commercial Tenancy Relief Scheme Act 2021 and finalises new Regulations
Further to our previous update, the Commercial Tenancy Relief Scheme Act 2021 (‘New Act’) received royal assent by the Victorian Government on 6 August 2021 and the Commercial Tenancy Relief Scheme Regulations (‘Regulations’) were released on 24 August 2021. The Regulations The Regulations operate from 28 July 2021 through to 15 [...]
An expensive lesson: prospective purchasers lose $168,000 deposit after failing to comply with subject to finance clause
Buying a property can be one of the biggest and most important transactions you make during your lifetime and it is important you seek professional advice to protect your interests. A decision of the Victorian Supreme Court[1] handed down on 5 August 2021 demonstrates the potentially [...]
Living in a ‘material’ world: off-the-plan purchasers score convincing win over apartment developer in s 9AC(2) case
A decision of the Victorian Supreme Court[1] handed down on 9 August 2021 has highlighted the rights of off-the-plan purchasers to rescind contracts pursuant to s 9AC(2) of the Sale of Land Act 1962 (Act) when changes are made to the proposed plan of subdivision after [...]