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We told you so - ‘Ratchet’ Rent Review Clauses to be Outlawed for Qld Retail Leases
8 November 2010
As predicted by us earlier this year, the Hon. Cameron Dick, Attorney General for Queensland announced on 3 November that he will introduce amendments to the Retail Shop Leases Act to outlaw ratchet rent reviews.
A ratchet rent review clause prevents rent from decreasing when a CPI or market rent review is carried out.
The amendments are intended to overturn the startling decision of the Court of Appeal in Connor Hunter v Keencrest Pty Ltd [2009] which declared that ratchet rent review clauses were ok - thus closing a legislative loophole which has existed since October 1994.
We will post a further update when amendments to the Retail Shop Leases Act are introduced into Parliament.
For more information regarding this reform and how it might affect your business please contact Cameron Graham or Clive Nichol.
A ratchet rent review clause prevents rent from decreasing when a CPI or market rent review is carried out.
The amendments are intended to overturn the startling decision of the Court of Appeal in Connor Hunter v Keencrest Pty Ltd [2009] which declared that ratchet rent review clauses were ok - thus closing a legislative loophole which has existed since October 1994.
We will post a further update when amendments to the Retail Shop Leases Act are introduced into Parliament.
For more information regarding this reform and how it might affect your business please contact Cameron Graham or Clive Nichol.