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NSW Odd Commercial Lease Clause in Victoria?

Discussion in 'Commercial Law Forum' started by Clancy, 9 November 2017.

  1. Clancy

    Clancy Well-Known Member

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    Hi,

    Our company is taking a commercial lease in Melbourne Victoria, and we are based in Sydney NSW.

    There are a couple of very odd looking clauses in the Victoria lease which the Victorian agent insists is standard and cannot be changed.

    Code 143
    Commercial Lease

    Clause 36.3 A dispute between the tenant and another tenant or occupier of the building about the use of the premises or the building must be promptly referred by the tenant to the landlord or the landlords managing agent for determination. Unless the Act applies, the determination of the landlord or the landlords managing agent will be binding and the tenant or occupier have no right to legal representation.

    So it is especially the last line about no right to legal representation we find most surprising?

    Clause 36.4 In determining a dispute under clause 36.3, the landlord or the managing agent is not required to strictly comply with the rules of natural justice and the laws or rules of evidence do not apply and they may inform themselves as they see fit with the intent the dispute will be determined in a reasonable manner as speedily, informally, and inexpensively as possible.

    Not required to strictly comply with rules of natural justice?

    Is this seriously a 'standard' clause in Victoria?
     
  2. Rob Legat - SBPL

    LawTap Verified Lawyer

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    Regardless of anything else, these may fail the unfair contract provisions requirements of the Australian Consumer Law, as it sounds like this is their standard terms lease contract.
     
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  3. Clancy

    Clancy Well-Known Member

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    Thanks for the reply.

    If it was up to me, we would never have moved in, in the first place. But my boss is lazy. If it was up to me, as soon as they say "it cannot be changed", i say "see ya".
     
  4. Rod

    Rod Well-Known Member

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    Cross the clauses out, sign it and send it back.
     
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  5. Tim W

    Tim W Lawyer
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    Do as you should have done first up,
    and get formal, case specific advice
    from a property lawyer in Victoria,
    who will know their way around commercial leases.
     
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  6. Clancy

    Clancy Well-Known Member

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    Did, rejected.

    Should have done? And how would we know that is what we should have done unless our own commercial lawyer in NSW had advised us to do that, which he did not?
     
  7. Clancy

    Clancy Well-Known Member

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    Update;

    Our lawyer spoke directly with the agent. We do not know what was said, but all of a sudden the clauses that 'cannot be changed' are suddenly now being changed!
     
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