A member asked over 8 years ago

Commercial lease - landlord breaches

I have a situation in Western Australia where, as the lessee of a commercial property, the lessor has taken up space that was for our exclusive use. The law seems to be quite broad: "quiet enjoyment" in relation to lessor obligations. 

The lessor has so far not undertaken any measures to remedy the situation. I also believe there is no cost recovery and hence, through no fault of our own the burden of cost and action is on us. I don't want to spend a lot just to get something removed that isnt meant to be there. 

Should I file in the Magistrates court? We have written twice. Our operation is licensed on the basis of the space allocated to us under the lease.

Law Advisor Research Team
Researchers at LawAdvisor

Hi there. It sounds like you are in a difficult position. The law says that, under a lease agreement, a tenant has a right to ‘exclusive possession’ of the leased property. Exclusive possession means the tenant has a right to exclude the landlord/lessor and third parties from entering, being on or occupying part of the property. It is very likely that your lease agreement grants you, as the tenant, exclusive possession of the property.

However, despite your exclusive possession, the landlord may have limited rights to interfere with your quiet enjoyment of the property. For example, most lease agreement give landlords a right to enter the property to inspect it, provided a minimum amount of notice has been given (e.g. 48 hours) or the tenant has otherwise consented. You should check the terms of the lease agreement to see what entry rights your landlord has.

If you believe the landlord is interfering with your exclusive possession and quiet enjoyment of the property, and this interference is not permitted under the lease agreement, then the landlord may be breaching the lease and their obligations under the Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA). Under this legislation, a landlord must not engage in conduct that is unconscionable. It is possible that, by denying you use of a part of the leased property, the landlord is engaging in such conduct.

If you have been unable to negotiate an outcome directly with the landlord, you should consider using the dispute resolution service offered by the WA Small Business Development Corporation (www.smallbusiness.wa.gov.au). This is a low-cost service to help small businesses resolve disputes with other businesses, such as landlords, through advice and/or mediation.

If this approach is unsuccessful, you can commence proceedings in the WA State Administrative Tribunal (www.sat.justice.wa.gov.au), which has the power to hear disputes relating to commercial leases and make an order remedying the situation.

Suggested way forward

It sounds like you may have a legal claim against your landlord and you would benefit from pursuing one or both of the above avenues. You may also want to consider obtaining formal legal advice about your rights and the best course of action. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered over 8 years ago   Legal disclaimer

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